Ontario Book Publishing Tax Credit (OBPTC)

By mmuise
Description:

The Ontario book publishing tax credit is a refundable tax credit of 30% on the qualifying pre-press, printing and marketing expenditures incurred during a tax year for an eligible literary work, by an Ontario book publishing company, up to a maximum credit of $30,000 per work.


Comments on Funding:

Funding is a 30% refundable tax credit up to $30,000 per literary work

Deadline: Rolling deadline
Eligibility:

The applicant must:

  • be a Canadian-controlled corporation throughout the tax year, as determined under sections 26 to 28 of the Investment Canada Act;
  • carry on a book publishing business primarily through a permanent establishment in Ontario for the tax year;
  • file an Ontario corporate tax return;
  • allocate more than 50% of its taxable income to Ontario in the taxation year the credit is being claimed;
  • have published at least two books in the previous year. An exception is made regarding the requirement to have published two books in the previous year where an Ontario book publishing company has transferred its business, amalgamated or wound up its company;
  • not be controlled by the author of the literary work, or by a person not dealing at arm's length with the author;
  • not be exempt from tax under Part III of the Taxation Act, 2007 (Ontario) for the tax year.
Application Steps:

The applicant must:

1. apply via the Ontario Creates Online Application Portal (OAP) for a certificate of eligibility,

2. pay the administration fee at the time the OBPTC application is submitted;

3. file the certificate of eligibility (or copy) and a completed Schedule 564, Ontario Book Publishing Tax Credit together with the tax return in order to claim the Ontario Book Publishing Tax Credit.



Fees:

1. The administration fee is calculated as 0.15% of the Total Estimated Eligible Expenditures for the application. The minimum fee is $50 and the maximum fee is $200 per literary work.

2. There is an additional filing fee of $100 applied per literary work to applications for Certificates of Eligibility received more than 24 months after the first year-end of the claim.

3. An amended Certificate of Eligibility replaces any Certificate of Eligibility previously issued. There is a fee of $100 for each amended Certificate of Eligibility.

Documentation Needed:

To claim the credit, the following documentation is needed: 1. the T2 Corporation Income Tax Return form for the year,
2. a certificate of eligibility (or copy) issued by the Ontario Creates,
3. a completed Schedule 564, Ontario Book Publishing Tax Credit.
The applicant must submit to Ontario Creates the following documents via the Online Application Portal (OAP):
1. Applicant Declaration completed and signed by an authorized signing officer (officer and/or director) of the book publishing company;
2. Incorporation documents for the book publishing company;
3. All applicable financial statements for the qualifying book publisher;
4. List of book publishing company's shareholders or corporate chart for applicable taxation year;
5. Previous year's catalogue(s);
6. Current year's catalogue(s);
7. Book publishing company's distribution agreement;
8. Book publishing company’s contract with the author(s)
9. Author Citizenship & Residency Declaration for all authors, completed, signed and dated
10. Printer's invoice;
11. Book in digital format (such as an EPUB or PDF file).
All documentation or information received from an applicant is subject to the confidentiality provisions of the Taxation Act and will be maintained in strictest confidence by Ontario Creates, the Ministry of Finance and the Canada Revenue Agency.

Other Things to Note:

Guidelines updated January 2023.

About the author
mmuise