Contents

1. Salary vs Dividends

Are you a co-founder who is technical?

Are you involved in the technical development efforts?

Whether you are coding hands-on or supervising, and reviewing work done

Your time spent could be eligible for SR&ED.

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Don’t pay yourself in dividends - you cannot claim it.

Draw a salary instead.

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2. Hire Local

Make strategic hiring decisions.

For staff that will engage in SR&ED eligible work, hire local.

i.e., hire Canadian tax residents

Anyone else will not be eligible

Use SR&ED to offset their potentially higher salaries

By Tim Mossholder

Draw from remote candidates or contractors for other non-SR&ED eligible areas like

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For SR&ED eligible work, hire Canadian tax residents or Canadian corps (sub-contracts)

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3. Salary > Contract Payment

Assume Alice works at your business and does SR&ED eligible research.

Alice is a contractor in Ontario whom you pay $\$100K$.