Interactive Digital Media Tax Credit

What is the Interactive Digital Media Tax Credit (SDTC)?

A IDMTC credit is calculated on eligible salary and wages incurred in the tax year and ranges from 10% to 40% depending on the province. Applicants must conduct development relevant to the interests of the province in which the IDMTC credit is being applied for.  For example, in British Columbia, the IDMTC focuses on the following sectors(5):

  • Video games
  • Educational software
  • Edutainment products
  • Simulators

 

The British Columbia DMTC Program, which was scheduled to end August 31, 2018 has been extended for another five (5) years to August 31, 2023.

The qualification process is similar to SR&ED except that companies need to demonstrate their applicability to the inductor sector of interest (i.e., one of the four areas of interest by British Columbia as above).  The time period to receive the funding for DMTC credit’s is identical to SR&ED leading to a similar need for applicants to leverage the receipt of future credits.

(5) Source: http://www2.gov.bc.ca/gov/content/taxes/income-taxes/corporate/credits/interactive-digital-media

The Short Version

IDMTC

Interactive Digital Media Tax Credits Six provinces offer an interactive IDMTC Program or similar such program. The IDMTC Program operates in a similar manner to the SR&ED Program and can be combined with the SR&ED Program to maximize the applicant’s access to government funding. Learn More