• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 12/5/2013

Canada - R&D tax credit rate reduction beginning in 2014 

December 5: Research and development (R&D) companies in Canada eligible for tax credits under the federal government’s scientific research and experimental development (SR&ED) program may want to incur upcoming expenditures before the end of 2013 because the general SR&ED tax credit rate will be reduced to 15% (from 20%) starting in 2014.

Read a December 2013 report [PDF 51 KB] prepared by the KPMG member firm in Canada: Make Last-Minute R&D Purchases Before 2014

New form to claim SR&ED tax credits

To claim SR&ED tax credits in 2014, companies must use a new version of Form T661, Scientific Research and Experimental Development (SR&ED) Expenditures Claim. The revised T661(13) form reflects changes that are effective 1 January 2014.

The new T661(13) (released on 31 October 2013) can be used as of that date, though the Canada Revenue Agency (CRA) will accept the prior version of the form (number T661(12)) until 31 December 2013.

Beginning 1 January 2014, the CRA will accept only the new version of the form (number T661(13)) for all tax years.

Read TaxNewsFlash-Americas: Canada - New SR&ED form for research expenses

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