Who is eligible?The Quebec Production of Multimedia Titles Tax Credit (CTMM —"the Multimedia Credit") may be claimed by a "qualifying corporation", which is a Canadian corporation (or a foreign-owned corporation operating in Canada) that:
Who is not eligible?Companies that are not eligible for the multimedia titles tax credit: a corporation that is exempt from tax; eg: Non-Profit Organization a Crown corporation or subsidiary wholly controlled by such a corporation; a corporation that claimed the tax credit for a company specializing in the production of multimedia titles.
What kind of products are eligible?Eligible production is to be carried out for the purpose of completing the production stages of the mutlimedia title, commencing with the design stage and indefinitely thereafter.
What kind of labour expenses can be claimed?Expenditures must be incurred by the producer for eligible production work. Eligible labour expenditures include all of the following amounts: Salaries and wages paid to eligible employees; The portion of amounts paid to a subcontractor not dealing at arm’s length with the multimedia producer for the execution of eligible production work by employees of the subcontractor in an establishment in Québec; 50% of amounts paid to a subcontractor dealing at arm’s length with the multimedia producer for the execution of eligible production work in Québec.
How Does a Company Apply for the Credit?
To be entitled to the tax credit, your corporation must first have a valid initial qualification certificate issued by Investissement Québec certifying that the title produced or to be produced satisfies the requirements in effect. Subsequently, your corporation must obtain, for every fiscal year for which it wishes to claim the tax credit, an annual eligibility certificate regarding the production work related to the eligible multimedia title.
Quebec Multimedia Tax Credit
Quebec Multimedia Tax Credit (CTMM) is a 37.5 per cent refundable tax credit available to eligible corporations for qualifying expenditures incurred to foster and encourage innovative interactive digital media products in Quebec. This Budget proposes to improve accessibility to the OIDMTC. Effective for eligible products completed after May 11, 2005, the requirement that eligible corporations demonstrate a minimum 90 per cent copyright ownership in the eligible product would be relaxed, provided that the product is not developed under a fee-for-service arrangement. A mixture of text, audio, animation, and images can engage and amuse audiences, but beyond that, this special blend can also earn your clients a hefty tax credit. If your clients produce multimedia titles in Quebec, they may be able to claim a refundable credit worth about a third of their labour expenses. Here’s what you need to know to advise clients about this generous credit. Eligibility To claim the Production of Multimedia tax credit, corporations must be based in Quebec and focused on creating qualifying multimedia titles, such as video games, educational software, or training simulators. In particular, their multimedia productions must contain a large volume of three of the following four types of media: