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, 2023.

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

Also, the corporation must:

  • 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
  • have an amount of eligible salary and wages for the tax year greater than $100,000, and
  • be a corporation whose:
    • principal business in the tax year is the developing interactive digital media products
    • all or substantially all of the business in the tax year consists of one or both of the following:
      • developing interactive digital media products
      • providing eligible activities to a corporation who has a permanent establishment in British Columbia and whose principal business is the development of interactive digital media products, or
    • principal business in the tax year is not developing interactive digital media products, but eligible salary and wages are equal to or greater than $2 million for tax years that end after February 21, 2017

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

Note

For tax years that end after February 21, 2017, interactive digital media corporations registered as eligible business corporations in the small business venture capital program are eligible to claim the credit.

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.

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