Whats a Research Oriented Investment Fund (ROIF)?
The Government of Ontario has demonstrated its commitment to research and development through the provision of an additional tax credit to labour-sponsored venture capital investment funds that qualify as ROIFs. To qualify as a ROIF, a labour-sponsored fund must hold at least 50% of its investments in businesses that, generally, incur at least 50% of their expenses as research and experimental development. Ontario resident purchasers of Class A Shares of the Fund will qualify for an additional five per cent non-refundable provincial tax credit, giving these purchasers a total provincial tax credit of 20 per cent to a maximum of $1,000 per year based on an annual investment of $5,000.
