Film or Video Production Services Tax Credit (PSTC)

Overview of the Film or Video Production Services Tax Credit (PSTC) program:

The Film or Video Production Services Tax Credit (PSTC) provides eligible production corporations with a tax credit at a rate of 16 per cent of the qualified Canadian labour expenditures incurred in respect of an accredited production. Co-administered by the Canadian Audio-Visual Certification Office and the Canada Revenue Agency, the PSTC is designed to enhance Canada as a location of choice for film and video productions employing Canadians, as well as to strengthen the industry and secure investment.

Benefits of the Film or Video Production Services Tax Credit (PSTC) program:

• Tax credits are available at a rate of 16% for eligible Canadian labour expenditure that an eligible corporation has paid for services in Canada fulfilled by Canadian residents.

Eligibility criteria of the Film or Video Production Services Tax Credit (PSTC) program:

• To be eligible for the PSTC, a production corporation must be:
• A taxable Canadian corporation or a foreign-owned corporation;
• Engaged primarily (more than 50%), through a permanent establishment in Canada, in the activities of a film or video production business, or a film or video production services business; and
• The owner of the copyright in the accredited production, throughout the period during which the production is produced in Canada (or have contracted directly with the copyright owner of the production, to provide services for the production).