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Foreign Firms Can Access R&D Tax Credits in Manitoba

R&D tax credits available in Manitoba can provide significant cost advantages to firms that locate their R&D activities here. Foreign firms can access these cost advantages by either outsourcing their R&D to a Manitoba company, or by conducting R&D activities in a Manitoba subsidiary.

Contract R&D

R&D tax credits available in Manitoba can reduce the cost of eligible R&D by over 50%. In combination with competitive labour costs, that means that Manitoba companies can undertake contract R&D at very competitive rates, providing a compelling reason for foreign firms to outsource their R&D activities to Manitoba firms.

R&D in a Manitoba-based subsidiary

Foreign firms may access R&D credits directly by establishing Manitoba-based subsidiaries and locating their R&D activities in those subsidiaries.

Advantages to foreign firms of locating R&D activities in Manitoba:

• Reduced after-tax cost of eligible R&D, due to tax credits
• Competitive labour rates in Manitoba