E-Business Tax Credit | ABGi Canada

Expertises Tax Incentives E-Business Tax Credit

 

 

 

E-Business Tax Credit

E-Business Tax Credit

 

E-Business Tax Credit (CDAE) is exclusive to Quebec. It was created to encourage the development of information technology (IT) in the Province.

 

Created in 2008, and updated in 2015, this program is frequently modified to reflect evolution in the market and relevant technologies. This refundable tax credit is subject to the same control requirements as other tax credits.

 

ABGi will provide you with recommendations and support tailored to your specific needs.

    Funding

     

    The CDAE is a 30% tax credit up to a maximum of $25,000 per year per eligible employee. This credit is refundable (24% refundable, 6% non-refundable).

    Eligibility

     

    This tax credit is dedicated to companies developing innovative and high value-added activities in the IT sector (computer system design, software publishing, etc…) executed in an establishment located in Quebec.

     

    Application

     

    The claim process is complex and Investissement Québec’s eligibility criteria are very demanding. Our experts will guide you to maximize your claims.

    Management

     

    We support our clients throughout the claim process, from the request for certificates to the delivery of tax forms.

     

     

    How Long Does It Take To Receive Funding?

    The processing time for receiving the E-Business Tax Credit (CDAE – Crédit d’impôt pour le développement des affaires électroniques) can vary, from application submission to receiving the tax credit funding can typically take 6 to 12 months.

     

    Can I Use An External Consultant For Assistance?

    Yes, you can use an external consultant to assist with E-business tax credit application process. Our consultants can help with the process due to the complexity of tax credit applications.

     

    Can I Claim Both SR&ED Tax Credit and E-business tax credit?

    Yes. It is possible to claim SR&ED tax credit and E-business tax credit. However, an analysis needs to be conducted to avoid any double-dipping risk and ensure compliance with both federal and Quebec regulations.

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