Canadian film and TV productions account for $5 billion in revenue, employing more than 117,000 people on a full-time basis. Ontario, Quebec and British Columbia alone make up more than 90 percent of total volume production in the country.
Production is growing with the support of federal and provincial governments that encourage investment in Canada by means of incentives. These incentives are a critical part of that growth in offsetting the cost of productions in the country, allowing both domestic and international productions to reduce their costs.
According to PwC’s Global Entertainment and Media Outlook, global spending on filmed entertainment is forecast to reach $113.1 billion. In North America, the world’s largest production region, spending is expected to rise to $50.3 billion—a compound annual growth rate of 5.2 percent.
The Canadian Film or Video Production Tax Credit (CPTC) is jointly administered by the Canadian Audio-Visual Certification Office (CAVCO) and the Canada Revenue Agency (CRA). Eligible products can receive a fully refundable tax credit, available at a rate of 25% of the qualified labour expenditure. The CPTC encourages the development of an active independent production sector in Canada as well as Canadian film and television programming.
Taxable, Canadian-controlled production companies with a permanent establishment in Canada and primarily carry on activities of eligible Canadian film or video productions. A production must be a linear film or video production that’s non-interactive. Voting outside of the context is fine, and virtual reality (VR) productions can be eligible, as long as the storyline progresses in a linear way without the interaction of the viewer.
The Film or Video Production Services Tax Credit (PSTC) is jointly administered by the Canadian Audio-Visual Certification Office (CAVCO) and the Canada Revenue Agency (CRA). Eligible companies can receive tax credits at a rate of 16% of qualified labour expenditures. The PSTC is intended to strengthen the industry, secure investment, and enhance Canada as a location of choice for film and video productions.
The OFTTC is a refundable tax credit for eligible, Ontario-based corporations in the film & television production industry. Corporations can receive up to 35-40% of eligible labour expenditures for productions. Regional bonuses are also available for productions that are shot and animation productions if the majority of the filming / work takes place outside of the Greater Toronto Area.
A corporation must be Canadian-controlled, have permanent establishment in Ontario, and file an Ontario corporate tax return in order to be considered a qualified company. Also, the individual producer must be an Ontario resident for tax purposes at the end of the previous two calendar years prior to commencement of principal photography.
Productions that are eligible include:
The OPSTC is a refundable tax credit for eligible, Ontario-based Canadian- or foreign-controlled corporations in the film & television production industry. Corporations can receive up to 21.5% of eligible labour expenditures for productions. Requirements for this tax credit are generally “harmonized” with the federal Film or Video Production Services Tax Credit administered by Canadian Audio-Visual Certification Office (CAVCO) and the Canada Revenue Agency (CRA).
To be qualified, a corporation must:
Productions that are eligible include:
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