Scientific research is a given in the pharmaceutical industry in Canada. Since the outbreak of the COVID-19 virus across the world last year, we have seen the pharmaceutical industry take the lead in containing the pandemic and also in highlighting the role of the industry in preventing future pandemics.
The development of drugs and vaccines normally requires years of research and approval from health authorities before they can be put on the market.
Throughout the development of a pharmaceutical product, costs are a big burden for companies, as there is no guarantee of success at the end of the research. This is shown in the development of vaccines to overcome the pandemic. Thus, the SR&ED program will allow pharmaceutical companies to recover tax credit, as most of the research and development activities qualify. The pharmaceutical industry is always looking for government incentives to help fund its R&D activities.
On the other hand, costs can increase very rapidly as research and development activities proceed, and this can be a signal to the government, which carefully monitors all eligible expenses (salaries, materials consumed, and subcontracting) when claiming SR&ED. Therefore, it is important to work methodically in order to analyze every single expense in an R&D project.
To know your eligibility for your pharma project, contact our team today!