Schedule 49, Agreement Among Associated Canadian-Controlled Private Corporations to Allocate the Expenditure Limit
Schedule 49, Agreement Among Associated Canadian-Controlled Private Corporations to Allocate the Expenditure Limit
All CCPCs that are associated and have scientific research and experimental development (SR&ED) expenditures have to file Schedule 49. These corporations use this form to:
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identify all the associated corporations
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allocate the expenditure limit for the 35% ITC rate on qualifying SR&ED expenditures
For more details about the ITC, see Lines 652 and 780 on page 88.
Note
Only one of the associated or related corporations needs
to file Schedule 49 for a calendar year. However, if
Schedule 49 is not already on file when the CRA assesses
any of the returns for a tax year ending in the calendar
year of the agreement, it will ask for one.
Associated corporations with more than one tax year in a calendar year
Special rules apply to determine the expenditure limit for associated corporations that have more than one tax year ending in the same calendar year. Prorate the expenditure limit for each tax year ending in the calendar year based on the number of days in the tax year divided by 365.
Be sure that the amount you prorate for each of the tax years is equal to the amount allocated to the corporation for the first tax year ending in the calendar year.
References
Subsections 127(10.3) and 127(10.6)
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