British Columbia interactive digital media tax credit

The interactive digital media tax credit is a refundable credit equal to 17.5% of BC eligible salary and wages (net of designated assistance) incurred before September 1, 2028.

You cannot claim this credit if you claim the BC scientific research and experimental development tax credit for the year.

Also, the corporation must meet all of the following conditions:

• be registered with the BC Ministry of Finance for each tax year for which the tax credit is claimed
• have a permanent establishment in British Columbia at any time during the tax year
• be a taxable Canadian corporation throughout the tax year
• either of the following applies:
  • the corporation has eligible salary and wages for the tax year of $2,000,000 or more
  • the corporation has eligible salary and wages for the tax year of more than $100,000 and less than $2,000,000, and either of the following applies:
    • the corporation's principal business in the tax year is developing interactive digital media products
    • all or substantially all of the corporation's business in the tax year is one or both of the following: developing interactive digital media products; or providing eligible activities to a corporation that has a permanent establishment in British Columbia and either has as its principal business the development of interactive digital media products or has eligible salary and wages equal to or greater than $2,000,000 for the tax year

The $100,000 and $2,000,000 are prorated for short tax years.

For more information about this credit, see Part 10 of the British Columbia Income Tax Act.

Claiming the credit

File Schedule 429, British Columbia Interactive Digital Media Tax Credit, with your return.

On line 680 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of the credit you are claiming.

You must claim this credit no later than 18 months after the end of the tax year.

Forms and publications

• Schedule 429, British Columbia Interactive Digital Media Tax Credit
• Schedule 5, Tax Calculation Supplementary – Corporations

Government partners

• British Columbia (provincial site)