What’s new for corporations in Ontario

[2020-11-05 Budget]

Ontario extended deadlines and other measures due to COVID-19 – Due to delays resulting from COVID-19, Ontario is introducing regulatory amendments to temporarily extend some timelines and amend some requirements for the following refundable media tax credits:

• book publishing tax credit
• film and television tax credit
• interactive digital media tax credit
• production services tax credit

Ontario also proposes to extend the reporting period to claim an Ontario research and development tax credit. This would parallel the extension of the reporting deadlines for the federal credit.

Ontario film and television tax credit – For productions for which eligible expenditures were incurred before March 15, 2020 (and not completed), Ontario proposes to temporarily extend by 24 months the following:

• the deadline for filing an application for certificate of completion
• the period for which eligible expenditures can be claimed before principal photography begins
• the period to have the film or television production shown in Ontario after the production is complete and commercially exploitable, as agreed in writing

Ontario interactive digital media tax credit – For products that were not completed before March 15, 2020, and for which eligible labour expenditures were incurred in the 2020 tax year, Ontario proposes to temporarily extend the 37-month period during which eligible labour expenditure must be incurred by an additional 24 months.

Ontario production services tax credit – For productions for which eligible expenditures were incurred in Ontario in tax years ending in 2020 and 2021, Ontario proposes to temporarily:

• allow certain companies an additional 24 months to meet minimum spending requirements
• allow certain companies to claim otherwise eligible expenditures incurred in the two tax years before the year in which principal photography begins

[2020-03-25 Economic and Fiscal Update]

Ontario production services tax credit – Retroactive to June 4, 2015, eligible service contract expenditures included in determining a corporation’s expenditure limit must relate to remuneration paid by the corporation, rather than salary and wages paid to Ontario‑based individuals.

Ontario regional opportunities investment tax credit – Ontario introduced a new 10% refundable income tax credit for Canadian-controlled private corporations that make qualifying investments that become available for use on or after March 25, 2020, in specified geographic areas of Ontario. Qualifying investments are eligible expenditures for capital property included in capital cost allowance class 1 and class 6. These investments include expenditures for constructing, renovating or acquiring eligible commercial and industrial buildings and other assets. The credit will be available for expenditures of more than $50,000 and up to a limit of $500,000 in the tax year. In general, the qualifying region includes the north, the east (except the Ottawa region) and the south-west of Ontario