PSTC/FIBC Tax Credit: Proof of Permanent Establishment in BC

If you intend to claim the motion picture tax credits in British Columbia, ensure your corporation has a permanent establishment in BC

Accredited corporation claiming PSTC must be a Canadian taxable corporation primarily engaged in film and video production business and with a permanent establishment in BC during the taxation year, however not necessarily incorporated or registered in BC.

Eligible production corporation claiming FIBC must be a Canadian-controlled taxable corporation primarily engaged in film and video production business and with a permanent establishment in BC during the taxation year.

A valid proof of permanent establishment shows the corporation’s name and the BC address during production. Our preferred documents to verify permanent establishment in BC are a copy of the bank statement, lease agreement with a film studio, utility bill, admin fee cheque, or BC registry documents.

See the Income Tax Act (BC) to learn more about an “accredited corporation”, “eligible production corporation”, and “BC-based corporation”.

Andree Laplante
Business Analyst, Motion Picture Tax Credits
alaplante(at)creativebc.com

This post is intended as a general overview. It is not exhaustive and should not be relied upon to determine eligibility or the final amount of an anticipated tax credit. In case of any discrepancies between this post and the Income Tax Act (BC) and Regulations (the “Act”), the provisions of the Act prevail.