How can my
business receive tax credits in Canada for my video game development
In Canada, there are several tax credits and incentives available for video game development. One of the primary incentives is the Scientific Research and Experimental Development (SR&ED) tax credit program , which is administered by the Canada Revenue Agency (CRA). Here’s a general overview of the process:
1. Eligibility: To be eligible for SR&ED tax credits, your video game development project must involve technological advancement or innovation. This could include improving existing technologies, developing new technologies, or overcoming technological challenges.
2. Documentation: Keep detailed records of your project activities, including research, experimentation, and technological advancements. Documentation is crucial for demonstrating to the CRA that your project meets the criteria for SR&ED.
3. Submit Claim: You’ll need to submit a claim for SR&ED tax credits with your annual corporate tax return. The claim should include information about your project, the technological advancements or challenges you faced, and the eligible expenditures incurred during the development process.
4. Review Process: The CRA will review your claim to determine its eligibility for SR&ED tax credits. This process may involve further documentation requests or inquiries to clarify aspects of your project.
5. Tax Credit Calculation: If your claim is approved, you’ll receive tax credits based on the eligible expenditures incurred during the SR&ED activities. These credits can be used to reduce your corporate income tax liability or refunded if your company is not profitable.
6. Provincial Incentives: In addition to the federal SR&ED program, some provinces offer their own tax credits and incentives for video game development. Check with your provincial government to see if there are any additional programs available.
It’s important to note that navigating the tax credit process can be complex, so you may want to consult with a tax professional or specialized SR&ED consultant to ensure that you maximize your eligible credits and comply with all requirements. There are funders readily available via a search. Alternatively, or after you’ve performed a search, contact me and I’ll provide comparisons and include the funders who aren’t normally or easily accessible that are actually most suitable to fund your project.