What is the Video Game Development Tax Credit?
The Video Game Development Tax Credit (VGDTC) was created to incentivize video game development in Canada by providing a refundable tax credit to Canadian-controlled corporations developing video games that are generally considered cultural products. The VGDTC is administered by the Canadian Audio-Visual Certification Office (CAVCO) of the Department of Canadian Heritage.
To be eligible for the VGDTC, a corporation must be incorporated under the laws of Canada or a province. The company must also have carried out video game development activities in Canada and file its tax return with the Minister of National Revenue for the taxation year. Eligible expenses for the VGDTC include labor costs incurred for video game development activities and qualified marketing and distribution expenses.
The publishing of video game software is a rising industry in Canada. Video game development studios have more than doubled in the last five years. The tax credit, which has helped make Canada an attractive destination for video game makers and firms looking to profit from the industry’s earnings, handles the growth.
How We Can Help
The Software Development Tax Credit allows companies planning to innovate to get a tax credit from the government for their research and development costs. Boast is a platform that helps companies estimate their claims throughout the year to complete their claim more efficiently, accurately, and with a larger refund. Boast’s engineers and accountants have helped clients maximize their R&D Tax claims through its proprietary software platform with less time and audit risk. Use Boast to get the most out of your R&D Tax claim.
Automated R&D Tax Credits for Software Development
The Boast platform gathers data from your technical and financial systems to identify and categorize eligible projects, time, and expenses—estimating along the way instead of only at the end—and getting you more money, faster, for less time, and risk.
- Time Tracking
- Audit Evidence
- Tax Forms
Frequently Asked Questions
Q:What is the difference between the VGDTC and the Canadian Film Video Production Tax Credit (CPPTC)?
Q:How do I apply for the VGDTC?
Q:What is the deadline for applying for the VGDTC?
Q:What documentation do I need to apply for the VGDTC?
- A detailed description of the video game development activities that were carried out in Canada;.
- A copy of the game's script;
- A development schedule; and.
- Proof of eligible expenses, such as invoices and contracts, and other relevant information.
Q:What is video game software publishing?
- Understanding the target market for your game;
- Having a solid business plan; and
- Being aware of the different channels through which games can be distributed.
Your free 1-hour consultation includes a detailed review of our platform, your projects, processes, and financial data by one of our R&D Tax experts.
Talk to one of our experts to see how outsourcing your R&D tax claims to Boast can get you more money back from the government and help you regain the time you need to run your business.
Fill out the form to schedule your demo.