When it comes to tax credits, our advice is to contact the Québec Film and Television Council (QFTC). It is the point of service for foreign film and television producers. It will make your life easier every step of the way, from pre-production to post-production. The QFTC can help you get all the tax credits you are entitled to and can also help in several other areas without charging a penny for its services.
The refundable Québec Tax Credit for Film Production Services (QPSTC) is jointly administered by the Société de développement des entreprises culturelles (SODEC) and the Ministère du Revenu du Québec (Revenu Québec).
The base of the tax credit applies to all-spend production costs, which corresponds to the total of the qualified labour costs and the costs of qualified properties. The tax credit corresponds to 25% of the qualified expenditures incurred by an eligible corporation for services provided in Quebec for the making of an eligible production. In addition, eligible expenditures that relate to computer-aided animation and special effects, including the shooting of scenes in front of a chroma-key for use in an eligible production, give rise to an increase in the rate of the tax credit. This increase corresponds to an additional rate of 20% of the qualified labour cost.
For each eligible production, SODEC issues an Approval Certificate which identifies the owner of the copyright and who also attests the eligibility of the production throughout the period during which the production is carried out in Quebec. A copy of the Approval Certificate must be transmitted by the copyright owner or by the means of his official designee, to any eligible corporation who intends to submit an application to SODEC for an Advance Ruling with regards to the eligible production. For each production, the QPSTC cannot be combined with any other Québec tax credit, except for the Québec Film Dubbing Tax Credit as long as the dubbing expenditures are not included in the QPSTC production costs.
Official treaty co-productions between Canada and another country (as administered by Telefilm Canada) and inter-provincial co-productions are eligible.
Click the following link to read the SODEC’s Guidelines on the refundable tax credit for film production services.
The Film or Video Production Services Tax Credit (PSTC) is a refundable tax credit designed to encourage the employment of Canadians by a taxable Canadian corporation or a foreign-owned corporation, the activities of which in the year are primarily the carrying on, through a permanent establishment in Canada, of a film or video production business or a film or video production services business.
The PSTC is available at a rate of 16% of the “qualified Canadian labour expenditure” incurred by an eligible production corporation for services provided in Canada by Canadian residents or taxable Canadian corporations (for amounts paid to employees who are Canadian residents) for the production of the accredited production. The qualified Canadian labour expenditure for a production includes all amounts which are “Canadian labour expenditures” less assistance received (such as other provincial tax credits) for these expenditures. There is no cap on the amount of PSTC which can be received for a production.
Click the following link to read Canada’s Film or Video Production Services Tax Credit Guidelines.