Gaming on the West Coast
British Columbia Interactive Digital Media Tax Credit
Written by:
Samantha Hingley, Senior Client Manager.
The British Columbia Interactive Digital Media Tax Credit (BCIDMTC) is a refundable tax credit that supports the development of interactive digital media in BC. The credit is equal to 17.5% of eligible salaries and wages incurred by a qualified corporation for the development of interactive digital media.
The credit only applies to salaries and wages that are:
- Directly related to eligible interactive digital media development
- Incurred by the eligible corporation in a taxation year between August 31, 2010 and September 1, 2015
- Paid to individuals residing in BC on December 31 of the year preceding the taxation year for which the credit is being claimed
Eligible interactive digital media products must be developed in BC and must be designed for the purpose of educating, informing, or entertaining the user. The digital media product must present information using a combination of text, sounds, and/or images. The digital media product must be designed to be used interactively by individuals.
In order to be eligible for the BCIDMTC, a corporation must be:
- Registered and permanently established in BC during the taxation year
- A taxable Canadian corporation during the taxation year
- In the primary business of developing interactive digital media products or providing eligible activities to a BC corporation whose primary business is the development of interactive digital media products
- Able to provide eligible salaries and wages that are cumulatively greater than $100,000 in the taxation year
- Able to pass the “Principal Business Test”, which confirms that the corporation is a viable business operating in BC and engaged in the development of interactive digital media
In order to receive the BCIDMTC, a business must file a claim with the Canada Revenue Agency (CRA) within 18 months of the end of the taxation year for which the credit is being claimed.
