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

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333 points tareqak | 1 comments | 05 Jul 25 00:24 UTC | HN request time: 0.213s | 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. Canada ◴[05 Jul 25 06:24 UTC] No.44470501[source]▶
Yeah, I never thought of it that way. Your plan sounds great, but, in practice how it works is you get paid about half of what you would get in the US. Currently less than half due to the unusual currency exchange rates.