Ontario Interactive Digital Media Tax Credit (OIDMTC)

• Certificates of eligibility for all media credits being claimed.
• Required schedules.
• T2 Corporation Income Tax Return.

Who is eligible?

• Canadian corporations, including Canadian or foreign-controlled corporations.
• Corporations with a permanent establishment in Ontario where the product is developed.
• Ontario-based digital game companies applying under section 93.1 or section 93.2.

Who is not eligible

• Corporations exempt from tax under Part III of the Taxation Act, 2007 (Ontario).
• Corporations controlled directly or indirectly by one or more corporations whose taxable income was exempt from tax under section 57 of the Corporations Tax Act (Ontario) or Part III of the Taxation Act, 2007 (Ontario).
• Prescribed labour-sponsored venture capital corporations.
• Corporations claiming the Ontario computer animation and special effects tax credit, the Ontario film and television tax credit, or the Ontario production services tax credit for the same expenditure for any tax year.

Eligible expenses

• Ontario salaries and wages incurred in a tax year and directly attributable to the eligible product, paid no later than 60 days after the end of the tax year.
• Eligible remuneration paid to arm's length individuals who are not employees, other taxable Canadian corporations, and partnerships for services directly attributable to the eligible product.
• Marketing and distribution expenditures for non-specified products, incurred in the 24-month period before completion and the 12 months after completion, up to $100,000 per eligible product for all tax years.

• Apply online to Ontario Creates for a certificate of eligibility within 18 months of the end of the tax year in which development of the eligible product was completed.
• File the certificate of eligibility with the CRA together with your corporate tax return to claim the credit.

• If the product or digital game is eligible, Ontario Creates will issue a certificate of eligibility indicating the estimated amount of the tax credit.
• The CRA processes all T2 returns, conducts audit reviews of all refundable Ontario tax credits, and sends assessments and reassessments.
• The CRA will not begin to process the media tax credit claim until it receives all required documentation.
• The CRA will process both federal and Ontario claims together and issue one combined refund.

• The credit is jointly administered by Ontario Creates and the CRA.
• Only one certificate of eligibility is issued for all eligible products or digital games for the tax year.
• Specialized digital game corporations may file an annual application rather than apply separately for each product they complete.