Film or Video Production Tax Credit

The Film or Video Production Tax Credit is a mechanism designed to encourage the employment of Canadians, by a corporation (a taxable Canadian corporation or a foreign-owned corporation). In return for hiring Canadian residents to perform work in Canada, the "eligible production corporation" may be entitled to a credit against taxes payable in Canada.

Eligibility Criteria

The Film or Video Production Services Tax Credit is jointly administered by the Department of Canadian Heritage through the offices of the Canadian Audio-Visual Certification Office (CAVCO) and the Canada Revenue Agency.

The Canada Revenue Agency is charged with the legislative requirement of determining if the corporation which claims a Film or Video Production Services Tax Credit is an "eligible production corporation" throughout the taxation year in which production occurs. "Eligible production corporation" for a taxation year means a corporation (a taxable Canadian corporation or a foreign-owned corporation), the activities of which in the year are primarily the carrying on through a permanent establishment (as defined by regulation) in Canada of a film or video production business or a film or video production services business.

Summary

The tax credit is available on a yearly basis for labour-related expenditures incurred in respect of an "accredited production" and may be claimed by the "eligible production corporation" when it files its corporate tax return for the year. The tax credit amount will be in respect of eligible amounts paid in that year or within 60 days after the end of that year for labour incurred in that year. Where a corporation has no taxes payable in the particular taxation year in question, the amount deemed as a credit under the tax credit is refundable to the corporation. In such a case, a cheque will be issued to the corporation after an assessment by the Canada Revenue Agency.

For more information, you may contact the Canadian Audio-Visual Certification Office or visit the CAVCO Web site.

Manitoba Contact(s):
See National Contact.

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National Contact(s):
Canadian Audio-Visual Certification Office (CAVCO)
Canadian Heritage
4th Floor
100 Sparks Street
Ottawa, Ontario  K1A 0M5
Telephone: 613-946-7602
Toll-free (information): 1-888-433-2200
Web site: http://www.canadianheritage.gc.ca/cavco