Line 798 - Canadian journalism labour tax credit
Line 798 - Canadian journalism labour tax credit
The Canadian journalism labour tax credit is a refundable tax credit available to qualifying journalism organizations (QJO).
The amount of the credit is set at 25% of qualifying labour expenditures for a tax year, for an eligible newsroom employee. The maximum credit available is $13,750 for each eligible newsroom employee per year. The credit amount is reduced by the amount received from the Aid to Publishers component of the Canada Periodical Fund.
Note
As a temporary measure for four years, the cap on
labour expenditures per eligible newsroom employee is
increased from $55,000 to $85,000. As well, the tax credit
rate is increased from 25% to 35%. These changes apply
to qualifying labour expenditures incurred after 2022.
The rate will return to 25% for expenditures incurred
after 2026. Transitional rules apply to prorate these
changes if an organization's tax year does not follow a
calendar year.
To be a QJO, as defined in subsection 125.6(1), the organization must be a qualified Canadian journalism organization (QCJO), as defined in subsection 248(1), and must also meet both of the following additional criteria:
-
it does not hold a licence, as defined in subsection 2(1) of the Broadcasting Act
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if it is a corporation having share capital, it meets the conditions in subparagraph (e)(iii) of the definition of Canadian newspaper in subsection 19(5)
To be a QCJO, an organization must apply for and be designated as a QCJO by the minister of National Revenue. An organization is deemed to have become designated as a QCJO on the date that it applies for designation with the CRA, unless otherwise specified by the minister. The CRA can revoke a QCJO's designation when it no longer meets the eligibility requirements, but the CRA must consider any advice provided by an advisory board before revoking an organization's designation.
A credit can be claimed by a member (other than a partnership member and a specified member) of a QJO that is a partnership, based on the relative specified proportions, as defined in subsection 248(1) of the Income Tax Act, of each qualifying member for the relevant fiscal period. The credit allocated by the partnership to the partner is taxable to the partner and the partner must include it in their business income in the same tax year.
For details on how to apply for designation as a QCJO, go to canada.ca/support-canadian-journalism and select "Qualified Canadian journalism organization".
A QCJO can go to canada.ca/support-canadian-journalism and select "Canadian journalism labour tax credit" for more information on eligibility for claiming the refundable tax credit and for details on calculating the credit.
To claim the credit, file a completed Schedule 58, Canadian Journalism Labour Tax Credit, with your return for the year.
On line 798 of the return, enter the amount of the credit you are claiming.
References
Section 125.6
Subsection 248(1)
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