SR&ED and what else a Canadian studio can claim in 2026
Canada's main route is SR&ED. A qualifying Canadian-controlled private company gets a 35% refundable credit on its first CAD 3 million of research spend, a limit recently raised to CAD 6 million, and everyone else gets 15% non-refundable. Every province except Prince Edward Island adds its own layer. All of it is aimed at research and labour.
Türkiye refunds half of what a software company or game studio spends on advertising, app store commissions and hosting when it sells to customers abroad, and up to 70% when those customers are in one of twenty target markets. It is paid in cash, against invoices you have already settled. Try it with your own numbers.
01What can a software company in Canada claim?
| Programme | Type | What it pays | How long it takes |
|---|---|---|---|
| SR&ED, the research and development credit | Tax credit | 35% refundable on the first CAD 6 million, 15% after that | Claimed with the corporate return |
| The provincial layer | Provincial credit | Every province except Prince Edward Island adds its own incentive | Varies by province |
02Which grants can you apply for in Canada?
1 of the 2 are competitive. You apply, you wait, and you might not get it. The upside is that the money is not tied to your tax position.
The provincial layer
Provincial creditRun by Provincial and territorial governments
Provincial credits sit on top of the federal one and are the reason studios cluster where they do.
| Coverage | All provinces except Prince Edward Island, as well as the Yukon, provide tax incentives to taxpayers carrying on research and development activitiessource |
|---|
Watch out. Rates and eligibility differ sharply between provinces, and the interactive digital media credits generally favour employees on local payroll over contractors or offshore work.
03Which credits can you claim through your tax return?
These are not competitive. If the spend qualifies and the paperwork holds up, the money is yours.
SR&ED, the research and development credit
Tax creditRun by The Canada Revenue Agency
The backbone of Canadian technology support, and refundable for smaller private companies, which matters when there is no tax to offset.
| Enhanced rate | 35% refundable annually on the first CAD 3 million of expenditure for a qualifying Canadian-controlled private corporation Recently enacted legislation raises that limit to CAD 6 million for taxation years beginning after 15 December 2024.source |
|---|---|
| Basic rate | 15% non-refundable on SR&ED expenditure, carried back three years or forward twentysource |
| Public companies | Eligibility for the enhanced 35% refundable credit was extended to eligible Canadian public corporations for taxation years beginning after 15 December 2024, subject to revenue limitssource |
| Capital costs | Eligibility of capital expenditures was restored for property acquired after 15 December 2024source |
Watch out. Refundable is the word that matters. A studio with no taxable profit still gets the cash, which is why SR&ED carries so many Canadian teams through development.
04What will none of them pay for?
All four schemes pay for work done on the product itself. None of them covers what you spend getting people to play it or buy it.
What the four routes pay for
- Research and experimental development
- Salaries of staff doing that work
- Capital expenditure again, for property acquired after 15 December 2024
- Provincial labour costs, through the provincial credits
What none of them touch
- User acquisition and paid media
- App store and platform commissions
- Hosting and infrastructure
- Trade shows and market entry
Canada is on the Turkish Ministry of Trade's target country list, so activity aimed at Canadian players is supported at the higher rate. If the commercial side of the business runs through a Turkish company, that spend comes back at 50% to 70%, paid in cash against invoices you have already settled.
| What you spend it on | Programme item | Paid back | Annual cap |
|---|---|---|---|
| Ads and player acquisition | Digital product promotion: ads & marketing (up to 10 products/yr) | 50% to 70% | 50 000 000 ₺ ≈ $1,043,841 |
| App store and platform commissions | App store & platform commissions (up to 10 products/yr) | 50% | 20 000 000 ₺ ≈ $417,537 |
| Hosting and servers | Hosting costs | 50% | 5 000 000 ₺ ≈ $104,384 |
Caps are revalued upward every year, so these figures grow with inflation rather than erode. Rates and caps come from the same file as our calculator, so the two can never disagree.
What Türkiye would pay back on your spending
Türkiye runs a government programme that refunds part of what a software company or game studio spends on reaching customers abroad. It covers advertising, app store and platform commissions, and hosting. The refund is paid in cash against invoices the company has already settled, so it does not depend on the company making a profit. The standard rate is 50%, and it rises to 70% when the customers being targeted are in one of the twenty countries on the Turkish Ministry of Trade's target list.
Put your own yearly figures in below. The rates and the annual caps come from the same file as our full calculator, and the total updates as you type.
05Questions we get asked
Does SR&ED cover ordinary game development?
Only the parts with genuine technical uncertainty. Building a game to a known design usually does not qualify, however difficult it is.
Which province is best?
It depends on your labour mix. British Columbia, Ontario and Quebec all run interactive digital media credits with different rates and rules, so it is worth modelling rather than assuming.
Does claiming in Türkiye affect SR&ED?
No. The Turkish claim is made by a separate Turkish company on its own spend, and the Canadian entity carries on claiming as before.
Why we track other countries' schemes
CyberScope Solutions is an Istanbul consultancy that manages Türkiye's IT export incentive claims for software companies and game studios. Founders ask us what they would be giving up by moving activity here, so we read the schemes they already use. That is why this page exists and why the figures on it are dated.
- Every figure is sourced. Each number links to the page it came from and carries the date we last checked it.
- We do the filing. Claims run through DYS, the ministry's own system, and we handle the evidence pack, the deadlines and the follow-up questions.
- You find out early if it is not for you. The first call is thirty minutes and we will say plainly if your spend pattern does not suit the programme.
Turn that number into money
Send us the rough shape of your spend. You get back what it is worth, what setting it up involves, and how fast the first claim can go in. Companies already operating here treat this as routine, and the six month window means the clock is running on invoices you have already paid.
- A reply from a person within one working day
- No mailing list, no drip sequence
- Thirty minutes, and you keep the numbers either way
Got it.
We will read it properly and reply within a working day. If you would rather get it over with now, pick a time that suits you.
Book a 30 minute call06Where these numbers come from
- https://taxsummaries.pwc.com/canada/corporate/tax-credits-and-incentives checked 2026-08-20