Film or Video Production Services Tax Credit (PSTC)

The Production Service Tax Credit (PSTC) is designed to enhance Canada as a location of choice for film and video productions employing talented Canadians, as well as strengthening the industry and securing investment. The PSTC is available at a rate of 16% of qualified Canadian labour expenditures.

Summary

The PSTC is a mechanism designed to encourage the employment of Canadians, by 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 in Canada of a film or video production business or a film or video production services business. 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.

The tax credit is available on a yearly basis for labour-related expenditures incurred with respect to 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 PSTC 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, contact CAVCO or visit their 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