Canada’s 2021 Tax Incentives for Digital Media
Ever wondered why the Great White North is becoming an ideal destination for digital media corporations? The answer lies within their lucrative tax credits!
The federal, provincial, and territorial governments are all about creating employment opportunities and ensuring that their country is always open to business. This is why Canada has introduced its latest tax incentives for the interactive digital media industry.
We find out the tax credit rates in Canadian provinces, who qualifies for them, and how can digital media organizations avail these tax incentives.
Digital Media Tax Credits Claims in Canada
Canadian provinces have come up with their own tax credit rates. While British Columbia offers only 17.5%, provinces like Manitoba and Ontario feature a rate of up to 50% of eligible salaries.
Do you qualify for the Digital Media Tax Incentives?
Corporations that produce interactive digital media content can qualify for the Canadian Digital Media Tax Incentives. If you’re an organization that produces video games, educational software, entertainment products, and simulators, you might be able to qualify for the tax incentives.
However, a corporation might not be eligible for the digital media tax credit if it claims a Scientific Research and Experimental Development tax credit for the same taxation year.
How to Apply for Canada’s Digital Media Tax Incentives?
Are you interested in applying for the lucrative digital media tax incentives for 2021? We brief you on how to fill out the provincial tax credits application forms and claim your tax credits!
Before you begin working on the online application, certain provinces require you to obtain a certificate of eligibility. Once you have been deemed eligible for the digital media tax credits, you can begin working on your online application.
Begin by filling your T2 corporation income tax returns for the taxation year.
You’ll need to list the amount of credit you’re claiming and submit your application through the online portal or drop a paper return to your nearest tax center.
The CRA will then begin to process your application once it receives a complete claim along with the required documents.
Don’t know how to apply for Canada’s 2021 interactive digital media tax incentives? A tax specialist can help you out! Faber LLP provides its taxation services in Edmonton, Alberta. Our tax specialist can help you file tax claims in the province of Alberta.
At Faber LLP, we are a team of qualified accountants, bookkeepers, and tax specialists who can provide exceptional taxation and advisory services.
You can head to our website to learn more about our tax and accounting services in Edmonton, Canada.