Tax Credits – Interactive Digital Media Tax Credit

The BC Interactive Digital Media Tax Credit (IDMTC) Program provides a refundable 17.5% tax credit on eligible salary and wages incurred by eligible corporations to develop interactive digital media products in British Columbia after August 31, 2010 and before September 1, 2015.

An interactive digital media product means an interactive product designed for use by an individual, the primary purpose of which is to educate, inform or entertain, and must include at least two of the following forms: text, sound and images.

Budget 2012 has amended the Interactive Digital Media Tax Credit Regulation to clarify that cutscene productions are eligible activities for the purpose of claiming the Interactive Digital Media Tax Credit, provided all other requirements of the credit are met.

Generally, cutscenes are non-interactive animated or live action scenes included in a video game to provide storyline, character development or context.

Registration

A corporation must register with the Ministry of Finance for each taxation year for which it wants to claim the IDMTC.

A completed form FIN 568, Interactive Digital Media Tax Credit Application for Registration, must be submitted with supporting documents and the application fee to:

Information on how to complete the Interactive Digital Media Tax Credit Application for Registration (FIN 568) form is available here .

To ensure confidentiality, we require a signed form FIN 570, Authorization for the Interactive Digital Media Tax Credit Registration, before we will discuss any matter with the applicant corporation's representative.

For more information on the IDMTC program please see the Frequently Asked Questions.

Claiming the credit

To claim the credit, complete form Schedule 429, British Columbia Interactive Digital Media Tax Credit and file along with a T2 Corporation Income Tax Return to the Canada Revenue Agency (CRA).

The credit must be claimed no later than 18 months after the end of the tax year in which the eligible salaries and wages are incurred.

The credit is fully refundable, but must first be applied against total income tax payable. There are no carry-back or carry-forward provisions.

Legislation

Please see Part 10 of the British Columbia Income Tax Act and the Interactive Digital Media Tax Credit Regulation.

Contact Us

For more information on the IDMTC: