E-Business Tax Credit
Overview
The Tax Credit for the Development of E-Business, commonly referred to as “CDAE” (its French-language abbreviation), was introduced in Quebec to provide financial assistance to specialized corporations that carry on innovative, high-value-added activities in the information technology (IT) sector, primarily in the fields of computer system design and software publishing.
What can you expect to receive?
The tax credit is equal to 30% (24% refundable and 6% non-refundable) of each eligible employee’s salary, up to a maximum annual salary of $83,333. The total amount of tax credit can therefore not exceed $25,000 per eligible employee ($20,000 refundable and $5,000 non-refundable), calculated on an annual basis.
Are you eligible?
Your company may be eligible for the CDAE if the activities it carries out are primarily in the fields of information system design or software publishing and they are carried out in an establishment in Québec. At least 75% of your company’s gross revenue must be derived from activities in the IT sector, as outlined here.
Additionally, your company must maintain throughout a given taxation year, a minimum of six employees holding a full-time job (at least 26 hours of work per week), who should devote minimum 75% of their time to carrying out, supervising or directly supporting the eligible IT activities.
Combining credits: the most advantageous choice
Along with the E-Business tax credit program (CDAE), there are other programs that can help you develop your company: SR&ED, Multimedia Tax Credit, Design Tax Credit.
Call us today to find out what is the most advantageous strategy to maximize your benefits.
