Production Services Tax Credit

A refundable labour based tax incentive for international projects made in BC.

IMPORTANT MESSAGE REGARDING PRE-CERTIFICATION

Productions that incur their first BC labour expenditure on or after July 1, 2020 must submit a pre-certification form through the Creative BC website within 60 days after incurring the first accredited BC labour expenditure. Once the pre-certification number is issued, the production corporation may apply to Creative BC to receive an accreditation certificate for the production.

If a production company submits their pre-certification form after the 60-day period, BC labour expenditures incurred prior to submitting the form will not be eligible for the PSTC. For example, if a company files their pre-certification form 75 days after their first accredited BC labour expenditure, they will not be eligible to claim any labour expenditures that occurred within those 75 days. This in turn would reduce the production services tax credit received by the production company.


IMPORTANT MESSAGE ABOUT WHEN TO SUBMIT A FULL PSTC APPLICATION

Production companies are encouraged to apply for their tax credit certificates as soon as possible. We strongly recommend production companies submit their accreditation certificate application to Creative BC within 12 months of the corporation’s taxation year end. This is because we may require 6 months to process certificate applications. We are unable to guarantee that applications filed later will be processed in time for the production company to file with the CRA before the deadline, which may result in denied claims.


The PSTC is a refundable corporate income tax credit. When filing tax returns, your corporation may claim a specified percentage of the labour costs incurred in making a production. The credits are applied to reduce tax payable, and any remaining balance is paid to the corporation.

In order to claim the PSTC tax credits, your production corporation must file a corporate income tax return, along with the certificates, with the Canada Revenue Agency.


The PSTC is not subject to any Canadian content requirements. In addition, there is no limit on the PSTC that may be claimed on a particular production and there is no limit that a corporation or group of corporations can claim.

The program includes four initiatives: Basic, Regional, Distant Location and Digital Animation, Visual Effects and Post-Production (DAVE).

FOR PRODUCTIONS WITH A PRINCIPAL PHOTOGRAPHY START DATE AFTER SEPTEMBER 30, 2016*:

Tax Credit

Value

 Basic PSTC 28%
 Regional PSTC 6%
 Distant Location Tax Credit 6%
 Digital Animation, Visual Effects + Post-Production (DAVE) 16%

*For productions with a principal photography start date before October 1, 2016, please contact Creative BC for more information.