Ontario Digital Media Tax Credit



CTAP – What is OIDMTC?

Does your company develop interactive digital media products for sale, license or on a fee-for-service basis?

Have you created digital games, educational products, informational products, digital training materials, digital news or other digital media products in the last three to five years?

The OIDMTC program will refund up to 40% of qualifying development costs and up to 40% of qualifying sales and marketing costs (up to $100,000 per non-specified product). There are no limits to the number of products that you can claim and you can usually claim products that you have developed in the last four years. Even if you have already claimed SR&ED in the last four years, you can still go back and claim eligible OIDMTC on expenses that were not included on your SR&ED claim.

Is the majority of your development done in Ontario? If so, you may be eligible for the Ontario Interactive Digital Media Tax Credit (OIDMTC).

  • OIDMTC (Ontario Interactive Digital Media Tax Credit) – can be claimed together with SR&ED tax credits
  • OIDMTC Canadian media tax credit focuses on the the development of multimedia products with the main purpose to educate, inform, or entertain.
  • Interactive Digital Media Tax Credit yields 40% of eligible labour and marketing and distribution costs
  • OIDMTC includes marketing and distribution expenses capped at $100,000 per qualifying product.
  • Product based without limits on the claim amounts

Ontario Interactive Digital Media Tax Credit

“Interactive digital media product” is defined by the regulation as a combination of one or more application files and one or more data files, all in a digital format, that are integrated and are intended to be operated together Ok, tell me more…

The interactive digital media incentive program is calculated up to 40% of eligible labour, marketing and distribution expenditures for a qualifying corporation with respect to authorized interactive digital media products. The program was designed to reduce the cost for developing interactive digital media products. There is no limit on the amount of entitled labour expenditures which may qualify and there are no per project or annual corporate limits on the amount of the interactive digital media tax incentive which may be declared.

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CTAP SR&ED Tax Credit Senior Consultants and Corporate Advisers’ Corporate Tax Compliance team offers specialist support to companies with SR&ED tax credit submissions and corporate tax processing. In addition to the preparation of documents, our service includes providing expert SR&ED advice to companies looking to improve the efficiency of their own products and processes. This Corporate sheet contains an overview of our SR&ED services for various industries.

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