OIDMTC Applicants

• As outlined in the OIDMTC regulations, in order for a product to be eligible for the OIDMTC the product must meet a quantitative rule based on the total development labour to create the product incurred during the 37-month claim period. If you are applying for the OIDMTC your company must demonstrate that 80% of the total development labour to create the product is attributable to eligible wages of your employees, and eligible remuneration paid by you to arm’s length individuals or their personal corporations or sole proprietorships. Also, 25% of the total development labour to create the product must be attributable to eligible wages paid to your employees. Please note: eligible wages and eligible remuneration for the 80/25 rule must be paid for work performed in Ontario by Ontario residents.

  It is possible for some co-development to take place on a product. The 80/25 rule allows for up to 20% of the total development labour costs to be incurred and paid by another corporation. In such a co-development scenario there will still only be one applicant who will be able to demonstrate that they’ve met the 80/25 rule for OIDMTC eligibility.

  The only exceptions to the 80/25 rule are for qualifying digital game corporations under section 93.1 or specialized digital game corporations under section 93.2:

  Under section 93.1 applicants do not have to meet the 80/25 rule. Instead, to be eligible under section 93.1 you must be a qualifying digital game corporation meaning that you carried on a business that includes the development of digital games in Ontario AND incurred a minimum of $1 million in eligible labour expenditures on a digital game under an agreement with a purchaser corporation during a 36-month period that ends in the tax year.

  Under section 93.2 applicants do not have to meet the 80/25 rule. Instead, to be eligible under section 93.2 you must be a specialized digital game corporation meaning that you carried on a business that includes the development of digital games in Ontario, where your company incurred a minimum of $1 million in eligible labour expenditures in the year on a digital game(s) and either a) at least 80% of the total salaries and wages incurred by your company in the year for services rendered in Ontario are directly attributable to the development of digital games, or b) at least 90% of your company’s gross revenues for the year are directly attributable to the development of digital games.