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OBBB signed: Reinstates immediate expensing for U.S.-based R&D

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336 points tareqak | 1 comments | 05 Jul 25 00:24 UTC | HN request time: 0.239s | source
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ttul ◴[05 Jul 25 04:21 UTC] No.44470047[source]▶
Meanwhile, in Canada, not only can you expense R&D, but there is a cashable tax refund that will give you back about 60% of your developers’ salaries…
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anovikov ◴[05 Jul 25 06:04 UTC] No.44470416[source]▶
So it means that indirectly, developers' salaries are not a taxable income in Canada if they are working on R&D? Meaning, they do pay taxes on their income, but their employer gets those taxes back, so if tax is 60%, the employer could pay 250% of what they'd pay otherwise, get 150% back, then the developer pays 150% of taxes, and gets 100%, so in effect the salary is tax-free. Is that what you meant to say?

If so, it sounds almost too good to be true. Why aren't all startups in Canada?

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1. nickff ◴[05 Jul 25 06:08 UTC] No.44470443[source]▶
There are many limits on SR&ED, and the reporting/auditing process is burdensome. Canada also suffers from a variety of other inconveniences, mostly related to its dependence on resource extraction-related industries.