Overview of the Development of E-Business & Multimedia Tax Credits
In Quebec, the refundable Tax Credit for the Development of E-business (TCDE) and the Tax Credit for the Production of Multimedia Titles are administered by Invest Quebec. The TCDE incentive consists of a tax credit equal to 30% of the eligible salaries paid by an eligible corporation. As well, the Tax Credit for the Production of Multimedia Titles, typically used for game development, can reach up to 37.5% of the eligible expenses.
In Ontario, the Ontario Interactive Digital Media Tax Credit (OIDMTC) is set up to aid in game development and is managed by the Ontario Media Development Corporation. It consists of a tax credit of up to 40% of the eligible expenditures incurred by an admissible Ontario business.
Similar programs also exist in British Columbia, Manitoba, Nova Scotia, and Prince Edward Island; and other significant government incentives may also be available for these types of expenditures.
Are you eligible?
In a nutshell, corporations in Quebec that are developing e-business software (e.g. management software, transactional websites, or other) may be eligible for the TCDE. Corporations in Canada that are developing highly interactive digital media products (such as online games, e-learning applications) may be eligible for a refundable tax credit.
What Can You Expect to Receive?
With the TCDE, you could recover 30% of your salary expenses and up to $25,000 per employee. Leveraging the digital media tax credits, you could recover up to 37.5% of your interactive digital media development costs in Quebec and up to 40% of the costs in Ontario in the form of a refund.
“R&D Partners was very efficient and ensured we maximized our complex claims. They were also very helpful in dealing with our auditors and tax authorities – allowing us to focus on our business.”
“Their level of service has been outstanding over the last five years. They led us through every step of the process from properly setting up the company in Canada, to implementing R&D best practices; identifying and applying for tax credit and grants, and successfully taking us through audits. I am impressed with R&D Partners; we do really consider them as our partners.”