C I B C WO O D G U N DY
Corporations that are Canadian-controlled
private corporations (CCPCs) receive a refund-
able tax credit, which is 10% of the lesser of:
• The amount of qualified SR&ED
expenditures incurred in BC in the year; or
• The expenditure limit (generally $3
million).
D I S COV E R A F I N A N C I A L
P O RT R A I T T H AT C A P T U R E S
YO U R I D E A L R E T I R E M E N T
Any amount claimed over the expenditure
limit is non-refundable. Corporations that
are not CCPCs can claim a non-refundable
credit. Qualifying expenditures include the
wages for employees working on SR&ED
projects, the cost of materials, and the cost of
using subcontractors. Certain overhead costs
can also be claimed.
A thorough analysis should be performed to
determine whether R&D projects are consid-
ered qualifying projects for SR&ED purposes.
A project description must be submitted along
with the financial claim.
Interactive digital media tax credit
(IDMTC)
BC’s IDMTC has been available for eligible
registered corporations that develop interactive
digital media products since 2010. The credit
is calculated as 17.5% of eligible salary and
wages incurred prior to September 1, 2018,
and is refundable once it has been applied
against provincial income taxes payable.
The following changes to the program will
affect taxation years ending after February 22,
2017:
• Corporations whose annual qualifying
labour expenses in BC exceed $2 million
will not have to meet the principal
business criteria (this criteria requires
that an applicant’s principal business is
the development of interactive digital
media products).
• Corporations that also participate in the
small business venture capital program
will be able to apply for the IDMTC as
long as they meet the other eligibility
requirements.
In the September 2017 budget update, the
BC government did not comment on whether
augmented and virtual r eality projects will
be eligible to claim the IDMTC.
Contact me today for a complimentary
consultation.
Bryan Sommer , CPA, CA, CFP, CIM
Portfolio Manager
604 535-3722
[email protected]
www.bryansommer.com
For a free copy of my easy to read book,
please call or visit www.therevealbook.ca
“CIBC Private Wealth Management” consists of services provided by CIBC and certain of its
subsidiaries, including through CIBC Wood Gundy, a division of CIBC World Markets Inc. (“WMI”).
CIBC World Markets Inc. is a Members of the Canadian Investor Protection Fund and Investment
Industry Regulatory Organization of Canada. If you are currently a CIBC Wood Gundy client, please
contact your Investment Advisor. The CIBC logo, “CIBC Private Wealth Management” are registered
trademarks of CIBC, used under license. “Wood Gundy” is a registered trademark of CIBC World
Markets Inc.