Digital Media Tax Credits
What is a Digital Media tax credit?
Digital Media Tax Credits are refundable tax credit for corporations developing interactive digital media products.
This tax credit can be claimed together with SR&ED tax credits but there are rules and best practices on how to claim both tax credits to maximize the overall benefit.
Digital Media tax credit rules differ between provinces but typically you can claim labour costs and fee-for-service costs over a 3-year period prior to release of the product. Eligible marketing and distribution expenses incurred 24 months prior to the completion of the product and 12 months following the completion of the product can also be claimed for certain products.
What businesses are eligible for Digital Media Tax Credit?
To be eligible for provincial Digital Media Tax Credit, the qualifying corporation must have developed an interactive digital media product with the main intent to educate, inform or entertain the user (i.e. video games, e-learning programs, informational products).
Corporations need to be established and operated within the province in which you are filing and majority of the development work needs to be performed within the province to claim this tax credit.
What does it cost to file for Digital tax credits?
A small administrative fee applies to file for Digital Media Tax Credit but varies province-to-province.
The fee to FundRight only applies when you are awarded your tax credits. No up-front fees!
Process starts with a free assessment to determine if your business qualifies. After that, we do all the work - from claim strategy, collection of documentation, costing and submission of all paperwork with the provincial agency followed by submission to CRA and perform any audit support – until you are awarded your Digital Media tax credits!
We stay engaged throughout the year to ensure we can provide you with claim guidance and support along the way. Call us today and we can walk you through the process.
