Canadian Journalism Labour Tax Credit
no fixed amount
Tax Credit
Description:
The Canadian journalism labour tax credit is a refundable tax credit that is available to an organization that is a corporation, a trust, or a partnership.
Comments on Funding:
The credit is calculated by applying a rate of 25% to the total qualifying labour expenditure incurred for a period in the tax year beginning on or after January 1, 2019, in respect of each eligible newsroom employee of a qualifying journalism organization (QJO), less any amount received from the Aid to Publishers component of the Canada Periodical Fund in the year.
Rolling deadline
Eligibility:
Applicants must:
1. be an organization, including:
a) a corporation;
b) a trust;
c) a partnership.
2. first be designated as a qualified Canadian journalism organization (QCJO). It must then meet both of the following additional criteria:
a) it does not hold a licence, as defined in subsection 2(1) of the Broadcasting Act;
b) if it is a corporation with share capital, it meets specific ownership conditions of a Canadian newspaper as defined in the Income Tax Act.
3. have eligible newsroom employee, means an individual who:
a) is employed by the QJO in the tax year;
b) at any time in the tax year, has been, or is reasonably expected to be, employed by the QJO for a minimum period of 40 consecutive weeks that includes that time;
c) works, on average, a minimum of 26 hours per week throughout the portion of the tax year in which the individual is employed by the QJO;
d) spends at least 75% of their time engaged in the production of original written news content, including researching, collecting information, verifying facts, photographing, writing, editing, designing and otherwise preparing content;
e) meets any other conditions that may be prescribed (currently there are no other prescribed conditions).
Application Steps:
1. Corporation:
a) Applicants must file T2SCH58 and enter the total credit amount on line 798 of the T2 return.
b) If part of a partnership, claim the allocated credit on line 130 of T2SCH58 and include it on line 798 of the T2 return.
2. Partnership:
a) Applicants must file T5013SCH58 and enter allocated amounts for eligible members on line 220 of part 4.
b) Eligible members claim the credit on their returns: line 47555 (T1), line 798 (T2), or line 91 (T3).
For QJO partnerships, the credit is divided among eligible members.
3. Trust:
a) Applicants must provide supporting documents and enter the total credit amount on line 91 of the T3 return.
b) If a member of a QJO partnership, claim the allocated credit from the partnership on line 91 with a valid T5013.
Documentation Needed:
Applicants must provide:
1. A Corporation – a completed T2SCH58;
2. A Partmership – a completed T5013SCH5;
3. A Trust organization – T3 Trust Income Tax and Information Return; and
4. other supporting documents.
Other Things to Note:
About the author
Maurice
