A strong and independent news industry is essential to a well-functioning democracy. In today’s changing news landscape, Canadian news outlets need support as they evolve to meet the demands of a globalized, digital marketplace.

In Canada’s Budget 2019, the Government of Canada introduced three new tax measures to support Canadian journalism organizations that produce original news content. The three separate tax measures are:

• The Canadian journalism labour tax credit, a 25% refundable tax credit on salaries or wages payable in respect of an eligible newsroom employee for periods beginning on or after January 1, 2019;

• The digital news subscription tax credit, a 15% non-refundable personal income tax credit for digital news subscription costs paid by an individual to a qualified Canadian journalism organization (QCJO), which applies to qualifying amounts paid after 2019 and before 2025; and

•  A new type of qualified donee called a registered journalism organization for not-for-profit journalism organizations, which is in effect as of January 1, 2020.

To take advantage of these measures, journalism organizations must first be designated as a QCJO. Journalism organizations must apply to the Canada Revenue Agency (CRA) to obtain the QCJO designation by completing an application form and returning it to the CRA. Applications for QCJO designation will be reviewed in consultation with an independent Advisory Board (Board). The Board will make recommendations on whether an organization meets certain QCJO designation criteria.

The publication Guidance on the income tax measures to support journalism is now available on Canada.ca.