The government of Canada provides tax credits for digital media projects such as game development, educational software, animated simulators and more. Digital media tax credits are offered for qualifying companies permanently located in the provinces of British Columbia, Manitoba, Ontario, Quebec, Nova Scotia, and Prince Edward Island.

At Boast Capital, we focus on helping companies claim the British Columbia Interactive Digital Media Tax Credit (IDMTC).

British Columbia’s Interactive Digital Media Tax Credits

IDMTC came into effect September 1, 2010 to stimulate revenue and job creation within the digital media industry in British Columbia.

What Can You Claim?

IDMTC provides a refundable 17.5% tax credit on eligible salary and wages involved in creating interactive digital media (IDM) products. The credit is fully refundable but is first applied to income tax payable.

A qualifying IDM product should designed to be used interactively by an individual and consist of a combination of files that are digitally integrated and are intended to be operated together.

Qualifying products must also either educate, entertain, or inform using at least two of the following: text, sound, and/or images. Examples of eligible IDM products includes:

  • Video games
  • Educational software
  • Entertainment (or edutainment) software
  • Simulators, such as driving a car

Blogs, online magazines and newspapers, slideshows, videos or presentations that are not made to be used interactively do not qualify.

Who Can Claim It?

Companies permanently located in British Columbia can claim the tax credit.

When Should You Submit a Claim?

Similar to the SR&ED tax credit, your deadline to file IDMTC is 18 months past fiscal year end.

BC’s IDMTC Expires on September 1, 2018.

Get a free 1 hour consultation with an expert

Your free 1 hour consultation includes a detailed review of your projects, processes and financial data by one of our R&D Tax experts. We will cover:

  1. What projects qualify
  2. Risk analysis of each project
  3. Financial analysis of each project along with an estimate of the total return you can expect
  4. How to maximize your claims
  5. If you are already claiming, we will analyze your past claims to determine if anything was missed

Talk to one of our experts to see how outsourcing your R&D tax claims to Boast can get you more money back from the government and help you regain the time you need to run your business.

Fill out the form to schedule a conversation.