Ontario Interactive Digital Media Tax Credit
The Ontario Interactive Digital Media Tax Credit (OIDMTC) is a 20% refundable tax credit available to qualifying corporations on qualifying expenditures incurred after June 30, 1998 to create interactive digital media products in Ontario.
Eligibility
A qualifying corporation is a Canadian corporation (that is Canadian or foreign-owned), that develops an eligible product at a permanent establishment in Ontario operated by it, had during the preceding taxation year (on an associated company basis) neither annual gross revenues in excess of $20 million nor total assets in excess of $10 million, and files an Ontario corporate tax return*.
Corporations that are prescribed labour-sponsored venture capital corporations under the regulations made under the Income Tax Act (Canada) and corporations that are exempt from tax or are controlled directly or indirectly by a corporation exempt from tax are not eligible for the OIDMTC.
*March 23, 2006 Ontario Budget proposed that corporations which currently meet the legislative requirements will be eligible for a 30% tax credit. A 20% tax credit has been proposed for those corporations which exceed the current asset and revenue cap.
How to Apply
A corporation is required to submit with its Ontario corporations tax return a Certificate of Eligibility from the Ontario Media Development Corporation (OMDC).
Enter the total amount of the credit on Line 200 of the tax return.
Additional Information
The Ministry of Revenue and the OMDC jointly administer this tax credit. The OMDC website has information which may assist you.
