Canada 🇨🇦

Canada offers a variety of federal and provincial tax credits and cash rebates to support both domestic and international film and television productions.

1. Canada Tax Credit Film Incentives

Tax Credits:

• Federal and provincial tax credits are available for eligible production expenditures.

Cash Rebates:

• Some provinces provide cash rebates for qualifying expenses.

2. Detailed Breakdown of the Film Incentive

Federal Incentives

Canadian Film or Video Production Tax Credit (CPTC):

• Rate: 25% of eligible Canadian labor expenditures.
• Eligibility: Reserved for Canadian-controlled productions meeting specific Canadian content requirements.

Film or Video Production Services Tax Credit (PSTC):

• Rate: 16% of eligible Canadian labor expenditures.
• Eligibility: Open to both Canadian and foreign productions.

Provincial Incentives

Ontario Film and Television Tax Credit (OFTTC):

• Rate: 35% of eligible Ontario labor expenditures.
• Regional Bonuses: Additional bonuses for shooting outside the Greater Toronto Area.

British Columbia Film Incentive BC (FIBC):

• Rate: 35% on eligible labor.
• Bonuses: Regional and digital animation enhancements available.

Quebec Refundable Tax Credit for Film Production Services:

• Rate: 20% on eligible expenditures.
• Additional Bonus: 16% for computer-aided animation and special effects.

Additional Provincial Programs:

• Manitoba, Nova Scotia, Alberta, and Others:
  • Offer tailored tax credits or rebates with regional bonuses for filming in rural areas or employing local talent.

3. Terms and Conditions Associated with the Incentives

General Eligibility:

• Productions must incur eligible labor or service expenditures in Canada.
• Canadian tax credits often require key production personnel to be Canadian citizens or residents.

Canadian Content Requirements (CPTC):

• Projects must meet a minimum threshold of Canadian content, certified by the Canadian Audio-Visual Certification Office (CAVCO).

Provincial Variations:

• Provinces may require productions to:
  • Film a certain percentage of scenes locally.
  • Use local production services and talent.

4. Governing Body for the Incentive

Federal Level:

• Canadian Audio-Visual Certification Office (CAVCO): Certifies projects for CPTC and PSTC programs.
• Canada Revenue Agency (CRA): Processes and issues tax credits.

Provincial Level:

• Provincial Film Commissions: Oversee regional tax credit programs, assist with permits, location services, and provide local funding opportunities.

5. Process/Outline for Applying or Being Eligible for the Incentive

1. Pre-Production:

• Research available incentives at federal and provincial levels.
• Ensure the project meets eligibility criteria, including Canadian content requirements (if applicable).

2. Application Submission:

• Submit the application to:
  • CAVCO for federal programs.
  • Relevant provincial film commission for regional programs.
• Required documentation includes:
  • Project synopsis.
  • Detailed budget.
  • Proof of financing.
  • Residency documentation for key personnel.

3. Certification and Approval:

• CAVCO certifies eligible projects for federal incentives.
• Provincial commissions provide similar approvals for regional programs.

4. Production and Documentation:

• Track qualifying expenditures during production.
• Maintain records of labor costs, service contracts, and other eligible expenses.

5. Final Submission:

• Submit audited cost reports to CAVCO or the provincial commission.
• File for tax credits with the CRA or provincial tax authority.

6. Disbursement:

• Approved tax credits or rebates are issued and can be:
  • Applied against income tax liabilities.
  • Refunded directly.

Resources for More Information

• CAVCO Website: Canadian Audio-Visual Certification Office
• Provincial Film Commissions: Each province has its own dedicated film office for specific regional guidelines.