Media Tax Credits

A tax credit for companies

that educate and entertain

What is Ontario Interactive Digital Media Tax Credit?

The OIDMTC is a refundable tax credit for Canadian corporations developing interactive digital media products whose primary purpose is to educate children under 12 or entertain the user. The program offers a credit on eligible Ontario labour expenditures and, potentially, marketing and distributing expenses between 35-40% of costs.

Are you eligible for the OIDMTC?

To be eligible for the OIDMTC, the interactive digital product must:

  • Have a primary purpose of educating children under 12 or entertaining the user;
  • Use two of text, images, or sound;
  • Be used by individuals;
  • Have 80% of the development work performed in Ontario by Ontario taxpayers;
  • Have a revenue generating stream

Your business must also have permanent establishment in Ontario.

What isn't eligible for the OIDMTC?

  • Products providing any content that is news, public affairs, opinion, commentary, advice
  • Blogs
  • Vocational / job training products
  • Databases such as real estates or recipe databases
  • Products created with the key objective of promoting products, services, or companies
  • Reference material products such as software user guides, dictionaries, and maps
  • Search engines
  • Products used primarily for interpersonal communication
  • Content aggregators 
  • Operating system software

Additional Digital Media Tax Credits

What is the Interactive Digital Media Tax Credit?

The IDMTC is a refundable tax credit for eligible Canadian corporations that create digital media products in B.C. that are created to educate, inform, or entertain individuals. Corporations can receive 17.5% of qualified labour expenditures.

Are you eligible for the IDMTC?

To be eligible for the IDMTC your product must be:
  • In digital format, made up of integrated application and data files
  • Designed to educate, inform, or entertain users
  • Used interactively by individuals
  • Developed in BC
The product must also present information in at least two of the following ways: images, sound, text. Some examples are video games, educational software, “edutainment” products, and simulators.

What isn’t eligible for the IDMTC?

  • Products designed for marketing or promotion
  • Products designed for interactive communication
  • Products that are contrary to public policy (in the opinion of the minister)
  • Games classified as “AO” or adults only by the Entertainment Software Rating Board
  • Operating system software
  • Blogs
  • Online media such as newspapers or magazines
  • Slideshows
  • Videos or video streaming applications
  • Social media products

What is the Digital Media Tax Credit?

The DMTC is a refundable tax credit for eligible Canadian corporations directly related to the development of interactive media products in Nova Scotia. Corporations can receive up to 50% of eligible labour expenditures or 25% of total expenditures made in Nova Scotia. A 5-10% geographic area bonus is available for products developed outside of the Halifax Regional Municipality.

Are you eligible for the DMTC?

To be eligible, corporations developing interactive digital media products must:
  • Be a taxable corporation in Canada
  • Have permanent establishment in Nova Scotia (e.i. fixed place of business, assets and personnel in the province)
  • The product being developed is interactive and intended to educate, entertain, or inform users (can be businesses or individuals)
  • The product must present information in at least two of the three: text, images, or sound
  • For the 10% geographic area bonus, 50% of eligible labour expenditures must be paid to employees who work out of a permanent establishment within the qualifying area

What isn’t eligible for DMTC?

  • Application software such as database, spreadsheet, word processing
  • Operating system software
  • Products developed for interpersonal communications such as cell phone and email software
  • Products that are discriminatory or pornographic
  • Products used to market or promote a corporation or organization

What is the Production of Multimedia Titles Tax Credit?

Designed to encourage the production of multimedia titles in Québec, the Production of Multimedia Titles is a refundable tax credit program in which eligible corporations can receive up to 37.5% of eligible labour expenditures.

Are you eligible?

To be eligible, corporations must have an establishment in Québec and produce eligible multimedia titles which are:
  • Published on an electronic medium
  • Controlled by software that allows interaction
  • Contain a substantial amount of three out of four types of information: text, still images, animated images, and sound (note: video images are considered only one component)
  • Digital animation films associated with an eligible multimedia title produced by your corporation are also eligible, however, the labour expenditure related to the main project must exceed at least $1 million

What is eligible production work?

Work carried out for the purpose of completing the production stages of the title, commencing with the design stage, and the work indefinitely thereafter.

Top 3 success factors of DMTC Claim

We follow a clear methodology, built on tested know-how and in full compliance with current legislation. We do the heavy lifting for you!

01

Complete, contemporaneous, and relevant documentation

WE PROVIDE: Assignment of a dedicated Project Manager who will work with you

02

Subject matter expert availability

WE PROVIDE: Assistance in understanding digital media tax credit eligibility and retrieval of all supporting documents

03

Access to the product as it existed at the time of completion

WE PROVIDE: Comprehensive backups of the product(s) inline with the individual digital media tax credit requirements

Film & TV Tax Credits

What is the CPTC?

The Canadian Film or Video Production Tax Credit (CPTC) is jointly administered by the Canadian Audio-Visual Certification Office (CAVCO) and the Canada Revenue Agency (CRA). Eligible products can receive a fully refundable tax credit, available at a rate of 25% of the qualified labour expenditure. The CPTC encourages the development of an active independent production sector in Canada as well as Canadian film and television programming.

Who is eligible for the CPTC?

Taxable, Canadian-controlled production companies with a permanent establishment in Canada and primarily carry on activities of eligible Canadian film or video productions. A production must be a linear film or video production that’s non-interactive. Voting outside of the context is fine, and virtual reality (VR) productions can be eligible, as long as the storyline progresses in a linear way without the interaction of the viewer.

What isn’t eligible for the CPTC?

