B.C. Interactive Digital Media Tax Credit (BC IDMTC)

The BC IDMTC is a cash credit equal to 17.5% of eligible salaries of employees developing an interactive digital media product in BC, mainly video games. Contractors do not qualify. The claimant is required to meet the three characteristics of the “interactive” test for its product, the “principal business” test, and minimum salary requirement.

There are a number of other constraints including salaries cap and bonuses of owners. Claims are complicated by receipt of other “government assistance”. Each of these issues require detailed analysis to ensure the company is a) eligible and b) calculating the tax credit correctly.

The BC Ministry of Finance (BCMOF) will conduct a review to determine if the product qualifies. Canada Revenue Agency (CRA) will conduct a review to determine if the calculation of the tax credit is accurate and complete.

By filing dozens of BC IDMTC claims since the inception of the program in 2010, we have come to understand the application of the BC IDMTC legislation as well as the BC MOF and CRA administrative policies in order to file accurate and complete claims for our clients. In some cases we worked with the BC MOF to establish parameters of eligibility for products not previously claimed. We also held discussions with the CRA decision makers to establish synergies between the federal SR&ED tax credits and the BC IDMTC. All of the applications we have filed to date were approved by the BC MOF and the tax credit claims were approved by the CRA after review.

There is a non-refundable application fee of $1,000 to $5,000 depending on the number of employees on your payroll. Contact us for a complimentary preliminary evaluation. If we determine your product qualifies and file the application on your behalf, we guarantee your application will be approved by the BC MOF or we will refund the application fee to you.

Our BC IDMTC Services

  • We take the uncertainty away from the filing process and have a time-proven methodology that minimizes the impact on your work schedule.
  • We prepare the application for registration and all supporting schedules.
  • We compile the eligible costs and calculate the tax credit from information you provide us.
  • We update the relevant tax schedules on your corporate income tax return to make a tax credit claim. We coordinate with your accountant to file the tax return with the CRA in prescribed manner. The filing deadline of the BC IDMTC claim is 18 months from your fiscal year-end.
  • We provide complete and proactive support during reviews by the BC MOF and CRA auditors. We have a reputation with the BC MOF and the CRA for filing eligible claims within the letter and spirit of the BC IDMTC legislation. We work with the reviewers in a cooperative and professional manner. Some of our consultants were former CRA reviewers.
  • We provide training on gathering and maintaining proper cost and activity documents to support future claims.