A tax credit for companies
that educate and entertain
We follow a clear methodology, built on tested know-how and in full compliance with current legislation. We do the heavy lifting for you!
WE PROVIDE: Assignment of a dedicated Project Manager who will work with you
WE PROVIDE: Assistance in understanding digital media tax credit eligibility and retrieval of all supporting documents
WE PROVIDE: Comprehensive backups of the product(s) inline with the individual digital media tax credit requirements
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:
The OCASE is a refundable tax credit for eligible, Ontario-based Canadian- or foreign-controlled corporations in the film & television production industry directly related to digital animation and digital visual effects. Corporations can receive up to 18% of eligible labour expenditures for productions. The OCASE tax credit is claimed in addition to the Ontario Film and Television Tax Credit (OFTTC) or the Ontario Production Services Tax Credit (OPSTC).
To be qualified, a corporation must:
Animation or visual effects houses, post-production houses, and film and television production companies that perform eligible computer animation and special effects activities are included as qualifying corporations.
Activities that are eligible include:
Note that activities considered scientific research and experimental development are not included.
As part of RSM Canada, we’ll take the next step in our growth strategy, continuing to help our clients benefit from the credits and incentives services we offer, while enhancing our offerings with additional tax, audit and consulting services and resources.