Under section 85(1) of the Income Tax Act of British Columbia, corporations filing a claim for the British Columbia film and television tax credit (BCFTTC – FIBC) must submit a Completion Certificate with their T2 corporation income tax return if the production was completed in the related tax year. To make sure that claimants receive the tax credit to which they are entitled, an Eligibility Certificate alone will no longer be accepted for the tax year a production is completed.
Going forward, a Completion Certificate will be required for productions that are completed in a tax year. To help applicants adjust to the new process, the Canada Revenue Agency (CRA) has implemented a transition period.
The CRA is offering the transition period until March 31, 2023, to give BCFTTC (FIBC) claimants time to adapt to this filing requirement. During this period, the CRA will accept either an Eligibility Certificate and/or a Completion Certificate for BCFTTC (FIBC) claims for the tax year a production is completed. However, if a final-year claim is processed with only an Eligibility Certificate, the production must still get a Completion Certificate within the legislated time period that applies:
- 18 months from the tax year when the qualified BC labour expenditure was incurred, or
- 30 months from the end of the tax year in which principal photography of the production began
The CRA encourages corporations to apply for a Completion Certificate with Creative BC as soon as possible to avoid delays and reduce the risk of losing tax credits for which they may otherwise be eligible.
To find out more, visit: What’s new – Film and media tax credits