Ontario Interactive Digital Media Tax Credit (OIDMTC)

To provide an incentive, in the form of a tax credit, to interactive digital media producers in the province of Ontario.

Ontario Creates

Overview of the Ontario Interactive Digital Media Tax Credit (OIDMTC) program:

The Ontario Interactive Digital Media Tax Credit (OIDMTC) is a valuable incentive program offered by the Government of Ontario to support companies in the province’s digital media sector. This refundable tax credit is designed to encourage the creation and commercialization of interactive digital media products, providing significant financial relief to qualifying businesses. The OIDMTC helps reduce the overall cost of developing digital products, enabling companies to reinvest in innovation and growth.

Benefits of the Ontario Interactive Digital Media Tax Credit (OIDMTC) program:

The OIDMTC offers eligible companies a refundable tax credit of up to 40% on eligible expenditures related to the development of interactive digital media products. For small companies, this rate can go up to 35% for qualifying labour, marketing, and distribution expenses. This tax credit can be claimed annually, providing ongoing financial support to businesses as they develop and commercialize new digital media products. The program is particularly beneficial for reducing the financial burden associated with hiring talent, producing content, and bringing products to market, making it easier for companies to innovate and expand.

Eligibility criteria of the Ontario Interactive Digital Media Tax Credit (OIDMTC) program:

To qualify for the OIDMTC, companies must meet the following criteria:
Location: The business must be a Canadian corporation with a permanent establishment in Ontario.
Product Type: The company must be involved in the development of interactive digital media products, such as video games, educational software, mobile apps, or websites.
Primary Business Activity: The company's primary business activities must be related to interactive digital media development.
Expenses: The company must incur eligible expenditures, such as salaries and wages for employees involved in the development, as well as marketing and distribution costs.