Montreal Mobile Developers and the 2012 Budget
Posted on April 5, 2012
During Canada’s federal budget last week, the government announced that they wanted to shift technology support spending from the current SR&ED tax credit system to a grant based system. They announced a reduction in the funds available for tax credits, but an increase for other investment programs.
Raymond Cabot Grant Thornton, the accounting company, offered two seminars this week in Montreal to outline what the changes would mean for companies investing in development in Quebec. These measures would also include companies developing Mobile applications in Montreal.
Globally, for smaller Montreal mobile developers, the changes can be expected to be minimal. There is a slight reduction in the amount of tax credit that can be received, related to a few percentage points.
For larger mobile developers in Montreal, the situation is different where a slightly larger percentage of tax credits will be withdrawn. In both cases, tax relief for capital investments, including servers, will be withdrawn.
The government will also make more money for venture capital funds that are directed towards research and development, both funds aimed at smaller companies and larger ones too.
Even with these changes, Canada and particularly Quebec, remain very attractive places to develop mobile applications. Costs remain lower than elsewhere in North America and the availability of a highly-educated workforce enables projects to scale. Moreover, Montreal is an attractive city for near shoring projects from the American North East due to the facility of travels between key clusters like Boston, New York and the city of Montreal.
Montreal mobile developers will remain a great choice for your business projects in the years to come!