How do we claim Marketing and Distribution costs incurred after the tax year end in which a product is completed?
For non-specified products, your company can claim up to $100,000 in eligible marketing and distribution (M&D) costs per product. M&D costs can be claimed for the period 24 months prior to the completion date and 12 months after the completion date. If there are some eligible M&D costs that fall in a subsequent taxation year that relate to a non-specified product, your company should include those M&D costs in a separate OIDMTC claim for that subsequent taxation year.
For example, a non-specified product is claimed in your 2016 taxation year and there are eligible M&D costs that are directly related to this product that fall in your 2017 taxation year. You should prepare a separate 2017 OIDMTC application and include those M&D costs in a 2017 claim along with any other completed products eligible for the OIDMTC. Please note that when using the Online Application Portal there is an option to choose “Non-Specified (93) M&D Only” as a product type in these cases where you are claiming M&D costs only, for a non-specified product claimed in a previous OIDMTC application.