Yukon Research and Development Tax Credit
Highlights
This program is designed for you. It offers significant tax credits that can greatly benefit your business. By investing in eligible Yukon organizations, you can receive a 25% tax credit on the amount invested. This credit can be claimed up to $25,000 per year, and any unused amounts can be carried back three years or forward seven years.
Key Benefits:
- 25% tax credit on investments in eligible Yukon organizations
- Maximum claim of $25,000 per year
- Unused credits can be carried back 3 years or forward 7 years
This program is easier to qualify for than many other financing options. It allows you to support local businesses while receiving substantial tax benefits. By participating, you can improve your cash flow and reinvest in your business, helping it grow and thrive.
Financing Details
Type of Financing: Tax Credit
Eligible Expenses:
- Investments in eligible Yukon organizations.
- Shares issued by Yukon organizations to Yukon investors.
Use of Funds:
- The funds can be used to invest in incorporated, private corporations that maintain a permanent establishment in the Yukon.
- The funds cannot be used for organizations exceeding $100 million in assets.
Repayment Terms:
- Not applicable, as this is a tax credit, not a loan.
Interest Rates:
- Not applicable, as this is a tax credit, not a loan.
Fees:
- No fees are associated with this tax credit program.
Qualifications
- Must be an incorporated, private corporation.
- Must maintain a permanent establishment in the Yukon.
- Must have its head office located in the Yukon.
- Must pay at least 25% of its salaries and wages to Yukon residents.
Must not exceed $100 million in assets.
Disqualifications:
- Businesses exceeding $100 million in assets.
Description
This program offers your business a chance to receive up to $25,000 in tax credits for investments made in eligible Yukon organizations. This can significantly reduce your tax burden and provide extra funds to reinvest in your business.
Key benefits include:
- 25% tax credit on the amount you invest in eligible Yukon organizations.
- Carry unused credits back 3 years or forward 7 years, giving you flexibility in managing your finances.
To qualify, the organization you invest in must be a private corporation based in Yukon, with its head office and a significant portion of its workforce located in the territory. This ensures that your investment supports local businesses and the Yukon economy.
This program is a valuable opportunity to reduce your taxes while supporting local businesses.
Program Steps
Gather Necessary Documentation: Prepare the following documents to complete your application:
- Proof of Yukon residency.
- Proof of age (19 years or older).
- Corporate documents showing incorporation and head office location in Yukon.
- Financial statements.
- Payroll records showing at least 25% of salaries and wages paid to Yukon residents.
- Asset statements (must not exceed $100 million).
Complete the Application Form: Obtain and fill out the Yukon Business Investment Tax Credit application form. Ensure all sections are completed accurately.
Submit the Application: Send the completed application form along with the required documents to the appropriate government office. This can usually be done online or via mail.
Wait for Confirmation: Once submitted, wait for confirmation from the government office. They will review your application to ensure all criteria are met.
Receive Tax Credit Certificate: If your application is approved, you will receive a tax credit certificate (YSBITC-1) from the Government of Yukon.
File Your Tax Return: Use the tax credit certificate when filing your corporate income tax return to claim the Business Investment Tax Credit. Ensure you include the amount shown on the YSBITC-1 form.
Track and Utilize Unused Credits: If you have any unused tax credits, remember that they can be carried back three years or forward seven years. Keep track of these for future tax filings.
