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QUEBEC’S DIGITAL INDUSTRY: OVERVIEW AND TAX INCENTIVES

QUEBEC’S DIGITAL INDUSTRY: OVERVIEW AND TAX INCENTIVES. Marie Claude Bernard, Director Montreal International Game Summit Alliance Jeu @mcbernard. Videogames and animation in Quebec A global overview. Quebec, Cradle of Digital Animation.

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QUEBEC’S DIGITAL INDUSTRY: OVERVIEW AND TAX INCENTIVES

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  1. QUEBEC’S DIGITAL INDUSTRY:OVERVIEW AND TAX INCENTIVES Marie Claude Bernard, DirectorMontreal International Game SummitAlliance Jeu @mcbernard

  2. Videogames and animation in QuebecA global overview

  3. Quebec, Cradle of Digital Animation • End of 1940s: The National Film Board of Canada • 1970: Robert Forget and “Centre Animatique” • 1986: Daniel Langlois and Softimage • 1994: Acquisition of Softimage by Microsoft • 2001 Avid buys Softimage

  4. Since then A 600% growth since 2003

  5. And today… / 7,000 jobs / 3rd cluster in the world per capita / Over 100 companies / International leaders / 3 new international companies opened up shop in Montreal in 2010

  6. VFX in Quebeca global overview

  7. The cluster / Client type: local and foreign film and television producers / Companies: over 40 visual effects and animation studios / Workforce: 2 000 direct industry related positions

  8. Quebec: A success StoryOk, but why?

  9. An ideal location • An education system focused on the industry’s needs • A very attractive location for employees • A highly creative workforce

  10. A cost effective location 26,8% lower than Europe 25,5% lower than the USA

  11. Funding a transmedia project in quebec – tax incentives

  12. Multimedia Title Production Tax Credit (Quebec) • To foster development of the video game industry and certain distribution platforms • Video game production activities • Credit of up to 37.5% on total salaries and contractors • Refundable

  13. Scientific Research & Experimental Development (Canada) • Federal (Canada) R&D tax credit rate ranges from 20% to 35% • Refundable or not • Salaries, contractors, materials, capital equipment • Proxy amount (65% of salaries incurred)

  14. Scientific Research & Experimental Development (Quebec) • Québec tax credit rate ranges from 17.5% to 37.5% • Refundable • Salaries and contractors

  15. Comparative Table

  16. Comparative Table

  17. University and Pre-Competitive Research Tax Credits (Quebec University • 28% of total R&D expenses (same expense base as for federal purposes) Pre-competitive research • 35% of total R&D expenses (same expense base as for federal purposes) • To promote R&D partnerships amongst corporations

  18. E-business Tax Credit (Quebec) • Eligible information technology activities • 30% credit rate • Refundable • Maximum of CDN$66,667 per employee (credit of CDN$20,000) • Can be cumulated with R&D credit (different activities)

  19. Foreign Researcher Tax Holiday (Québec) Foreign Researcher Tax Holiday (Québec) • 5-year personal Québec tax holiday (up to 24%)

  20. Canada Media Fund • To champion the creation of successful, innovative Canadian content and software applications throughfinancial support and industryresearch • 2 streams : convergent and experimental • 330M$: 27M$ for the experimentalstream

  21. Quebec Tax Credit for Film Production Services • 25% of eligible all-spend production costs including qualified labour costs and costs of qualified properties • Improvement for computer-aided special effects and animation and shooting of scenes in front of a chroma-key : extra 20% of qualified labour costs

  22. Refundable Tax Credit for Film Dubbing • 30% of qualified expenditures

  23. Canadian Video of Film Production Tax Credit • 25% of qualified labour expenditures

  24. Film of Video Production Services Tax Credit • 16% of qualified Canadian labour expenditures • To encourage the employment of Canadians

  25. For more information… Marie Claude Bernardmcbernard@alliancenumerique.com@mcbernard

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