Changes to the E-Business Tax Credit: What You Need To Know (Views: 3586)
Thu, 04 Feb 2016
The business sector profits greatly from IT advancements. That is why the E-business Tax Credit program exists: to support the development of software tools, which in turn improve business processes. A while back we wrote about the program and who is eligible, but changes were recently announced to the tax credit. Here is what you need to know about the updated E-Business Tax Credit structure:
What Stayed the Same
Keep in mind that the entire program was not reworked, so the following are still valid:
- Eligibility criteria has not changed (you must still have a minimum of 6 eligible employees and at least 75% of your revenues must still come from the sale of technology that improves internal business processes for clients)
- Corporations have 15 months to submit their claim to Investissement Quebec and 18 months to submit to Revenue Quebec, after their fiscal year end
What Changed
The most notable changes are:
- You can now get up to $25,000 per eligible employee with the program (increased from $20,000). The net increase, however, is in a non-refundable tax credit
- After September 30th, 2015, you can no longer claim the wages of eligible employees if their work product went towards a contract between your company and the government
- The tax credit, which was set to end in 2025, no longer has an expiration date
For all the details on the E-business Tax Credit update, contact Sahar Ansary M. Eng. of R&D Partners, a group of consultants who specialize in helping SME and large corporation obtain and maximize tax credits.
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