This multiple copy form allows you to allocate the expenditure limit (maximum: $3,000,000) between the associated corporations for each of the following tax credits: tax credit for salaries and wages (R&D) (Jump Code: 10297), the tax credit for university research or research carried out by a public research centre or a research consortium (Jump Code: 102986), the tax credit for fees and dues paid to a research consortium (Jump Code: 10298903), the tax credit for private partnership pre-competitive research (Jump Code: 10298161). A $3,000,000 expenditure limit must be allocated between the associated corporations for each research and development tax credit, and the allocation of this limit can differ for each agreement.
You must ensure that you complete a copy of Form RD-1029.7.8 for each research and development tax credit that the corporation is claiming. The name of the tax credit covered by Form RD-1029.7.8 displays at the end of the title of the form as well as on line 10 to allow you to easily identify the copy or copies to complete. The fields in Parts 2 and 3 of each copy of the form are completed automatically using the information provided on each tax credit in Section “Québec – Research and development tax credits” of Schedule 9 WORKCHART, Related and Associated Corporations Workchart (Jump Code: 9 WORKCHART).
In order for a corporation to be considered as being part of the group of associated corporations for the research and development tax credits, it must not be controlled, directly or indirectly, in any manner whatever by one or more persons not resident in Canada. To indicate that the corporation is part of the group of associated corporations, select the box The corporation is associated with other corporations for the purpose of research and development tax credits., located in Section “Québec – Research and development tax credits” of Schedule 9 WORKCHART. The status of this check box (selected or cleared) will be applied to each check box in subsections relating to Québec research and development tax credits, to indicate if the corporation is associated. This does not mean that the corporation is claiming all of the tax credits.
Tip: For more information on the T2 Data Connection, please consult the guide T2 Data Connection guide, available in the Professional Centre.
Tax Assistance for Scientific Research and Experimental Development
Guide de la déclaration de revenus des sociétés (available in French only)