Edmonton Film or Video Production Services Tax Credit & Accountant

Bomcas Canada is Edmonton Film or Video Production Services Tax Credit Accountant. In Canada, the supply of film or video production services is accomplished through the operation of a permanent establishment. The Film or Video Production Services Tax Credit (PSTC) is a refundable tax credit designed to encourage the hiring of Canadians by taxable Canadian corporations or foreign-owned corporations (the “eligible production corporation”) whose primary activities in the year are the operation of a film or video production business or the provision of film or video production services through a permanent establishment in Canada. The PSTC is available to eligible production corporations that hire Canadians during the year.

In accordance with the Production and Services Tax Credit (PSTC), qualifying production companies that employ Canadians in the course of their normal operations are eligible to receive a tax credit. It is possible that a corporation, in exchange for hiring Canadian citizens and permanent residents to work in Canada, will be eligible for a tax credit in the country in which the corporation is headquartered. Working jointly, the Department of Canadian Heritage (DCH), the Canadian Audio-Visual Certification Office (CAVCO), and the Canada Revenue Agency (CRA) oversee the administration of the PSTC programme, which is supported by the federal government (CRA).

In accordance with the general information provided in these instructions, they will assist you in filing an application to CAVCO for a “authorised film or video production certificate” (Accreditation Certificate). Part I – Conditions provides in-depth descriptions of the different qualifying requirements for a production, as well as an overview of CAVCO’s administration of the PSTC programme. Part II – Qualifications offers in-depth descriptions of the various qualifying requirements for a production. Before submitting an application, make sure to read the section headed “Part II – How to Apply” in this handbook first. Please get in touch with us if you have any questions. Regarding definitions of genres and other pertinent programme terms, please refer to the CAVCO’s CPTC programme rules for further information (available online). Regarding the aims of the PSTC, the CAVCO will use these definitions whenever they are appropriate in order to achieve those goals.

It is specifically governed by Section 125.5 of the Income Tax Act (the “Act”) and Section 9300 of the Income Tax Regulations (the “Regulations”), both of which can be found in the Income Tax Act (the “Act”) (the “Regulations”). It is as a result of these requirements that the Act and Regulations have become superfluous. The full text of the Act and Regulations can be viewed on CAVCO’s website, which can be accessed at www.canada.ca/cavco/english. The Act and Regulations are available in English only. It is only possible to obtain a copy of the Act and Regulations in English.

The CAVCO issues a Certificate of Accreditation for any production that meets the requirements of Section 9300 of the Regulations and qualifies as a “accredited production.” The Certificate of Accreditation is valid for one year. When it comes to productions, CAVCO only provides a single certificate to the copyright owner, as opposed to the reality that any number of eligible production corporations can provide services for a production. This is true regardless of whether or not the company is a qualified production corporation under the Internal Revenue Code. For all service providers, it is their obligation to guarantee that the copyright holder submits an application to CAVCO and provides them with a copy of the certificate, in order for them to be able to claim the appropriate share of the PSTC from the Canadian Revenue Agency, as described above (CRA). Particularly significant is the fact that the term “copyright owner” is used throughout these regulations in order to refer to both a single copyright owner and a group of copyright owners who share ownership of a production. Understanding how these laws work is essential in order to comply with them (see section 2.02).

When completing its fiscal year corporate tax return, the qualifying production corporation must additionally include the CRA Form T1177 “Claim for a film or video production services tax credit” and any other permitted papers in addition to the Accreditation Certificate. An audit of the corporation’s compliance with the program’s eligibility standards will be performed, as well as a computation of the amount of PSTC the corporation is qualified to receive.

In the case of an eligible production corporation that incurs “qualified Canadian labour expenditure” in connection with the production of a certified production, the credit can be claimed at a rate of 16 percent of the “qualified Canadian labour expenditure” incurred by the corporation for services provided in Canada by Canadian residents or taxable Canadian corporations (in the case of amounts paid to Canadian residents). With regard to a production, the qualifying Canadian labour expenditure is the sum of all “Canadian labour expenses,” less any aid (such as other provincial tax credits) that has been obtained for these charges incurred in the course of the production. There is no limit to the number of PSTC credits that can be earned by a single production under this scheme, and there is no limit to the total number of credits that can be obtained. Following the receipt of the Canadian Film or Video Production Tax Credit (as defined in section 125.4 of the Act), it is not possible for a production to be eligible for the PSTC, according to the Act’s provisions.

Source of Information: Application guidelines – Film or Video Production Services Tax Credit – Canada.ca

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