Film or Video Production Services Tax Credit
Last Update: April 27, 2025
Canada
Labour tax credit for film or video production in Canada
Film or Video Production Services Tax Credit at a glance
Eligible Funding
- No Condition
Timeline
- Open Date : November 14, 2019
Financing Type
Tax Credits
Eligible Industries
- Information and cultural industries
Grant Providers
- Canadian Heritage
- Government of Canada
Status
Open
Overview of the Film or Video Production Services Tax Credit program
Tax credit of 16% on salaries and wages paid to Canadian residents working on a film or video production in Canada.
Financing terms and conditions
- The Film or Video Production Services Tax Credit (PSTC) offers a refundable tax credit of 16% of the qualified Canadian labour expenditure incurred by an eligible production corporation.
- There is no cap on the total amount of PSTC that can be claimed for a production.
- Eligible minimum production costs: individual productions must exceed C$1,000,000 in total costs (within 24 months after principal photography begins); for a series, episodes under 30 minutes must exceed C$100,000 per episode, and episodes 30 minutes or longer must exceed C$200,000 per episode.
- The amount of the tax credit is reduced by any other government assistance or provincial tax credits received for the same expenditures.
Eligible projects & activities
- Production of film or video projects that meet prescribed cost minimums and are not excluded genres.
- Production of episodic series, where each episode qualifies individually according to cost and genre criteria.
Examples of admissible projects:
$ 48,000
Produce a documentary focused on indigenous cultures in Northern Canada with Canadian crew
$ 56,000
Create an animated series for children, hiring Canadian animators and voice actors
$ 48,000
Produce a web series that explores Canadian culinary traditions, hiring Canadian chefs and filmmakers
$ 40,000
Develop a short educational series for online platforms, employing Canadian writers and editors
$ 80,000
Develop a feature film that highlights Canadian wildlife, hiring Canadian producers and environmental experts
$ 72,000
Create a historical drama series based on Canadian history, employing Canadian actors and historians
Eligibility criteria of the Film or Video Production Services Tax Credit program
- The applicant must be a taxable Canadian corporation or a foreign-owned corporation operating through a permanent establishment in Canada.
- The primary business activity of the applicant must be the production of film or video content or the provision of film or video production services in Canada.
- The applicant must not be exempt from tax under Part I of the Income Tax Act.
- The project must be an eligible genre and not fall under excluded categories such as news, talk shows, reality TV, advertising, or corporate/institutional productions.
- The applicant must either own the copyright in the production during Canadian production or have contracted directly with the copyright owner to provide production services.
Who is eligible?
- Taxable Canadian corporations with primary activities in film or video production
- Foreign-owned corporations with a permanent establishment in Canada primarily engaged in film or video production or production services
Who is not eligible
- Non-profit corporations or charitable organizations that are exempt from tax under Part I of the Income Tax Act.
- Companies controlled, directly or indirectly, by individuals or organizations whose taxable income is fully or partially exempt from tax under Part I of the Income Tax Act.
- Prescribed labour-sponsored venture capital corporations under section 127.4 of the Income Tax Act.
- Companies whose primary business activities are not related to film or video production or film/video production services (e.g., if their main activities include distribution rather than production).
Eligible expenses
- Salaries and wages paid to employees for work directly attributable to the production, from final script to post-production stages.
- Remuneration paid to Canadian resident individuals (non-employees) for services personally rendered in Canada for the production.
- Remuneration paid to taxable Canadian corporations for services of their employees, directly attributable to the production.
- Remuneration paid to loan-out or personal services corporations for services personally rendered by Canadian residents in Canada for the production.
- Remuneration paid to partnerships carrying on business in Canada for services by Canadian resident members or their employees rendered in Canada for the production.
- Reimbursement by a wholly-owned subsidiary to its parent corporation for eligible Canadian labour expenditures, provided an agreement is filed with the CRA.
Eligible geographic areas
- Canadian provinces and territories (production activities must be carried out through a permanent establishment in Canada).
How to apply to the Film or Video Production Services Tax Credit program
1
Register for an Account
- Obtain a Government of Canada Access Key. Agree to the terms and conditions of Access Key and follow instructions to create a User ID and password.
- If you already have an Access Key, sign in using your existing User ID and password.
- Complete the PCH Service Registration by selecting "CAVCO – Tax Credit Programs" and agreeing to the CAVCO Privacy Statement.
- Perform your personal User Registration and wait for confirmation and a PIN, which will be emailed to you.
- Activate your User Registration by logging in with your Access Key User ID and password and entering the received PIN.
- Enroll in the PSTC program from the Program List on your My Applications page.
2
Complete the Application
- Select “New Application” and then “Form” beside PSTC in your eSubmission account.
- Fill out the required fields and attach all necessary supporting documents such as corporate information, financial information, production details, chain of title documents, official designee affidavit (if applicable), signed attestation, and application fee.
3
Submit the Application
- Review your completed application form and attached documents.
- Click “Proceed to Official Submission.”
- Complete the Attestation form, print it out, sign it, and send it to CAVCO with your application fee.
- Wait for your application status to change to "In Queue," indicating it will be reviewed on a first come, first served basis.
4
Provide Any Required Documentation or Information
- A tax credit officer will review the application and may request additional information through the Message Centre.
- Provide any requested information or clarification through the eSubmission system. Adjustments to the application will be managed by unlocking relevant sections for editing and resubmission.
5
Check Status of Submitted Application
- Monitor the status of your application through the "Status" column on your My Applications page.
- Wait for a final decision notification via the Message Centre. If the production is certified, you will receive an Accreditation Certificate. If denied or revoked, you will receive a notification.
Additional information
- There is no cap on the amount of tax credit receivable for a production under this program.
- The PSTC cannot be claimed for productions that have received the Canadian Film or Video Production Tax Credit (CPTC) under section 125.4 of the Income Tax Act.
- CAVCO may request to audit financial and production records or require staff to be present during principal photography as part of its compliance process.
- Application fees are required and must be paid by cheque to the Receiver General for Canada; more details are available on CAVCO's website.
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