SR&ED Arbitrage

BC 2026 Rules

Evaluate the financial net benefit of owner salary withdrawals against SR&ED tax refunds.

Simulation Parameters

$150,000
$50k $186.5k Cap $220k
75%
70% Min 72.5% 75% Max
Quick Presets:

Detailed Calculations

Eligible Base Salary: $150,000
Salary is fully eligible (below the $186,500 specified limit cap).
Net SR&ED Refund: $70,622
Calculated as: Base × Allocation × 1.55 (Proxy) × 45% (CCPC Rate) × 90% (Net of Fees)
Personal Income Tax (BC): $41,136
Net Arbitrage Surplus

+$29,486

Net Gain

Withdrawing a salary of $150,000 yields a net advantage of $29,486. The SR&ED refund exceeds the personal taxes paid.

Arbitrage Comparison

Personal Taxes Paid $41,136
27.4% of salary
Net SR&ED Refund Gained $70,622
47.1% of salary

Arbitrage Curve ($50k - $220k)

Tax SR&ED Surplus
$50,000 YMPE Cap $220,000
Optimal Arbitrage Zone
Optimal Range: $181,760 to $186,500 Max Surplus: $32,055