Generous tax incentives are designed to encourage investment in research and development activities. Material costs are only permitted in the ITC calculation to the extent they are actually applied in the research and development process, as opposed to some other commercial use. in Canada.
Similar credits are also available for most provinces.
See Ontario Political Contribution Tax Credit . Foreign Tax Credit Canadian residents are taxable in Canada on world income from all sources. Income from foreign jurisdictions may also be subject to tax in the foreign jurisdiction. Commencing in 1998, for example, foreign income that is exempt from tax in the foreign jurisdiction pursuant to say, a tax treaty, may not be included in the foreign income base for purposes of the tax credit calculation. However, this income, although exempt in a foreign jurisdiction, must still be included in the taxpayer's world Tip To maximize the tax credit, consider spreading contributions over several years.