  • news, public affairs, current events, weather or market reports
  • a game, questionnaire or contest production (unless directed primarily for minors)
  • sports, event, or activity productions
  • award shows and galas
  • productions that solicit funds
  • reality TV
  • pornography
  • advertising
  • productions that are for industrial, institutional, or corporate purposes
  • a production containing all or a substantial amount of stock footage (that isn’t a documentary)
  • video games, apps, websites and similar products

What is the PSTC?

The Film or Video Production Services Tax Credit (PSTC) is jointly administered by the Canadian Audio-Visual Certification Office (CAVCO) and the Canada Revenue Agency (CRA). Eligible companies can receive tax credits at a rate of 16% of qualified labour expenditures. The PSTC is intended to strengthen the industry, secure investment, and enhance Canada as a location of choice for film and video productions.

Who can apply for PSTC?

  • Taxable, Canadian- or foreign-owned companies, with more than half of their activities dedicated to the permanent establishment of a film or video production business in Canada (or a film or video production services business);
  • and the owner of the copyright in the eligible production throughout the period in which it’s produced in Canada (or contracted directly with the copyright owner to provide production services).

 

What isn’t eligible for PSTC?

  • news, public affairs, current events, weather or market reports
  • a game, questionnaire or contest production 
  • talk shows
  • sports, event, or activity productions
  • award shows and galas
  • productions that solicit funds
  • reality TV
  • pornography
  • advertising
  • productions that are for industrial, institutional, or corporate purposes
  • video games, apps, websites and similar products

What is the OFTTC?

The OFTTC is a refundable tax credit for eligible, Ontario-based corporations in the film & television production industry. Corporations can receive up to 35-40% of eligible labour expenditures for productions. Regional bonuses are also available for productions that are shot and animation productions if the majority of the filming / work takes place outside of the Greater Toronto Area.

Who can apply for the OFTTC?

A corporation must be Canadian-controlled, have permanent establishment in Ontario, and file an Ontario corporate tax return in order to be considered a qualified company. Also, the individual producer must be an Ontario resident for tax purposes at the end of the previous two calendar years prior to commencement of principal photography.

Productions that are eligible include:

  • Six Canadian content points (unless an official treaty co-production)
  • Is predominantly shot and posted in Ontario (some exceptions such as documentaries, international treaty co-productions, and interprovincial co-productions)
  • 75% of total final costs are on Ontario expenditures
  • Is suitable for a 30-minute time slot if for television (with the exception of children’s programming)
  • Has an agreement with an Ontario distributor or Canadian broadcaster to be shown in the province within two years of completion
  • As with the point above, the broadcast must occur between 7 pm and 11 pm with the exception of children’s programming

 

What isn’t eligible for the OFTTC?

  • Talk shows
  • Game shows
  • Current affairs
  • Sports shows
  • Awards shows
  • Fundraising shows
  • Reality television

What is the OPSTC?

The OPSTC is a refundable tax credit for eligible, Ontario-based Canadian- or foreign-controlled corporations in the film & television production industry. Corporations can receive up to 21.5% of eligible labour expenditures for productions. Requirements for this tax credit are generally “harmonized” with the federal Film or Video Production Services Tax Credit administered by Canadian Audio-Visual Certification Office (CAVCO) and the Canada Revenue Agency (CRA).

Who can apply for the OPSTC?

To be qualified, a corporation must: 

  • Be Canadian- or foreign-owned
  • carry on a film or video production or production services business at a permanent establishment in Ontario 
  • file an Ontario corporate tax return
  • and own the copyright of the qualifying production or contracts directly with the copyright owner 


Productions that are eligible include:

  • Production costs exceed $1 million CAD, (with the exception of series with two or more episodes or a pilot for such series)
  • In the case of a series, the run time is less than thirty minutes and costs exceed $100,000 CAD
  • If the episode has a longer running time the costs must exceed $200,000 CAD

 

What isn’t eligible for the OPSTC?

  • Talk shows
  • Game, questionnaire, or contest productions
  • Current affairs
  • Sports or activity shows
  • Awards or gala productions
  • A production that solicits funds
  • Reality television
  • Pornography
  • Advertising
  • Productions produced for industrial, corporate, or institutional purposes
  • Productions that are contrary to public policy
  • Productions that receive Ontario Film and Television Tax Credit (OFTTC)

What is the OCASE?

The OCASE is a refundable tax credit for eligible, Ontario-based Canadian- or foreign-controlled corporations in the film & television production industry directly related to digital animation and digital visual effects. Corporations can receive up to 18% of eligible labour expenditures for productions. The OCASE tax credit is claimed in addition to the Ontario Film and Television Tax Credit (OFTTC) or the Ontario Production Services Tax Credit (OPSTC).

Who can apply for the OCASE?

To be qualified, a corporation must: 

  • Be Canadian or foreign-owned
  • carry on a film or video production or production services business at a permanent establishment in Ontario 
  • file an Ontario corporate tax return


Animation or visual effects houses, post-production houses, and film and television production companies that perform eligible computer animation and special effects activities are included as qualifying corporations.

Activities that are eligible include:

  • Audio effects
  • In-camera effects
  • Credit rolls
  • Subtitles
  • Animation and visual effects that are mostly or entirely created by editing activities or for use in promotional materials for an eligible production

 

What computer animation and special effects activities are eligible for OCASE?

  • Designing
  • Modelling
  • Rendering
  • Lighting
  • Painting
  • Animating
  • Composing


Note that activities considered scientific research and experimental development are not included.

BIG is joining forces with RSM Canada on Dec. 16, 2021

As part of RSM Canada, we’ll take the next step in our growth strategy, continuing to help our clients benefit from the credits and incentives services we offer, while enhancing our offerings with additional tax, audit and consulting services and resources.