OCASE COVID-19

• To be a qualifying corporation for purposes of claiming the OCASE tax credit, a company must have performed eligible computer animation and special effects activities at a permanent establishment it operates in Ontario. Qualifying wage amounts must be paid to employees who reported to the permanent establishment in Ontario of the qualifying corporation (the OCASE applicant company) where the eligible computer animation and special effects activities were undertaken. Qualifying remuneration amounts must be paid for activities undertaken at a permanent establishment in Ontario of the qualifying corporation (the OCASE applicant company), an Ontario resident individual who is not an employee of the OCASE applicant, or an eligible partnership.

  Employees and contractors may work remotely and not be physically present at the permanent establishment of the OCASE applicant, especially in light of social distancing and provincial health and safety requirements due to COVID-19. Wages and remuneration for employees and contractors working remotely will be considered eligible labour expenditures (assuming all other requirements are met) so long as the individuals are reporting to and under the direction of the OCASE applicant and the activities are undertaken in Ontario.