Did you know that you can get a 15 per cent tax credit up to $75 CAD per year between 2020 and 2024 for subscribing to any Canadian written digital news?
In March 2019, the Canadian Federal Budget introduced a new incentive for all the news junkies out there – a Digital news subscription tax credit (DNSTC). This went into effect for the 2020 calendar year, so you can save money while staying informed all year round.
How to apply for the Digital news subscription tax credit (DNSTC)?
A new form, T622, Digital News Subscription Tax Credit, and process will be published so that organizations can get confirmation that the subscriptions they offer are eligible as qualifying subscriptions. Organizations whose subscriptions no longer qualify for the credit are required to inform their subscribers.
How to claim the DNSTC?
Individuals who have entered into an agreement with a qualified Canadian journalism organization (QCJO) for an eligible subscription can claim the credit on their income tax return for the years 2020 to 2024.
You get 15 per cent back as a non-refundable tax credit on spending of up to $500 CAD, so the maximum value is a $75 CAD tax credit per year. Only the individual who has subscribed can claim the credit. If more than one individual (such as spouses, roommates, etc.) is entitled to claim, the total amount can be split between them provided that the total amount claimed is not more than the maximum amount that would be allowed if only one of them made the claim.
|Note: If your subscription includes both a digital and physical format bundled, for example, newspapers and magazines, then only the equivalent digital subscription cost can be claimed.|
As it’s a digital subscription you might be able to pull any receipts you need from your email, although it does not appear that you need to submit them as part of the return. Just make sure you keep them handy in case of an audit.
Which news subscriptions qualify?
The tax credit is only available for subscriptions with a qualified Canadian journalism organization (QCJO). A list of organizations that offer eligible qualifying subscriptions will be posted on Canada.ca.
Newspapers like The Globe and Mail, Toronto Star, National Post, will surely qualify. Niche content subscription sites like The Logic may also qualify.
Looking for the list of top newspapers in Canada?
See our article on Top paid news subscriptions in Canada for a brief overview and subscription costs for the leading newspapers in Canada.
Why has the Canadian government introduced DNSTC?
The Canadian government is trying to encourage and support Canadian journalism and the news industry that has been challenged by social media and international news outlets. For consumers, this is a great opportunity to effectively get 15 per cent off qualifying online news subscriptions while supporting Canadian content.