Register for the Interactive Digital Media Tax Credit
Your corporation must register with the Ministry of Finance for each tax year that it wants to claim the Interactive Digital Media Tax Credit (IDMTC).
Your corporation must meet the corporation requirements every year that you register for the IDMTC.
You can register during or after the tax year. However, you must start the registration process early enough to meet the deadline to claim the credit.
If your corporation is represented by another person, such as an accountant, tax preparer or solicitor, you must complete the Authorization or Cancellation of a Representative (FIN 146) before we can discuss any matter with your corporation's representative. An authorization is valid until the ministry receives a change or cancellation from your corporation’s authorized signing authority in writing.
If your corporation’s reorganization triggers a year end, contact us.
Each year, corporations must meet certain requirements to register for the IDMTC.
A corporation can register for a tax year if, in that tax year:
It has a permanent establishment in B.C.
It is a taxable Canadian corporation throughout the year
At least $2,000,000 if the tax year ends on or after February 22, 2017, or
Are between $100,000 and $2,000,000 and either one or both of the following applies:
- Its principal business is developing interactive digital media products
- All or mostly all of its business consists of providing eligible activities to a corporation that has a permanent establishment in B.C. and whose principal business is developing interactive digital media products or whose eligible salary and wages are at least $2,000,000
A corporation cannot register for a tax year if, for that tax year, it:
- Is a labour-sponsored venture capital corporation
- Has a registered employee share ownership plan
- Is a registered employee venture capital corporation
- Is a registered small business venture capital corporation
- Is controlled, directly or indirectly in any manner whatever, by one or more of the above corporations
- Claims a B.C. scientific research and experimental development (SR&ED) tax credit (you can only claim the IDMTC or SR&ED tax credit for any tax year, not both)
- Carries on a personal services business
How to register
If you’ve previously applied to register for the IDMTC and you already have an eTaxBC username for a different tax account, you can add access to your IDMTC account by logging on to eTaxBC and selecting Add access to additional account. Then you may submit the application within eTaxBC.
If you’ve previously applied to register for the IDMTC and this is your first time enroling in eTaxBC, refer to your enrolment letter and follow the instructions. Enrol for access to eTaxBC with the information provided in your enrolment letter. Then you may submit the application within eTaxBC.
If this is your first time applying to register for the IDMTC, or if you weren’t successfully registered, you must first complete an IDMTC application for registration.
After submitting the application, you’ll receive an enrolment letter in the mail, which will allow you to enrol for access to eTaxBC. If you already have an eTaxBC username, you can add access to your IDMTC account from your enrolment letter.
The following documents to be included during the application process include:
A copy of your annual financial statements or interim financial statements for the tax period, including notes to the financial statements
A short history of the corporation, including a list of previously developed products
The current business plan (if available)
A list of all current and planned interactive digital media products for the tax year, including IDM product names, descriptions, development cycles, release dates, update release dates and screen shots
If you provide IDM services to other corporations, a list of corporations associated with the IDM products
The current organizational chart
A list of specified employees and key employees, including short biographies
A list of eligible salary and wages for all employees, including employee names, job titles, total salaries, and eligible salaries
A list of salaries and wages attributable to each eligible and non-eligible (if applicable) product developed for the tax period
- The sum of this list should reflect the total estimated eligible salaries and wages for the claim
A description of any assistance, other than federal scientific research & experimental development tax credits, received by the corporation for the tax year, such as:
- The Canada Media Fund
- The Industrial Research Assistance Program
- Student training grants
- Supports received during COVID-19 pandemic