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
Did you know that Creative BC now accepts fee payment via e-transfer? See our updated Payment Options for PSTC and FIBC applications. Creative BC continues to accept payment via cheque, money order, direct deposit, or wire transfer as well. See PSTC Fee...
Are you planning your next Canadian content film? Be sure to know the initial licensing rule. Under Film Incentive BC, for productions that are not treaty co-productions or interprovincial co-productions, the initial licensing of the commercial exploitation of the...
In your FIBC tax credits applications, Creative BC is looking to see that there is a written agreement with a Canadian-controlled distributor or broadcaster to have the production shown in Canada within 24 months of completion. We sometimes receive questions about how...
Important message regarding Pre-Certification
Productions that incurred first accredited BC labour expenditures before February 22, 2022 but after June 30, 2020 have 60 days to file a pre-certification form (per Budget 2020). Productions that incurred first accredited BC labour expenditures on or after February 22, 2022 have 120 days to file a pre-certification form (per Budget 2022). 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 or 120-day period, BC labour expenditures incurred prior to submitting the form will not be eligible for the PSTC. For example, if a production files their pre-certification form 150 days after their first accredited BC 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.
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*:
|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.
PSTC Pre-Certification Form
Pre-requisite for PSTC – Apply within 60 days of 1st B.C. Labour. Apply through Creative BC’s online tax credit application portal
Access the online Tax Credit Application Portal
For PSTC applicants
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
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 email@example.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 (under proposed legislation)
Recent proposed changes to the notice deadline. Details
B.C. Budget 2022 proposes that the deadline for the production services tax credits applicant to file a pre-certification form is extended 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
PSTC Pre-Certification Process
PSTC Pre-Certification Form
PSTC Pre-Certification FAQs
Tax Credits Overview
Motion Picture Tax Credit Recipients: On-Screen Credits
Basic Tax Credit
Template Production Schedule
Chain of Title
Official Designee Affidavit
Regional + Distant Tax Credits