Canada’s 2021 Tax Incentives for Film and Video

The Canadian Federal, provincial, and territorial governments realize the massive potential the film, and video industry has. Even with the pandemic in its full bloom, the Canadian government is eager to introduce 2021 tax incentives for film and video production corporations.
This blog explains the Canadian film and video tax credits, who can avail them, and how to apply for these tax credits.

Highly refundable Tax Credit

With almost $9.3 billion in revenue in 2019, the Canadian government is working to improve these statistics. The 2021 film and video tax credits allow productions to avail a refundable tax credit of up to 25% of the qualified labour expenses. It should be noted that different provinces provide these refundable tax credits at varying rates.
With such high tax credits, Canada Revenue Agency aims to promote the local film and audio industry. This initiative will help grow employment opportunities for local citizens and improve the growing economy of the country.

Are you Eligible?

To qualify for the Canadian Film or Video Production Tax Credits, a film production must act according to the country’s Income Tax Regulations.
Corporations following these guidelines are certified as Canadian film production and can avail these tax credits.

calculator-pens-textbooks

You might not be eligible for these incentives if you receive benefits through the Film or Video Production Services Tax Credit.

How to Apply for the Canadian Film or Video Tax Credits?

You can begin your tax credit application by reading up on the CPTC guidelines and acquainting yourself of their requirements.
You’ll be required to create an online account at the Canadian Audio-Visual Certification Office (CAVCO). You can sign up for the film and video incentives by filling out the online application form with the following information.
Fill out the application form with the production’s financial details, corporate documentation, personnel documentation, and production details. Moreover, you’ll be required to add details about your production; episode titles (if it’s a series), a visual copy of the production, CRA T2029 waiver forms, expenses associated with the production, audit reports, and final cost information.
You can forward the application and the attested documents to the Receiver General for Canada. This application is usually processed within 120 business days.
A reputable tax preparation and tax planning firm can help you navigate through the application process.
Faber LLP is a full-service accounting firm based in Edmonton, Alberta. We assist clients in managing their books with our accounting, tax planning, and strategy services.
If you want to learn more about our accounting and tax planning services, give us a call at 780-432-5262!