In today's global world, there is a battle for talent and minds. Companies frequently seek to leverage Canada's strong talent and human capital to execute their Research and Development (R&D) business plans.
Why is Canada such a great opportunity for companies to do R&D?
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World-class talent pipeline: Canada develops exceptional engineers and scientists through renowned universities, colleges, and technical schools.
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Access to global expertise: The country attracts top international talent through progressive immigration policies like the Global Talent Stream, which expedites hiring of technical professionals such as programmers and engineers.
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Generous government support: Canada offers substantial tax credits, incentives, grants, and partnership opportunities across all government levels for early-stage technology companies, significantly reducing R&D costs and creating competitive advantages.
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Streamlined operations: Legal and tax structures facilitate relatively easy setup for foreign companies through experienced service providers well-versed in managing inbound R&D operations.
Major Government Programs
Scientific Research and Experimental Development (SR&ED)
This $4 billion program returns cash to companies for eligible R&D expenses. Organizations can receive cash refunds ranging from 30% to 65% of labour and contractor costs.
IRAP
Supporting companies developing technology with core intellectual property, this program provides between $50,000 to $200,000 in grants toward engineering costs.
MITACS
This initiative pairs graduate students with private companies to address challenging problems and conduct research.
Real-World Impact
A small R&D company with five engineers spending approximately $500,000 annually could receive $100,000 to $300,000 through SR&ED, plus significant salary recovery through IRAP. It is not uncommon for small tech companies in Canada to have all their R&D costs covered through these programs.
ENTAX specializes in helping technology companies access these tax credits and incentives across industries including clean-tech, agri-food, advanced manufacturing, and software development.