If you’ve developed an interactive website, mobile application or any digital media product in Ontario, you’re in luck! With the Ontario Interactive Digital Media Tax Credit (“Digital Media Tax Credit”), you can recover up to 40% of your eligible labour expenses and up to $100,000 of your marketing and distribution expenses. This Digital Media Tax Credit can be a perfect fit for companies whose work may not qualify for the SR&ED (“Scientific Research & Experimental Development”) program.
As with anything else in life, there is a catch with this tax tip: you have to apply for the Digital Media Tax Credit. While this may sound simple, the application is not automatic. In fact, the application process includes eighteen separate deliverables which serve to establish whether or not you meet the detailed criteria used by the Ontario Media Development Corporation (OMDC), to determine your eligibility for the Digital Media Tax Credit.
While some of the deliverables are simple to prepare, others may be quite challenging. In all cases it is crucial to plan ahead. For your reference, we’ve provided a few suggestions that may help ease the application process for the Digital Media Tax Credit.