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, 2018.

You cannot claim this credit if you claim the BC SR&ED 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. This amount is prorated for short tax years; and
• be a corporation whose
  • principal business in the tax year is the development of interactive digital media products; or
  • all or substantially all of the business in the tax year consists of one or both of the following:
    • the development of interactive digital media products,
    • the provision of 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.

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

Claiming the credit

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

Government partners

• British Columbia (provincial site)

Date modified:

2017-02-23