Multi-media, Design & E-Business Tax Credits
Multimedia Tax Credit
Several provinces in Canada offer tax credits for multimedia, digital and interactive activities, however each of these programs have their own criteria and timelines. In addition to maximizing these tax credits individually, it is important to have a comprehensive strategy to allocate spending in the right provinces, but also one that integrates these tax credits and others such as SR&ED. Our extensive industry knowledge of tax credits means we’re here to help you build a solid strategy and understand the landscape in Canada. We’ll set you up for success and help you access the appropriate federal and provincial programs to get you the support your business needs.
Design Tax Credit
This program, exclusive to Quebec, provides a tax credit of up to 24% for eligible design activities. This program contains 2 panes: a fashion design pane and an industrial design pane. This program is routinely used by industrial companies, since it allows them to fund activities that could be considered routine under SR&ED and would therefore not be eligible as part of a SR&ED claim.
Recent developments to the SR&ED program have made the Design Tax Credit program increasingly attractive to Canadian Design companies. Ayming offers both all inclusive and a la carte services to help you benefit from the Design Tax Credit while continuing to maximize your other funding such as SR&ED or Grants.
E-business Tax Credit (CDAE)
The e-business tax credit is exclusive to Quebec. This program provides a 30% tax credit up to $25,000 per eligible employee to firms specializing in certain areas of information technology. We have been a pioneer of the program, having submitted claims since its inception, and our teams have constant interactions with Investissement Québec to map the evolution of the program’s eligibility context. This program is constantly evolving in order to keep pace with technological developments. Its regularly adjusted criteria, and its permanent nature since 2015 have lead to a change of direction, with e-business having previously been an incentive in the past to now becoming a fully established program subject to the same control requirements as other tax credits.
Deduction for Innovative Manufacturing Societies (DSI)
This tax deduction, effective January 1, 2017, is commonly referred to as the “Patent Box”. It is intended to reduce taxable income by taking into account income derived from innovation. The relative novelty of this program, as well as its impact on the innovation strategy of your company, requires the use of experts like Ayming who can assist you in the preliminary phases of the program (innovation strategy, intellectual property, SR&ED) as well as the downstream phases (maximization of deduction calculation, audit defense).
Common Industry Challenges
When navigating through the landscape and trying to understand all the elements, many are faced with the following questions:
- How can I take advantage of these tax credits in addition to SR&ED?
- How do I ensure that all claimable time and expenditures are accounted for?
- How do I identify eligible projects and activities?
- What happens if my province’s program is eliminated in the coming years?
- If my program isn’t in the Tax Act, how can I know what protocol I need to follow?
- What if I also want to apply for government grants?
When looking to apply for Design, Multimedia, or e-Business tax credits it is imperative you develop a strategy to not only capture these returns but also potential funding from SR&ED or other government funding programs. Using a partner like Ayming who can help you understand the intricacies of each program but also support you with a comprehensive plan to incorporate all potential government funding will be the key to your success.
Management of the entire complaint process, from the identification of eligible activities and employees, to the defense of the file during the audit. Working with you end-to-end in order to reach your goals.
A la carte service (pay only for what you need)
This service allows more experienced companies to call on Ayming’s expertise on specific issues. Thus, we offer: Technical Writing, Financial Preparation and Forms Production, Quality Control of Claim to Maximize Opportunities and Audit Stimulation/Assistance. Our À la Carte Services can be a great fit for companies who want the ability to customize the services they receive and get support in specific areas of the claim process.
Other Tax Credits and Special Mandates
If there is another tax credit or deduction for which you have questions or the need for expertise, do not hesitate to contact us. Our expert knowledge reaches beyond the categories mentioned above, and we will be pleased to assist you
Why Ayming as your trusted Partner?
Ayming secures $1.5 billion annually for its clients, and here are just a few more reasons why partnering with us can provide substantial financial benefits to your company:
- 1,100+ R&D experts serving our clients globally.
- We provide full support in the case of an audit or review, at no extra charge.
- Ayming Canada’s highly experienced delivery teams boast over 200+ years of combined tax credit experience and over 50+ years of combined grants experience, meaning you partner with true subject matter experts who are invested in your success.
- With Ayming, clients do not have to wait for the government agencies to process their tax credit applications in order to receive money immediately. Ayming has an exclusive fund of $150 million which provides accelerated access to your funding through our attractive financing offer.
- Our proprietary artificial intelligence (AI)-driven database of grants provides real time access to thousands of programs, including a custom snapshot of all federal and provincial grants currently available to your specific business.
- We are able to double the funding we bring to our clients with our combined tax credit and grants offer.
- Ability to service companies of all sizes, including early-stage and start-ups with our proprietary SR&ED Express offer.