Companies considering claiming the BC Interactive Digital Media Tax Credit may want to note two items not mentioned on the official BC IDMTC website:
Companies should expect to wait 2 months for the IDMTC registration number to be provided, once a complete registration package has been submitted. Incomplete packages delay the registration period. The BC Ministry of Finance will likely make a site visit of registrants before the application is approved and the registration number is provided. We strongly suggest that corporations have this registration number before filing their claim. If the IDMTC claim is submitted without a registration number it will likely trigger a CRA review.
In any given tax year you must choose between BC SR&ED or BCIDMTC. However, you can register for the IDMTC, and then determine which has the better outcome. If you decide to go with BC SR&ED, you can de-register your IDMTC application, and file an SR&ED claim, but you will forfeit your application fee.
The registration process is undergoing review by the MoF. It appears that the process is becoming almost as onerous a the SR&ED claim process as the MoF decides what corporations are required to provide to demonstrate eligibility.
As Western Canada’s largest SR&ED firm, Revenue Services Group prepares IDMTC stand-alone applications or in conjunction with SR&ED claims.
BC’s interactive digital media tax credit is a 17.5% tax credit (on eligible payroll) for companies working on interactive digital media like video games. For more on the IDMTC please see “What is the IDMTC?”
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ADDITIONAL NET INCOMEFunding & Tax Credits