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Comment augmenter votre productivité et obtenir un crédit d’impôt?

How to increase your productivity and get a tax credit?

May 25, 2016By Véronique Laforest
Categorie:

You recently integrated information technologies (IT) into your SME? That's great! The provincial government encourages this initiative with a 20% tax credit reimbursement for IT integration if you are the owner of a Québec-based small or medium business operating in one of the following sectors:

  • Manufacturing
  • Primary
  • Retail trade
  • Wholesale trade

Why implement this measure?

Mainly to make Québec more competitive in the global arena. Since it is harder and harder to compete with countries where salaries are lower, we need to be creative and innovative to distinguish ourselves.

How? By optimizing organizations' business processes to make their operations management more efficient, helping them open new markets and ensuring they make the increasingly essential turn toward technology.

We are thus going from an industrial revolution to a digital revolution, and anyone who wishes to remain competitive must keep up with the technological changes.

If we take the wholesale trade sector, for example, there is no doubt that the business model has changed. You can be at home in your living room, and still manage most transactions related to your organization with efficient management software.

What are the eligible expenses for this tax credit?

Usage rights purchase, rent or acquisition for the following items along with the supply of services* required for their development:

  • Enterprise resource planning (ERP) software or open-source management software.
    This software helps you manage all your business functions and operational processes. For example, this could include the management of your human resources, general accounts and finance, sales, deliveries, supplies and e-commerce;
  • Customer relationship management software.
    This software centralizes communications among an organization and its clients through multiple communication channels.
  • Supply chain management (SCM) software.
    This software helps manage all organizational operations involved in the production of products or services: supply, planning, manufacturing, storage, financial transactions, quality control, etc.

*Services offered include the staff training to use, implement, configure, personalize and develop the software.

How to apply?

  1. First, you need to submit a preliminary analysis to Investissement Québec describing your information technology needs;
  2. Your organization must have an arm's length relationship with the software supply company offering the customized IT tool and related services;
  3. Prior to beginning your project, your file must be approved by Investissement Québec;
  4. Once the project is approved, you can proceed with the software package purchase, configuration, integration and staff training, when required.

What you need to know about the tax credit

  • Usage rights purchase, rent or acquisition for management software must be carried out before January 1, 2020.
  • This fee must be deducted from all governmental or non-governmental aid, benefits or advantages related to this fee.
  • Because the credit was 25% in the past, the refundable limit has decreased from $62,500 to $50,000 for each organization.
  • This credit applies to organizations whose annual capital is less than $50M.
  • At least half of their income must come from one of the following eligible sectors: manufacturing, primary, wholesale trade or retail trade (refer to the Canada's NAICS Codes).

IT at the service of your SME

Information technologies are available to improve your efficiency, increase your profits and make you save time: you will do more with the same or fewer resources.

"Doing more" often means going from the local or regional market to the international one. This also means your communication and management processes must be consistent with international market requirements and fit with their processes as well.

Here is a tangible example from Nmédia: an electronic billboard for the Fédération des producteurs forestiers du Québec. The site enables entry from timber deliveries, viewing the lots entered and transportation management in just a few clicks. This project uses advanced geo-tracking technology as it allows itinerary searches for a large area.

Because the whole network is more efficient and productive, it can open new markets.

Here is another example that can apply to the retail and wholesale trade sectors: Altitude3. This is a unique platform developed by Nmédia. See what it can do!

Information technologies can take many forms within your business:

  • Online store
  • Interactive software that helps analyze and forecast sales along with managing schedules and employee salaries
  • Secure account management software with a client portal: purchases, supplies, transportation, account statements, order tracking, etc.

For example, if you own a wholesale trade business, you could offer your clients the opportunity of opening an online account to become a distributor/retailer. Each type of account could allow different actions thanks to management software. Everything is possible, you just need to throw yourself into it!

The benefits of a software package

  • Configurable and customizable, thus unique to your organization
  • Designed for your business
  • Develops with your business
  • Improves your client relationships
  • Makes you more efficient and competitive

Is your business eligible for this tax credit? See all details of this measure and discover if you qualify.