Canadian media organizations can now prepare and submit to the Canada Revenue Agency (CRA) applications in order to determine if they qualify for a new refundable labour tax credit that is available for the news industry.
The CRA recently published application forms and guidance on this new 25% refundable labour tax credit that was announced in the 2019 federal budget. Currently, it is not clear how long it will take applicants to obtain the required certification as a “qualified Canadian journalism organization” (QCJO). The CRA confirmed that news organizations can now submit their applications to be considered eligible for the credits. Meeting the definition and being approved as a QCJO is the first step in obtaining the tax credit.
The CRA's guidance includes details on the application process, and several examples of how the credit may be calculated in different circumstances. The CRA is accepting comments on its new guidance, and is scheduled to have a conference call to discuss the application process with stakeholders on 14 January 2020.
Read a January 2020 report prepared by the KPMG member firm in Canada
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