Ontario Book Publishing Tax Credit
At a glance
- No Condition
- Open Date : November 14, 2019
- Information and cultural industries
- Government of Ontario
- Ontario Creates
Overview
Eligibility criteria
- A qualifying corporation must be a Canadian-controlled corporation primarily operating in Ontario, publish at least two books in the previous year, and have more than 50% of its taxable income allocated to Ontario.
- An eligible literary work must be written by an eligible Canadian author, have at least 90% new material, belong to specific writing categories, have a certain length, and meet other specified criteria.
Who is eligible
Qualifying corporations are eligible for the Ontario Book Publishing Tax Credit (OBPTC). These corporations must be Canadian-controlled, primarily operate a book publishing business through a permanent establishment in Ontario, file an Ontario corporate tax return, allocate more than 50% of their taxable income to Ontario, and have published at least two books in the previous year.
- Canadian-controlled corporations
- Companies primarily operating a book publishing business in Ontario
- Corporations filing an Ontario corporate tax return
- Corporations allocating more than 50% of their taxable income to Ontario
- Businesses that have published at least two books in the previous year
Eligible expenses
Eligible expenses for the Ontario Book Publishing Tax Credit (OBPTC) include pre-press, printing, and marketing expenditures related to book publishing activities. Expenses for preparing literary works for print and digital formats are also eligible.
- Pre-press costs
- Printing expenses
- Marketing expenditures
- Costs for preparing literary works for publication
Eligible projects & activities
Projects or activities eligible for the Ontario Book Publishing Tax Credit include book publishing activities by qualifying corporations, with eligible expenditures on pre-press, printing, and marketing incurred in Ontario for eligible book publishing activities.
- Book publishing activities by qualifying corporations
- Eligible expenditures on pre-press, printing, and marketing in Ontario
- Expenses related to publishing an electronic or digital version of an eligible literary work
Evaluation & selection criteria
There are evaluation and selection criteria for the Ontario Book Publishing Tax Credit (OBPTC) grant. The assessment is based on the eligibility of Ontario pre-press, printing, and marketing expenditures, as well as the publishing of electronic or digital versions of eligible literary works.
- Eligible expenditures must be incurred by a qualifying corporation primarily operating in Ontario.
- The literary work must be written by eligible Canadian authors, contain new material, and belong to eligible categories of writing.
- The book publishing company must meet specific requirements, including publishing at least two books in the previous year and having more than 50% of taxable income allocated to Ontario.
- Additional criteria include the length and format of the literary work, as well as the exclusion of certain ineligible publications.
How to apply
- Step 1: Determine Eligibility
- Ensure the corporation is Canadian-controlled and primarily operates in Ontario
- Check if at least two books were published in the previous year
- Verify that the literary work meets the eligibility criteria
- Confirm the author's eligibility
- Step 2: Gather Documentation
- Collect all eligible expenditures related to book publishing activities
- Prepare financial records and receipts
- Obtain a Certificate of Eligibility from Ontario Creates
- Step 3: Submit Application
- File an Ontario corporate tax return
- Submit the Certificate of Eligibility to the Canada Revenue Agency with supporting documents
- Step 4: Claim the Tax Credit
- Claim 30% of eligible Ontario expenditures, up to a maximum of $30,000 per book title
- Receive the credit, net of any owed federal and Ontario taxes
Ontario Book Publishing Tax Credit (OBPTC)
The Ontario Book Publishing Tax Credit (OBPTC) is a refundable tax credit that supports eligible Ontario book publishing activities by providing financial incentives to qualifying corporations. The credit is calculated as 30% of eligible Ontario expenditures, up to a maximum of $30,000 per book title.
Overview of the Ontario Book Publishing Tax Credit
The Ontario Book Publishing Tax Credit (OBPTC) is a valuable financial incentive provided by the Province of Ontario to support the book publishing industry. The credit is aimed at encouraging the production of quality literary works by offering a refundable tax credit to qualifying corporations engaged in eligible book publishing activities within the province.
To be eligible for the OBPTC, a qualifying corporation must be a Canadian-controlled corporation operating primarily through a permanent establishment in Ontario. The corporation must file an Ontario corporate tax return, allocate over 50% of its taxable income to Ontario in the year of claiming the credit, and have published at least two books in the previous year.
An eligible literary work, which can benefit from the tax credit, must meet specific criteria, including being written by eligible Canadian authors, containing mostly new material, belonging to eligible categories of writing such as fiction, non-fiction, poetry, and children's books, among others. The work must also meet certain length and format requirements to qualify for the tax credit.
Qualifying expenditures that can be claimed for the OBPTC include costs related to preparing a literary work for publication in print and digital formats, as well as production costs for printed versions of books. The credit can cover up to 30% of eligible Ontario expenditures, with a maximum tax credit of $30,000 per book title.
The administration of the OBPTC is a joint effort between Ontario Creates and the Canada Revenue Agency. The application process involves obtaining a Certificate of Eligibility from Ontario Creates and filing it with the Canada Revenue Agency along with the tax return to claim the tax credit. The amount of the credit, net of any federal and Ontario taxes owed, will be paid to the qualifying corporation.
In conclusion, the Ontario Book Publishing Tax Credit is a valuable initiative that supports and incentivizes book publishing activities in Ontario. By providing financial assistance to qualifying corporations, the credit aims to promote the production of diverse and high-quality literary works, contributing to the vibrant cultural landscape of the province.