What are the requirements for a person to be considered “BC labour”?
The individual must be resident in BC and ordinarily resident in Canada as of December 31 of the year preceding the end of the fiscal year for which the tax credit is being claimed.
For example, if the production corporation fiscal year end is March 31, 2020, the person must be resident in BC as of December 31, 2019 to be part of the corporation’s BC labour for that tax year.
Note that it must be established that the individual is also a resident of Canada when they have recently moved to Canada. This is assessed by the Canada Revenue Agency based on a number of factors indicating that the individual is not in Canada temporarily. Paying tax in BC in the previous calendar year is a good indicator but is not necessarily the determining factor that the individual is a resident of BC for the purposes of the tax credit. To determine if the individual is resident of Canada, refer to the CRA’s guidelines on Resident Status and Tax Obligations.
Also note that under the PSTC, the BC labour costs need to be incurred in BC to be included in BC labour.
For further information, please refer to the CRA residency guidelines or contact the CRA Film Services Unit at 1-866-317-0473.