Amendments have been made to the Interactive Digital Media Tax Credit Regulations under the Income Tax Act, 2000, to extend the credit to December 31, 2024.
Companies developing an interactive digital media product in Newfoundland and Labrador may receive a 40 per cent tax credit on qualifying expenditures, which consist of eligible salaries plus 65 per cent of eligible remuneration. 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 to all taxation years ending in a calendar year.
A tax credit certificate may only be issued with respect to eligible salaries and eligible remuneration incurred by an eligible corporation after December 31, 2014 and before January 1, 2025. The eligible corporation must apply for a tax credit within 18 months of the end of the taxation year. More information is available online here.
The amendment is outlined in the Newfoundland and Labrador Gazette.
Quotes
“Our increasingly diverse and globally competitive technology sector plays a role in diversifying and developing all industries. We have extended the interactive digital media tax credit to provide incentive for businesses in Newfoundland and Labrador which are actively contributing to the technology sector in our province and throughout the world.”
Honourable Siobhan Coady
Minister of Finance
“Continuing supports for our high-growth technology firms is critical to helping them engage in research and development, diversify products and services, gain ground in international markets, and retain and drive employment opportunities. The interactive digital media tax credit helps our talented local firms develop local capacity and skills and acts as an enabler of digitalization and innovation in our economy.”
Honourable Andrew Parsons
Minister of Industry, Energy and Technology
– 30 –
Learn more
Interactive Digital Media Tax Credit Regulations
Amendment to Regulations (The Newfoundland and Labrador Gazette)
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