- Refundable tax credit
- Focused on supporting the interactive digital media sector
- Accepts applications each taxation year
The Ontario Interactive Digital Media Tax Credit is a refundable tax credit for labour, marketing and distribution expenditures for the creation of interactive digital media products.
Refundable tax credit of 40% of qualifying labour and marketing & distribution expenditures for companies that are creating and distributing their own products, or 35% for companies working under a fee for service arrangement.
Direct development labour, marketing and distribution expenditures for the creation of interactive digital media products.
Eligible companies must be a Canadian corporation (that is Canadian or foreign-owned), that develops an eligible product in Ontario. 25% of the total development labour to create the product must be attributable to eligible wages of employees of the qualifying corporation, while 80% of it must be attributable to eligible wages and eligible remuneration paid to individuals, personal corporations, or sole proprietorships that do not have employees.
The product must:
- Be an interactive digital media product whose primary purpose is to educate, inform, or entertain, and that achieves its primary purpose by presenting information in at least two of text, sound, or images. Types of interactive digital media products that may be eligible for the tax credit include but are not restricted to games, educational and informational products.
- Not be used primarily for interpersonal communication
- Not be used primarily to present or promote the qualifying corporation or any products they sell
Example of an OIDMTC Return
|Marketing and Distribution||$100,000|
|Total Qualified Expenditures||$500,000|
|Tax Credit (40%)||$200,000|
OIDMTC is an ongoing program that accepts applications for each taxation year.