Yukon – SR&ED Tax Credits

The Yukon SR&ED tax credit is administered by the CRA (Canada Revenue Agency) while the department of finance is responsible for the legislation. It is refundable at a rate of 15% on eligible expenditures. An additional 5% is available on amounts paid or payable to the Yukon College.

The SR&ED tax credit is available to the corporations that have a permanent establishment in the Yukon at any time in the taxation year. It is also available to the individuals who are residents in the Yukon on the last day of the year. It includes the beneficiaries of a trust and members of a partnership for the SR&ED carried out in this province.

Eligible work and expenditures for the Yukon R&D tax credit are that same as for the federal SR&ED tax credit. The filing deadline for claiming the Yukon SR&ED credit is 12 months after the filing due date. In this territory, carryback and carry forward is not applicable.

There are reductions for eligible expenditures through government and non-government assistance. However, they are not reduced by the Yukon R&D tax credit. The Yukon R&D tax credit will reduce the federal pool of deductible SR&ED expenditures and qualified SR&ED expenditures.

In the Yukon, corporations do not have the privilege of renouncing the tax credits, either partially or fully. In filing for the tax credit, a corporation or individual has to complete the following forms:

• T2SCH442 Yukon Research and Development Tax Credit (Corporations)
• T1232 Yukon Research and Development Tax Credit (Individuals)

The legislation that is followed in the whole SR&ED tax credit program is in accordance with Section 15 of the Income Tax Act (Yukon).