SR&ED for Pharmaceutical Companies
SR&ED (Scientific Research & Experimental Development) is a government program that rewards companies that perform R&D in Canada. The program makes Canada a more economically competitive and technologically advanced nation and it has been in existence since the 80’s. The Canadian incentive program is one of the most generous R&D programs in the world.
The SR&ED program is not a grant, but strangely enough, does actually behave like a grant. Traditional grants are pre-approved before work commences. SR&ED grants for pharmaceuticals are retroactive and approved after the fiscal year-end of the corporation.
Most pharmaceutical companies qualify for the SR&ED Tax Credit Program.
SR&ED Claim for Pharmaceutical Industry
If you answer yes to any of the following questions you could be sitting on an untapped refund.
- Is your pharmaceutical company incorporated? Do you have a BN?
- Do you develop new pharmaceutical products or medicine?
- Are you a CRO (Contract Research Organization) involved in pharmaceutical trials?
- Are you involved in Phase I – Phase IV clinical trials?
- Do you obtain consent from clinical trial participants?
- Do you follow all formal regulations, requirements relating to the development of medicines or pharmaceutical products?
- Have you acquired an advancement in knowledge in a field of science or medicine?
SR&ED Eligibility for Pharma
There are only 3 criteria for eligibility plus evidence.
- Scientific or medical uncertainty
- Scientific or medical advancement
- Systematic investigation
- plus Technical Content