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Tax credit for multimedia titles
A qualified corporation that produces multimedia titles may be entitled to a tax credit for its qualified labour expenditure.
The rate of the credit varies according to the type of multimedia title produced. The rates are as follows:
- 37.5% for titles that are produced without having been ordered, are intended to be commercialized and are available in French
- 30% for titles that are produced without having been ordered, are intended to be commercialized and are not available in French
- 26.25% for other titles
A multimedia title is an organized set of numerical information in respect of which Investissement Québec has issued to the corporation a certificate or a favourable advance ruling, as applicable, certifying that the multimedia title is eligible.
Corporations that may apply for the credit
In order to claim the credit, the corporation
- must have an establishment in Québec and carry on an eligible business in Québec;
- must hold a favourable advance ruling or a certificate issued by Investissement Québec;
- must not be exempt from income tax; and
- must not be entitled to the tax credit for corporations specializing in the production of multimedia titles.
Expenses giving entitlement to the credit
The following are qualified labour expenditures:
- salaries and wages that are attributable to a multimedia title and that the corporation paid to its employees for eligible production work
- where the work is done by a related subcontractor located in Québec, the salaries and wages paid to the employees of a person or partnership for eligible production work relating to the title
- where the subcontractor located in Québec and the qualified corporation are dealing at arm's length, 50% of the consideration paid to the subcontractor's employees
Eligible production work is the work indicated on the certificate obtained from Investissement Québec after March 30, 2004.
Government and non-government assistance reduce the labour expenditures for which the credit is granted, with the exception of an amount deemed paid to the Minister for a taxation year with respect to the credit, and of amounts deducted or deductible for the purposes of the federal investment tax credits.
How to apply for the credit
To apply for the credit, the corporation must complete form CO-1029.8.36.TM, Crédit d'impôt pour des titres multimédias, and enclose the form with its income tax return or file the form no later than 12 months after the filing deadline for the return.
The return must also be accompanied by a copy of the valid favourable advance ruling or the valid certificate obtained from Investissement Québec, as well as any other certificates issued by Investissement Québec.
