Are Screenwriters Eligible?
How is FIBC administered?
Who can claim FIBC?
Is the credit refundable?
How do I claim FIBC?
We haven't set the fiscal year end for the production corporation yet. Is this a problem?
When should I apply for an eligibility certificate?
Production companies are encouraged to apply for an eligibility certificate as early as possible in the pre-production or production stage. This allows time to address any issues that may put a production offside prior to the start of the production. Documents required when submitting an application are set out in the FIBC Checklist. Please note that the eligibility certificate will not be issued until principal photography has commenced.
Is there a time limit to apply for and receive a completion certificate?
Yes. A completion certificate must be issued by Creative BC within 30 months from the end of the corporation’s tax year in which principal photography began.
However, if the production is started and completed in a single tax year, corporations only have 18 months from the end of the tax year in which the production is completed to receive the completion certificate and submit it to CRA along with the T2 corporate income tax return. This 18-month CRA filing deadline will be sooner than the 30-month completion certificate deadline for these shorter production cycles. Learn more about CRA filing deadlines here and about completion certificate required in the final tax year of production here.
Documents required at the time of application are set out in the FIBC Checklist. If you fail to submit your application and documents on time, or do not allow Creative BC sufficient time to issue the completion certificate (standard processing time for a completion application is up to 4 months), your eligibility certificate may be revoked and your tax credit claim(s) denied. If the eligibility certificate is revoked, the production corporation is not entitled to FIBC and must repay any FIBC tax credits received for that production. If you do not provide your completion certificate to CRA by the filing deadline for your final year of production, your tax credit claim for that tax year may be denied.
Production | Production 1 | Production 2 | Production 3 |
---|---|---|---|
Principal photography / Key animation (PP/KA) start date | Jan 01, 2021 | Jan 01, 2021 | Jan 01, 2021 |
Production Completion Date | Dec 30, 2021 | Dec 30, 2022 | Dec 30, 2023 |
Time between PP/KA Start and Production Completion | 1 Year | 2 Years | 3 Years |
Taxation Year End (TYE) | Dec 31 | Dec 31 | Dec 31 |
First TYE after PP/KA start date | Dec 31 2021 | Dec 31 2021 | Dec 31 2021 |
Final Taxation Year-end of Production | Dec 31 2021 | Dec 31 2022 | Dec 31 2023 |
24-month deadline – Production must complete before this date – see Basic tax credit 80(1)(b) | Dec 31 2023 | Dec 31 2023 | Dec 31 2023 |
30-month deadline – ProdCo must receive Completion Certificate before this date but CRA deadline to file Completion Certificate may be earlier – see below.see Revocation of certificates 88(1)(b)(i)(A) | Jun 30, 2024 | Jun 30, 2024 | Jun 30, 2024 |
CRA filing deadline for the following Taxation Year: | Production 1 | Production 2 | Production 3 |
---|---|---|---|
1st Taxation Year (Ending Dec 31, 2021) Eligibility Certificate required to be filed with this claim. See Application for tax credit 85(1)(a)(i). |
Jun 30, 2023 (file with both Eligibility and Completion certificate) |
Jun 30, 2023 (file with Eligibility certificate) |
Jun 30, 2023 (file with Eligibility certificate) |
2nd Taxation Year (Ending Dec 31, 2022) | N/A | Jun 30, 2024 (file with Completion certificate) |
Jun 30, 2024 (file with Eligibility certificate) |
3rd Taxation Year (Ending Dec 31, 2023) | N/A | N/A | Jun 30, 2025 (file with Completion certificate) |
Final Taxation Year Completion Certificate required to be filed with this claim. See Application for tax credit 85(1)(a)(ii). |
Jun 30, 2023 | Jun 30, 2024 | Jun 30, 2025 |
Date Completion Certificate Must Be Submitted to the CRA | Jun 30, 2023 | Jun 30, 2024 | Jun 30, 2024 |
What is the time limit for making a claim with CRA for the FIBC?
For taxation years beginning on or after February 19, 2020, the claim form (T1196), eligibility certificate and T2 must be filed with the Canada Revenue Agency (CRA) within 18 months from the end of the tax year in which the FIBC is being claimed. The CRA will not process claims that are filed late or that are missing the required documents by the deadline.
For example, a production company’s taxation year starts on April 1, 2020. The company’s fiscal year end is March 31, 2021. The production company has until September 30, 2022, to claim the tax credits with CRA related to BC labour expenditures incurred in that fiscal year. This would be Claim 1.
If the production company continued to incur qualified BC labour expenditures for a production until May 31, 2021, the tax credits for the fiscal year ending March 31, 2022 must be claimed with CRA by September 30, 2023. This would be Claim 2.
** Please note that for taxation years beginning before February 19, 2020, the filing period with CRA is 36 months from the fiscal year end of the production corporation.
