The Saskatchewan Research and Development (R&D) Tax Credit is designed to encourage private-sector R&D investment in Saskatchewan. It is available in respect to qualifying R&D expenditures incurred by corporations in Saskatchewan.
- Qualifying R&D expenditures by Saskatchewan Canadian-controlled private corporations (CCPCs) will be eligible for a 10% refundable R&D tax credit for the first $1 million annual qualifying expenditures made on or after April 1, 2017;
- Qualifying R&D expenditures in excess of the annual limit, as well as qualifying expenditures by other corporations are eligible for a 10% non-refundable R&D Tax Credit;
- The total refundable and non-refundable R&D Tax Credits that may be claimed by a corporation will be limited to $1 million per year;
- Tax Credit legislation can be found in Section 63.4 of The Income Tax Act, 2000.
To claim this tax credit, you will need to complete Schedule 403, which can be obtained from the Canada Revenue Agency (CRA). Submit this schedule to CRA when you file annual Saskatchewan corporate income tax return.