Production Services Tax Credit
The Production Services Tax Credit (PSTC) is a refundable labour based tax incentive for international projects made in B.C.
Motion Picture Tax Credits
News
Important reminder for FIBC applicants: Completion certificate required in the final tax year of production after transition period
As of March 31, 2023, the transition period, with respect to the requirement that a Completion Certificate be submitted with the T2 corporate income tax return in the final tax year of the production, will be ending. Starting April 1, 2023 per section 85(1) of the...
Important message for PSTC applicants regarding pre-certification
Currently, under section 79 (1) "accredited qualified BC labour expenditure" of the Income Tax Act of British Columbia, an accredited production corporation claiming the Production Services Tax Credits (PSTC) must give notice (pre-certification) in accordance with...
Important message for FIBC applicants: CRA allows a transition period for filing requirement
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...
Important message regarding pre-certification
As previously announced, Budget 2023 proposes the legislative measures for production companies that first incurred an ABCLE between July 1, 2020 and February 21, 2022.
These proposed measures will allow companies to claim ABCLE incurred up to 120 days prior to the pre-certification form submission date, regardless of how late the pre-certification form was filed. However, accredited corporations will be unable to claim ABCLE incurred more than 120 days prior to filing the pre-certification form. This may reduce the production services tax credit available.
In advance of these proposed legislative measures being passed by the Legislature and receiving royal assent, the CRA is administering the production services tax credit using these new rules. If a production company has already been denied a portion of their PSTC claim by the Canada Revenue Agency (CRA) due to late pre-certification filing, the company can request an adjustment to its T2 corporate tax return. For more information, see Requesting a reassessment of your T2 return – Canada.ca
For productions that first incurred an ABCLE on or after February 22, 2022, these production companies are still required to submit their pre-certification form within 120 days of their first ABCLE. 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 120-day period, ABCLE incurred prior to submitting the form will not be eligible for the PSTC.
Read recent legislative changes on the BC Government PSTC webpage.
Important message about when to submit a full PSTC application
Production companies are encouraged to apply for their tax credit certificates as soon as they have locked budget and principal photography or key animation started. 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 up to 4 months to process complete 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.
About PSTC
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 after September 30, 2016
*For productions with a principal photography start date before October 1, 2016, please contact Creative BC for more information.
Apply Online
PSTC Pre-Certification Form
Pre-requisite for PSTC – Apply through Creative BC’s online tax credit application portal
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Access the online Tax Credit Application Portal
For PSTC applicants
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Additional Resources
Contact the Motion Picture Tax Credit Team
taxteam@creativebc.com
Contact staff directly
Biljana Radovic| Manager, Motion Picture Tax Credits
Tel: +1 604 730 2232
bradovic (at) creativebc.com
Joanne Chow | Senior Business Analyst, Motion Picture Tax Credits
Tel: +1 778 657 6278
jchow (at) creativebc.com
Lea Chambers | Senior Business Analyst, Motion Picture Tax Credits
Tel: +1 604 730 2252
lchambers (at) creativebc.com
Andrée Laplante | Business Analyst, Motion Picture Tax Credits
Tel: +1 604 262 8678
alaplante (at) creativebc.com
Patricia Lee | Business Analyst, Motion Picture Tax Credits
Tel: +1 236 471 0786
plee (at) creativebc.com
Derek Clayton | Business Analyst, Motion Picture Tax Credits
Tel: +1 236 471 0877
dclayton (at) creativebc.com
Troy Taillon | Business Analyst, Motion Picture Tax Credits
Tel: +1 236-471-0681
ttaillon (at) creativebc.com
Shannon Hunt | Coordinator, Motion Picture Tax Credits
Tel: +1 236 471 0138
shunt (at) creativebc.com
Application Fee
PSTC Tax Credit Application Fee Increase 2020
The schedule of timelines and dates relevant to change is as follows:
|
Projects that start Principal Photography on or after February 19, 2020 |
$10,000 fee + GST |
| Projects that start Principal Photography prior to February 19, 2020 | $5,500 fee + GST |
Please note that all applications are subject to GST (unchanged)
Please contact taxteam@creativebc.com with any questions or comments.
B.C. Budget 2020
Deadline to Claim Reduced to 18 mos. Details
With the recent announcement of B.C.’s Budget & Fiscal Plan 2020, one new and two previous announcements should be noted by applicants to B.C. motion picture tax credit programs:
- New: Effective for taxation years beginning after February 18, 2020, the deadline to file a claim with CRA for the Film Incentive BC and the Production Services Tax Credit programs is reduced to 18 months.
- Previously Announced:Effective July 1, 2020, pre-certification notification has been introduced for corporations intending to claim the production services tax credit. Previously announced on September 24, 2019
- Previously Announced: Effective February 19, 2020, the accreditation certificate fee for the production services tax credit is increased.
For details, please visit the Tax Credit Program pages on our website. Thank you for your ongoing collaboration, the Creative BC team looks forward to enhancing our services.
B.C. Budget 2022
Recent changes to the notice deadline. Details
B.C. Budget 2022 extends the deadline for the production services tax credits applicant to file a pre-certification form from 60 to 120 days effective February 22, 2022.
This impacts productions that first incur accredited BC labour expenditures on or after February 22, 2022 and they must give a notice by submitting a pre-certification form through the Creative BC website within 120 days after incurring the first accredited B.C. labour expenditure.
Productions that first incurred accredited B.C. labour expenditures before February 22, 2022 but after June 30, 2020 have 60 days to file a pre-certification form (per Budget 2020).
If a pre-certification form is not submitted within the specified number of days, production companies are unable to claim labour expenditures incurred prior to filing the form.
For example, if a company files their pre-certification form 150 days after their first accredited B.C. labour expenditure, they will not be eligible to claim any labour expenditures that occurred within those 150 days. This in turn would reduce the production services tax credit that the production company would receive.
Once the pre-certification number is issued, the production corporation may apply to Creative BC to receive an accreditation certificate for the production.
To find out more, visit: https://www2.gov.bc.ca/gov/content/taxes/income-taxes/corporate/credits/production-services
B.C. Budget 2023
Proposed Budget 2023. Details
Effective July 1, 2020, the Income Tax Act’s production services tax credit is amended to allow corporations to claim labour expenditures incurred up to 120 days prior to the pre-certification form submission date under the credit, regardless of how late the pre-certification form was filed. This will only apply to film productions that incurred their first eligible accredited labour expenditure between July 1, 2020, and February 21, 2022. Read Budget and Fiscal Plan 2023/24 – 2025/26 (gov.bc.ca).
As previously announced, Budget 2023 proposes the afore-mentioned legislative measures.
PSTC Pre-Certification Process
PSTC Pre-Certification Form
PSTC Pre-Certification FAQs
Tax Credits Overview
PSTC Summary
Application Checklist
Motion Picture Tax Credit Recipients: On-Screen Credits
Fee Schedule
Basic Tax Credit
Template Production Schedule
PSTC Calculator
Chain of Title
Official Designee Declaration
Regional + Distant Tax Credits