BC IDMTC: How much time does it take?

Posted on Sep 13, 2011

A video gaming company will receive a tax credit equal to 17.5% of qualified expenses (minus $5,000 registration fee) if its primary business is the development of interactive digital media. But to get the credit you need to go through a two stage process. First you need to register. Then you can make the claim.

Registration is a lengthy process. It will take a week to complete the application form. Then the Ministry of Finance will determine whether your principle business is the development of interactive digital media. If you’re in the business of developing serious video games this process is not lengthy. But if you are not a serious game developer and you think that your primary business is the development of interactive digital media be prepared to be strip searched. As you can image a thorough search in a side room takes longer than walking through a metal detector. Much longer. So you need to figure for another few weeks of interaction with the Ministry, it could run to months depending on your and their timeliness of response.

Only once you’ve been through the vetting process can you make a claim. More time. And your primary business is re-evaluated yearly. That’s why we’re wondering. Is the BC IDMTC worth the effort? Remember that if you claim SR&ED, the IDMTC is worth only the increment between the IDMTC what you would have received from SR&ED.

If you’re not a serious game developer, you need to do the math. You may eventually receive dollars/you may not. Either way it’ll cost you time. For more of our view contact Ruth.Spink@RevenueServices.ca

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