How long does it take to get an eligibility or completion certificate?
How long does it take to get a refund?
We need to have the eligibility or completion certificate amended. What is the procedure?
Please email your request to Creative BC at attachments@creativebc.com, referencing the name of the production and the application number. Please note that we will likely need additional back-up supporting the amendment request.
There is a fee of $200 + GST for an amended certificate when the application to amend is being assessed separately from the completion application.
What are the requirements for a person to be considered BC labour?
What documents are considered proof of BC residency?
- Notice of assessment (T1) showing that the individual is a resident of Canada/province for the relevant tax year;
- Letter from the CRA giving an opinion of the individual’s residency status in Canada for the relevant year(s)*;
- Long-term (one year or more) lease or purchase of a Canadian dwelling with utility and/or cell phone bills showing the individual is living at that Canadian address.
*After completing Form NR74, Determination of Residency Status (Entering Canada) or NR73, Determination of residency status (leaving Canada).
OR if none of the above documents are available, the CRA requires a copy of three of the following documents to support residency status.
- Copy of the last income tax return filed in the country of origin and/or any document filed with the foreign tax authority in which the individual has declared that they are no longer a resident.
- Short-term (less than a year) lease agreement or letter from a landlord supporting a rental agreement.
- Provincial/territorial health or services card for the individual, their spouse and/or dependant.
- Driver’s licence or vehicle registration from the relevant province/territory**.
- Professional association or union membership in Canada.
- Statements of accounts (ex. bank accounts, retirement savings plan, credit cards, securities accounts) from a Canadian branch of a financial institution.
**A provincial or territorial services card that includes health care and a driver’s licence will count as two documents.
For further information on residency status determination, refer to the CRA’s Residency Guidelines or contact the CRA Film Services Unit at 1-866-317-0473.
What are the requirements for a person to be considered a BC producer?
Are kit rentals considered eligible labour expenditures?
However, if the kit rental is paid to an employee and is included as a taxable benefit to the employee on his/her T4 and the relevant source deductions have been taken, kit rentals will be allowed to be included as an eligible labour expenditure. CRA’s Application Policy FIS 2006-01 provides further information on the inclusion of taxable benefits as labour expenditures.
Are fringes considered eligible labour expenditures?
Do you have a form that we need to use to show BC labour / Non-BC costs?
What are the rules for interprovincial co-productions?
What are the rules for international treaty co-productions?
Please refer to the Program Summary for International Treaty Co-Productions for further detailed information.
When the production is an interprovincial co-production or an international treaty co-production, what amount is used as the production cost limit when determining the labour cap calculation?
How is a production treated when it is both an interprovincial co-production and an international treaty co-production?
How does Creative BC define "reality" programs?
How do you verify that a company is "Canadian-controlled"?
What is a “permanent establishment” in a province for a production corporation?
Does an agreement with a sales agent meet the legislative requirement that there is a written agreement at fair market value with a Canadian-controlled distributor or arms-length Canadian broadcaster to have the production shown in Canada within 24 months
I have private investors helping to finance my production. Is this OK?
Please contact CRA Film Services Unit if you have further questions.
What if I use crowdsourcing? Will this affect my tax credits?
What "grinds" the tax credits? What does this mean?
- Website costs
- Promotional / marketing costs incurred after the production is complete
- 50% of craft services
- Tax credit application fees
- Crowdsourcing
- Grants
- Deferrals
- Non-recoupable advances
- Other provincial tax credits (not federal tax credits)
- Non-bona fide loans (please refer to CRA’s application policy on this issue and additional types of assistance)
Note that bona fide loans, equity financing and CAVCO (federal) tax credits do not grind the BC tax credits.
Is there an on-screen credit requirement for the tax credits?
If principal photography occurs within the designated Vancouver area (DVA) and outside the DVA on the same day, can the day be considered a regional day for the regional tax credit?
We’re hiring a trainee for our production. Can we access the Film Training Tax Credit?
Our trainees are enrolled in an approved training program and their salary, wages or remuneration are partially covered by the program. Can I claim their total salary, wages, or remuneration under the Film Training Tax Credit?
Is the BC trainee labour expenditure eligible for the Film Training Tax Credit if financed by a grant or other source considered assistance?
What documents are required to apply for the Film Training Tax Credit?
What can prospective applicants provide to Creative BC to help Certifying authority assess if a program is an approved training program?
Which training roles are eligible for the Film Training Tax Credit?
More questions?
Disclaimer
PLEASE BE ADVISED that where there is a discrepancy between these FAQs and the Income Tax Act (BC) and Regulation (“The Act”, the provisions of The Act prevail. Creative BC cannot confirm whether a production will be eligible for tax credits until we have received a complete application and all corresponding documentation.