CanadaChecked 2026-08-20
What is SR&ED?
SR&ED is Canada's Scientific Research and Experimental Development programme, the federal backbone of Canadian technology support.
| Rates | 35% refundable annually on the first CAD 3 million of expenditure for a qualifying Canadian-controlled private corporation, raised to CAD 6 million for taxation years beginning after 15 December 2024, and 15% non-refundable otherwise source |
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What it means in practice
Refundable is the word that matters. A studio with no taxable profit still receives cash, which is why SR&ED carries so many Canadian teams through development. Provincial credits sit on top and differ sharply, which is the main reason Canadian studios cluster in British Columbia, Ontario and Quebec rather than spreading evenly.
Who it applies to
Canadian companies carrying out work with genuine technical uncertainty. Ordinary game development to a known design usually does not qualify.
Working out what a Turkish company would claim on the same spend? Put your numbers in the calculator.
Source
- https://taxsummaries.pwc.com/canada/corporate/tax-credits-and-incentives checked 2026-08-20