Film or Video Production Services Tax Credit
Highlights
The Film or Video Production Services Tax Credit (PSTC) is a fantastic opportunity for your business. This program offers a 16% tax credit on qualified Canadian labor expenditures for accredited productions. This means significant savings on your production costs, allowing you to reinvest in your projects and grow your business.
Why apply?
- Financial Benefits: The tax credit can substantially reduce your production expenses.
- Industry Growth: By participating, you contribute to strengthening the Canadian film and video industry.
- Investment Attraction: Enhanced financial stability can attract more investors to your projects.
What's in it for you?
- Ease of Application: The process is straightforward, with ongoing application acceptance.
- Support: The program is co-administered by the Canadian Audio-Visual Certification Office and the Canada Revenue Agency, ensuring you have the backing of reputable institutions.
- Long-term Benefits: Approval can lead to sustained growth and more opportunities in the industry.
Applying for the PSTC is a strategic move to enhance your production capabilities and secure a competitive edge in the market.
Financing Details
Type of Financing:
- Tax Credit: The program offers a tax credit at a rate of 16% of the qualified Canadian labour expenditures incurred in respect of an accredited production.
Eligible Expenses:
- Qualified Canadian Labour Expenditures: These include wages and salaries paid to Canadian residents for work performed on the accredited production.
Use of Funds:
- The tax credit can be used to offset the costs associated with Canadian labour expenditures. This includes:
- Salaries and wages of Canadian residents.
- Payments to Canadian freelancers and contractors involved in the production.
Restrictions on Use of Funds:
- The tax credit cannot be used for non-labour expenses such as:
- Equipment purchases.
- Travel costs.
- Marketing and distribution expenses.
Fees:
- Application Fee: There is an application fee required to process your tax credit claim. The exact amount will be specified during the application process.
Qualifications
- Must be a taxable Canadian corporation or a foreign-owned corporation.
- Must be engaged primarily (more than 50%) in the activities of a film or video production business, or a film or video production services business, through a permanent establishment in Canada.
Must be the owner of the copyright in the accredited production throughout the period during which the production is produced in Canada, or have contracted directly with the copyright owner of the production to provide services for the production.
Disqualifications:
- None specified.
Description
This program offers your business a tax credit of 16% on qualified Canadian labor expenses for film or video productions. This means you can get back a portion of what you spend on hiring Canadian workers for your projects.
Key benefits include:
- Financial Support: You can receive a significant tax credit, which reduces your overall production costs.
- Flexibility: The credit applies to a wide range of labor expenses, making it easier to manage your budget.
- Industry Growth: By participating, you contribute to strengthening the Canadian film and video production industry.
The money you get back can be used to reinvest in your business, hire more talent, or improve production quality. This program is designed to make Canada an attractive place for film and video production, ensuring your business thrives in a supportive environment.
Program Steps
Read the Application Guidelines: Carefully read the application guidelines in their entirety to understand the requirements and process.
Create a CAVCO Online Account: Register for an account on the CAVCO Online platform to start your application.
Complete the Official Designee Form: If applicable, fill out the Official Designee form to designate an official representative for your application.
Prepare Required Documentation: Gather and prepare the necessary documents for your application, including:
- Corporate documentation (Name and contact information of copyright owners, official designee information)
- Financial information (Budget or top-sheet, total Canadian expenditures)
- Production details (Synopsis, production type, target market, production format, number of shooting days in Canada, primary location of shooting)
- Chain-of-title documents (Ownership history, percentage of ownership of each copyright holder)
- Episode titles, if requested by a program officer
Complete the Online Application: Fill out the online application form on the CAVCO Online platform, providing all required information and documentation.
Pay the Application Fee: Submit the application fee as required to process your application.
Submit the Application: Once all forms are completed and documents are prepared, submit your application through the CAVCO Online platform.
Await Processing: The Canadian Audio-Visual Certification Office (CAVCO) will process your application. The service standard for processing is 176 calendar days, with a performance target of meeting this standard 85% of the time.