On June 7, 2021, the “What’s New – SR&ED Program” page on the Canada Revenue Agency’s (CRA) page released information on filing extensions for income tax returns and scientific research and experimental development (SR&ED) investment tax credits (ITCs) that had been extended due to COVID-19. While an extension is being granted we recommend filing on time whenever possible as not all provinces are allowing the extension, specifically British Columbia and Nova Scotia.
As part of the federal 2020 COVID-19 measures, the filing due-dates for the income tax return for tax year-ends from November 30, 2019, to February 29, 2020, were extended to September 1, 2020, which means the federal SR&ED reporting deadlines for these tax years has been extended to September 1, 2021. However, this extension does not apply to the British Columbia Scientific Research and Experimental Development Tax Credit and Nova Scotia Research and Development Tax Credit. For example, British Columbia and Nova Scotia corporations with a December 31, 2019 tax year-end should file their Forms T661, T2SCH31, T666 British Columbia (BC) Scientific Research and Experimental Development Tax Credit or T2SCH340 Nova Scotia Research and Development Tax Credit, and other relevant forms at the latest, June 30, 2021.1
The table below summarizes the announcement. We have not received information on additional provinces and will update as new information becomes available.
|Type of return||Tax Year End||SR&ED Filing Extension granted?|
|Federal||11/30/19 - 2/29/2020||Yes|
|British Columbia||11/30/19 - 2/29/2020||No|
|Nova Scotia||11/30/19 - 2/29/2020||No|
For additional information on SR&ED filing extensions for British Columbia and Nova Scotia, please see the page British Columbia Scientific Research and Experimental Development Tax Credit and Nova Scotia Research and Development Tax Credit for tax year-ends from November 30, 2019, to February 29, 2020. As the wording in British Columbia and Nova Scotia says the SR&ED reporting deadline is within 18 months of the taxation year-end, the deadline was not extended, even due to the pandemic and federal decision.
The extension does apply to federal SR&ED ITCs. We will update our readers with additional information as it becomes available. For additional resources on filing deadlines please see our posts, Updates to the SR&ED Filing Requirements Policy and Can you apply for the SR&ED credit past the filing deadline?. For additional resources on COVID funding please see our post, CEWS and SR&ED – Guidance from the CRA.
- What’s new – SR&ED Program. (2021, June 8). Canada Revenue Agency. https://www.canada.ca/en/revenue-agency/services/scientific-research-experimental-development-tax-incentive-program/whats-new-program.html ↩