Tax Memo: Tax Incentives for Digital Media in Ontario

Through recent initiatives, Ontario has demonstrated its commitment to the development of digital media in the province. The 2009 Ontario budget enhanced the refundable Ontario Interactive Digital Media Tax Credit (OIDMTC) by increasing the rate to 40% for qualifying corporations that develop their own product, regardless of the company's size. In addition, qualifying corporations that develop eligible products under a fee-for-service arrangement qualify for a 35% refundable tax credit.

In this economic environment, OIDMTC's refundability reduces a company's development costs so qualifying corporations need not be taxable to enjoy the benefits. The program has been enhanced significantly by Ontario's provincial government in two out of three budgets since 2006. This Tax Memo provides a brief OIDMTC overview and chronicles the program's key changes.

Tax Memo: Tax Incentives for Digital Media in Ontario (97 KB) Download the full PDF Tax Memo.