Scientific Research and Experimental Development (SR&ED) Tax Credit for the Cannabis Industry

You can recover up to 66% of direct labour costs (for Canadian Controlled Private Companies – CCPCs).

38%SALARIES

MATERIALS

CONTRACTORS

66%

25%

20%

Small Company (CCPC)(refundable)

Large or Public Company(non-refundable)

Eligible R&D

Attempt at Technological Advancement

Technological Uncertainty

Are you Eligible?

About MNPMNP is a leading national accounting, tax and business consulting firm in Canada. We proudly serve and respond to the needs of our clients in the public, private and not-for-profit sectors. Through partner-led engagements, we provide a collaborative, cost-effective approach to doing business and personalized strategies to help organizations succeed across the country and around the world.

To maximize your SR&ED investment tax credits, please contact Jay McLean, CPA,CMA, P.Eng. MBA, Partner, National SR&ED Leader, at 519.725.7700 or jay.mcLean@mnp.ca

You likely qualify if you overcame technical uncertainties and advanced basic technology in a systematic way (not via routine engineering or trial and error). For example, you determined the specific combination of micro-nutrients, from thousands of potentials, to develop a new fertilizer blend for growing cannabis sativa in soil.

MNP Can HelpYour MNP advisor works on your behalf to:

• Identify eligible R&D projects and capture all related costs

• Develop accurate project descriptions

• Defend your claims in any subsequent audits

How Valuable Can SR&ED Be?

Systematic Approach

34%

42%

MNP.ca

0876-20

*Provincial SR&ED tax credits vary by province