Tag: SRED

Access capital without diluting ownership of your company

A particularly sensitive issue for companies.

In the current context, where traditional banking institutions are cautious and tightening access to credit, sufficient liquidity can become a particularly sensitive issue for companies, especially SMEs. So accessing capital without diluting ownership of your company becomes advantageous.

It is sometimes necessary and wise to rely on the support of investors to inject new funds into your business, particularly when banks are shying away. However, this option often results in diluting your organization’s ownership and complicating its governance structure. In contrast, financing your refundable tax credits is a simple and easy way to access capital, when you need it, that has no impact on your company’s ownership or governance. While not always an alternative to an injection of investor funds, a sound tax credit financing strategy can play an advantageous complementary role for your liquidity needs and help limit the dilution of your company’s ownership.

R&D Capital is the Canadian expert in the financing of Research and development (SRED) tax credits, e-business tax credits and multimedia tax credits. Don’t hesitate to contact us. You’ll receive fast, courteous and straightforward service, and within 10 working days you’ll know what financing is available to you. For more information, you can reach us by e-mail at pbinette@rdcapital.ca or at (514) 798-0493, ext. 222. We look forward to helping you realize your projects and ambitions.

REFUNDABLE TAX CREDITS TO SUPPORT R&D:

AN IMPORTANT LEVER FOR ECONOMIC DEVELOPMENT IN QUEBEC

The Quebec government’s latest budget included a review of tax credits for companies in the e-business and multimedia sectors. The refundable tax credit for multimedias (CTMM), which mainly benefits SMEs in the dynamic video game production sector, will be reduced from 30% to 20% over a 5-year period. Over the same period, a non-refundable tax credit, applicable only on taxes payable, will be phased in, reaching 10% within 5 years. In the e-business sector, the impact of the measures announced in Minister Girard’s last budget will be less significant, as the refundable tax credit (crédits d’impôt pour les affaires électroniques or CDAE) will be reduced from 24% to 20% within 5 years, while the non-refundable tax credit will be gradually increased from 6% to 10%.

The video game industry

La Guilde du jeu vidéo du Québec, the Quebec video game association, is concerned about this change to the refundable tax credit, which it points out will mainly affect small studios that are not yet making a profit and therefore won’t be able to benefit from the non-refundable tax credit. It often takes several years before small studios make their first profits.

The CTMM has also encouraged world-class players such as Ubisoft to set up shop in Quebec. The sector employs some 14,500 people in nearly 300 studios in different regions of Quebec. It is therefore important to maintain a competitive economic and fiscal environment that does not hinder this momentum. Many countries around the world provide substantial support for research and development, notably through generous tax credits, and this applies to the video game industry and many other sectors of the economy. As the Quebec government prepares to review its tax and financial assistance to companies, caution and vigilance will be the order of the day.

Pierre Binette, President

Who we are

R&D Capital is the Canadian expert in the financing of research and development tax credits, e-business tax credits and multimedia tax credits. Don’t hesitate to contact us. You’ll receive fast, courteous and straightforward service, and within 10 working days you’ll know what financing is available to you. For more information, you can reach us by e-mail at pbinette@rdcapital.ca or at (514) 798-0493, ext. 222. We look forward to helping you realize your projects and ambitions.

Important tax dates ahead for companies

It’s that time of year again, when companies have to be disciplined and meet a number of important tax obligations. Doing your tax homework can save you a lot of headaches, and speed up the repayment of your tax credits.

Deadline

February 29, 2024 is a deadline that you must mark in your calendar without fail, or risk incurring significant financial penalties. By this date, you’ll need to have filed and transmitted your annual Source Deductions Return (SDR), which is essential both for Revenu Québec, with its RL-1 Summary, and for Revenue Canada, with the T4 Summary.

Companies using a payroll service will need to ensure that the latter files the provincial portion, as this is not the case for all. Some services, like Ceridian (now Dayforce), do not produce the Sommaire 1-Employeur, while others, like Desjardins, do. So it’s important to ask your payroll service about this.

The same rigor is required for the filing of GST and QST returns, as well as Corporate income tax returns.

In short, the best way to limit the possibility of a tax audit, and avoid paying penalties that can sometimes be steep, is to fulfill your tax responsibilities on time. What’s more, this will give you the valuable advantage of facilitating the processing and repayment of your tax credits. Companies that make this deadline a priority demonstrate their commitment to responsible, far-sighted tax management, thereby promoting long-term financial stability.

Who we are

R&D Capital is the Canadian expert in the financing of research and development tax credits, e-business tax credits and multimedia tax credits. Do not hesitate to contact us. You’ll receive fast, courteous and straightforward service, and you’ll know what financing is available to you. For more information, you can reach us by e-mail at pbinette@rdcapital.ca or at (514) 798-0493, ext. 222. We look forward to helping you realize your projects and ambitions.

Message from the President

AN ECONOMIC ENVIRONMENT THAT DEMANDS SIMPLE, EASILY ACCESSIBLE FINANCING SOLUTIONS FOR SMES

The economic context in which we operate remains challenging for SMEs as we enter 2024. Rising interest rates, the economic slowdown in Quebec and Canada, and the cautious attitude of traditional banking institutions are all having a dampening effect on the momentum of many businesses. “It’s already hard for small business owners to navigate the complicated world of financing, but banks are more likely to approve loans and provide better loan terms to larger firms”, notes the Canadian Federation of Independent Business. 

In this environment, it becomes even more essential for SMEs to have access to alternative sources of financing to those offered by traditional banking institutions, which are simple, flexible and rapidly accessible. That’s why R&D Capital offers a wide range of tax credit financing solutions that give you access to capital that might not otherwise be available.

We understand that the availability of cash when you need it plays a key role in bringing your projects to fruition, in hiring and retaining skilled and scarce personnel, and in supporting your marketing efforts. Just because the economy is slowing down doesn’t mean that these key factors in your success are any less important. R&D Capital is here to help, even when the economy is buffeted by headwinds.

Pierre Binette, President

R&D Capital

R&D Capital is proud to provide financial support for the technology of Neurotherapy Montreal

R&D Capital is proud to provide financial support to Neurotherapy Montreal, a team dedicated to improving the brain health of children and adults.

As Marcel Marcel Mazaltarim, founder and director of this cutting-edge clinic, mentions in this short video, R&D Capital’s financial assistance directly supports the R&D work carried out by the establishment.

We wish the Neurotherapy Montreal team continued success in its valuable work!

Enjoy the video!

R&D Capital is your partner of choice for financing your tax credits, such as Multimedia, Scientific Research and Experimental Developmentcientific (SR&ED), the Development of E-Business (CDAE), and for Investment and Innovation (C3i), in addition to financing several types of federal and provincial subsidies.

For more information on our financing options, you can contact us by email at info@rdcapital.ca or at (514) 974-0493. It will be our pleasure to assist you in achieving your projects and goals.