Ontario Creates – Ontario Computer Animation and Special Effects Tax Credit (2021)

Amount:

No Fixed Amount

Type of Program:

Tax Credits

Description:

The Ontario Computer Animation and Special Effects Tax Credit is a refundable tax credit equal to 18% of the qualifying labor expenditures for eligible computer animation and special effects activities, incurred by a qualifying corporation in a tax year for an eligible production.

Comments on Funding:

Funding is 18% of the eligible Ontario labor expenditures.

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

The applicant must:

  • Be a Canadian corporation
  • Perform eligible computer animation and special effects activities for the eligible production at a permanent establishment in Ontario for the tax year
  • Not be exempt from tax under Part III of the Taxation Act, 2007 (Ontario) for the tax year
  • Not be controlled directly or indirectly, at any time in the tax year, in any way, by one or more corporations, all or part of whose taxable income is exempt from tax under section 57 of the Corporations Tax Act (Ontario) or Part III of the Taxation Act, 2007 (Ontario)
  • Not be a prescribed labor-sponsored venture capital corporation at any time in the tax year.

Applications Steps:

The applicant must:

1

Apply online to Ontario Creates for a certificate of eligibility. Only one certificate of eligibility is issued for all of the eligible productions for the tax year.

2

file the certificate of eligibility and a completed Schedule 554, Ontario Computer Animation and Special Effects Tax Credit, for each eligible production together with the tax return to Canada Revenue Agency in order to claim the Ontario computer animation and special effects tax credit.

Documentation Needed:

Applicants must submit:

  • the certificate of eligibility issued by Ontario Creates;
  •  the completed Schedule 554, Ontario Computer Animation and Special Effects Tax Credit, for each eligible production;
  • their T2 Corporation Income Tax Return for the year.

Program Contact:

Ontario Computer Animation & Special Effects Tax Credit website

Ontario computer animation and special effects tax credit

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