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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

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Important Message for Film Incentive BC Tax Credit Applicants

Production companies are encouraged to apply for their tax credit certificates as early as possible – see the recommended timelines below. This is because Creative BC 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.

PSTC Pre-assessments August 2021

To better serve all of our tax credits applicants, we have re-introduced a PSTC pre-assessments system to help ensure that applications are complete prior to an analyst being assigned for the accreditation certificate review.

Important message regarding pre-certification

The Province will be bringing legislative measures forward as part of Budget 2023 for production companies that first incurred an accredited BC labour expenditure (ABCLE) between July 1, 2020 and February 21, 2022. These measures will allow companies to claim ABCLE incurred up to 120 days prior to the pre-certification form submission date, regardless of how many days after the first incurred ABCLE the pre-certification form was filed.  If a production company has already been denied a portion of their production services tax credit claim by the Canada Revenue Agency due to the late filing of a pre-certification form, the production company can request an adjustment to their T2 Corporate Tax return.

 

Click here to learn more about these new measures.

 

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.

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.

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

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
Learn about the adjustments to both Film Incentive B.C. (FIBC) and Production Services Tax Credit (PSTC) application timelines and protocols.

 

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:

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

 

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 Affidavit

Regional + Distant Tax Credits

Template Regional Distant Location Breakdown
Regional + Distant Location Map