Interactive Digital Media Tax Credit - Newfoundland & Labrador

Tax credit for interactive digital media production in Newfoundland and Labrador

The NL IDM tax credit is a refundable tax credit for corporations developing an interactive digital media product in NL. It provides a 40% tax credit on qualifying expenditures, which consist of eligible salaries plus 65% of eligible remuneration paid. The credit value is limited to $40,000 per eligible employee per year and $2 million per company, or group of associated companies, in respect of all taxation years ending in a calendar year.

1. Review eligibility criteria to ensure your corporation qualifies for the tax credit 2. Prepare necessary documentation, including incorporation documents, financial statements, and project descriptions 3. Apply for a registration certificate as an eligible corporation, preferably through the NL Film Development Corporation 4. Upon receiving the registration certificate, develop the interactive digital media product as planned 5. After the end of the taxation year, apply to the Minister of Finance for a tax credit certificate within 18 months, submitting required forms and supporting documents 6. Once the tax credit certificate is issued, claim the credit on the appropriate line of your T2 corporate tax return