NEWFOUNDLAND AND LABRADOR REGULATION 80/19

NEWFOUNDLAND AND LABRADOR
REGULATION 80/19

Interactive Digital Media Tax Credit Regulations (Amendment)
under the
Income Tax Act, 2000
(O.C. 2019-265)

(Filed November 7, 2019)

Under the authority of section 46.3 of the Income Tax Act, 2000, the Lieutenant-Governor in Council makes the following regulations.

Dated at St. John's, November 7, 2019.

Elizabeth Day
Clerk of the Executive Council

REGULATIONS

Analysis

NLR 84/15
as amended

1. Subsection 9(3) of the Interactive Digital Media Tax Credit Regulations is repealed and the following substituted:

(3) Notwithstanding paragraph (1)(a), where an eligible corporation is applying for a tax credit certificate with respect to qualifying expenditures referred to in subsection 10(2) the eligible corporation shall apply for a tax credit certificate in respect of those qualifying expenditures within 6 months of the end of the taxation year during which the eligible product is completed.

2. Subsection 10(2) of the regulations is repealed and the following substituted:

(2) Notwithstanding subsection (1), where the eligible project consists of an eligible product being developed primarily for sale or licence to a government or an agency of a government, a municipality or an agency of a municipality or a corporation controlled by a government or a municipality

(a) the amount of the credit under subsection (1) in respect of qualifying expenditures incurred before November 8, 2019 cannot exceed the amount, if any, by which the eligible corporation's total cost of the eligible project exceeds the eligible corporation's proceeds from the sale or licence of the eligible product to a government or an agency of a government, a municipality or an agency of a municipality or a corporation controlled by a government or a municipality; and

(b) the tax credit in respect of qualifying expenditures incurred before November 8, 2019 may be claimed only after the eligible product is completed.