Tax Credits
 
Foreign and domestic productions in British Columbia can access a variety of provincial and deferal tax credit programs and if eligibility requirements are met, a producer can combine them to access exceptional savings. Some of the tax incentives available are described below. 

Copies of the tax credit guidelines, legislation, regulations and application forms may be obtained from the CreativeBC - BC Film + Media website at http://www.bcfm.ca.

NOTE: The information provided below is only intended to provide an overview of the tax credits. Although the information gathered in this section is believed to be correct at the time of publication, the Chilliwack Film Commission, the City of Chilliwack, and Chilliwack Economic Partners Corporation cannot be held responsible for any omissions or incorrect information. 

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The British Columbia Production Services Tax Credit (PSTC) encourages film, television and animation production in BC and is available to either international or Canadian productions produced in British Columbia.

There are four components:

  1. The BASIC PSTC tax credit is 33% of qualified BC labour expenditure.
  2. The REGIONAL tax credit is 6% of qualified BC labour expenditures of the corporation pro-rated by the number of days of principal photography in BC outside of the designated Vancouver area to the total days of principal photography in BC.
  3. The DISTANT Location tax credit is 6% and is added to the regional tax credit for principal photography done outside of the Lower Mainland, north of Whistler and east of Hope, excluding the Capital Regional District.
  4. The DIGITAL ANIMATION or VISUAL EFFECTS tax credit is 17.5% of BC labour expenditures directly attributable to digital animation or visual effects activities. 

For more information on British Columbia's process, eligibility and time lines, contact the program administrator:

British Columbia Film:
Tel. 604-736-7997
bcf@bcfilm.bc.ca


The Canadian Federal Government's Film or Video Production Services Tax Credit (PSTC) is primarily for foreign production and is 16% of Canadian labour costs. For more information on Canadian federal tax credits contact:

(CAVCO) Canadian Audio-Visual Certification Office:
Tel: 888.433.2200
www.pch.gc.ca/cavco Canadian Federal Tax Credit


British Columbia Tax Credits Available to Domestic Film and Television Productions

British Columbia offers two tax credit programs:

  1. Film Incentive BC (FIBC) is for domestic productions that are Canadian owned and controlled and have qualifying levels of Canadian content.
  2. Production Services Tax Credit (PSTC), is open to both domestic and foreign producers, and has no Canadian content requirements.

A production corporation may only access either the FIBC or the PSTC program, but not both with respect to a production.


Film Incentive BC Tax Credit Rate

Film Incentive BC will refund a portion of labour expenditures incurred in making film or television productions in British Columbia. There is a basic incentive of 35% (up from 30%) of eligible labour costs until April 2013.

In addition, there are four bonus incentives:

  1. A regional production incentive allows producers to claim a refund of 12.5% of eligible labour costs for doing principal photography in the nearby region. Producers can claim 18.5% of eligible labour costs for doing principal photography in the distant region. This incentive must be accessed in conjunction with the Basic Tax Credit.
  2. A training incentive allows producers to claim a refund of 30% of trainee salaries, capped at 30% of eligible labour costs for providing training opportunities for workers enrolled in an approved training program. This incentive must be accessed in conjunction with the Basic Tax Credit.
  3. A Digital Animation or Visual Effects (DAVE)* tax credit of 17.5 percent: The BC Labour expenditures directly attributable to digital animation or visual effects activities. This tax credit must be accessed in conjunction with the Basic tax credit.
  4. The CDN Federal Production Tax Credit (CPTC)** of 25% is for qualified Canadian expenditures of the corporation.

* This rate is effective for productions that begin principal photography after February 28, 2010.

** The Canadian Federal CPTC is in addition to the provincial tax credits.

For More Information:

See BC Film + Media Web site http://www.bcfm.ca or email them bcfm@bcfm.ca, to request one of their Tax Credit Program Packages. Note that this credit is also known as the Film and Television Tax Credit. 


Production Services Tax Credit (Provincial)

This tax credit is also available to foreign film companies.

The Production Services Tax Credit program is a refundable tax credit, equal to 25% of qualifying labour expenditures incurred in BC and paid to BC residents in making a film or television production.


Regional Production Services Tax Credit

The Regional Production Services Tax Credit Program is a refundable tax credit equal to 6% (in the nearby region) and 12% (in the distant region) of qualified BC labour expenditure pro-rated by the number of days of a principal photography in British Columbia outside of the designated Vancouver area to the total days of a principal photography in British Columbia.

For More Information:

See BC Film's Web site  www.bcfm.ca or email them at bcfm@bcfm.ca, to request one of their Tax Credit Program Packages.


Canadian Film or Video Production Tax Credit (Federal) (FTC)  
 
This tax credit is available to foreign film companies -- as co-producers only. The objective of the CPTC is to encourage Canadian programming and to develop an active domestic production sector.

This credit is available at a rate of 25% of qualified labour expenditures expended after 1994 by a qualified corporation for the production of a Canadian film or video production.

Eligible salaries and wages qualifying for the credit may not exceed 60% of the production net of assistance, as certified by the Minister of Canadian Heritage. The credit will, therefore, provide assistance of up to 15% of the cost of production, net of assistance.

For More Information:

Contact the Canadian Audio-Visual Certification Office (CAVCO), Department of Canadian Heritage:
www.pch.gc.ca/cavco/


Film or Video Production Services Tax Credit (Federal) (PSTC)  
 
This Federal tax credit is the most commonly used tax credit by foreign film companies. The PSTC is designed to enhance Canada as a location of choice for film and video productions employing talented Canadians, strengthen the industry and secure investment.

This credit is equal to 16% of salary and wages paid to Canadian residents or taxable Canadian corporations (for amounts paid to employees who are Canadian residents) for services provided to the production in Canada.

This refundable tax credit has no cap on the amount which can be claimed. The corporation must contract directly with the copyright owner or be the copyright owner of the production.

For More Information:

Contact the Canadian Audio-Visual Certification Office (CAVCO), Department of Canadian Heritage:
www.pch.gc.ca/cavco/


Customs and Duties (Importing Goods) 

Goods entering Canada temporarily for use on a film production will qualify for duty-free entry (effective January 1, 1998). Generally, all goods being imported temporarily, as long as they are not being imported for sale, lease, further manufacturing, or processing, will qualify for duty-free entry under tariff item No. 9993.00.00 and can enter temporarily for up to 18 months.

Goods imported temporarily may be subject to the Goods and Services Tax (GST), however, you can claim full or partial relief upon their return to the point of origin.

Contact Canada Customs and Revenue Agency for more information.

For answers to other general customs enquiries, or to locate your nearest customs district office, please call their information line:

From within Canada, call: 1-800-461-9999 (toll free)
From outside Canada, call: 1-204-83-3500 or 1-506-636-5064 (long-distance charges apply)