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PSTC FAQ

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General FAQ

Pre-certification is the first step in the Production Services Tax Credit (PSTC) application process.

To qualify for the maximum tax credits available, applicants planning to do qualifying motion picture work in B.C. must complete a simple pre-certification registration form for each planned production.

This submission generates a pre-certification number from Creative BC for the project. Pre-certification is required for the PSTC application under the B.C. Income Tax Act for productions that first incur an accredited B.C. labour expenditure on or after July 1, 2020.

For productions that first incur an accredited BC labour expenditure prior to July 1, 2020, precertification is not a legislative requirement, but a pre-certification number is still required as part of the full PSTC application. Pre-certification FAQ

Refer to the recent updates on the elimination of the PSTC pre-certification requirement proposed in the Budget 2026 announcement, effective upon royal assent.

Creative BC processes the accreditation applications and issues the certificates. The certifying authority is the Ministry of Tourism, Arts and Culture. The Canada Revenue Agency reviews and audits claims and issues refund cheques where appropriate.

The PSTC may be claimed by an accredited production corporation. Please see the Ministry of Finance website for more information on the eligibility requirements: British Columbia Production Services Tax Credit.

Yes, the credit is refundable to the extent it exceeds the corporation’s income tax payable.

No. There are no production caps, corporate caps or annual caps and there is no sunset date for Production Service Tax Credit program.

The credit is claimed when filing the T2 Corporation Income Tax Return. A completed claim form (T1197) and an accreditation certificate for each production should be attached to the top of the T2 form.

There is no time limit for applying for an accreditation certificate. However, there are two important deadlines you need to be aware of under PSTC:

  1. Prior to submitting a PSTC application, you must register for Pre-certification with Creative BC within 60* or 120** days after the production’s first accredited BC labour expenditure is incurred. *Productions that incurred first accredited BC labour expenditures before February 22, 2022 and after June 30, 2020 have 60 days to file a pre-certification form (per Budget 2020). **Productions that incurred first accredited BC labour expenditures on or after February 22, 2022 have 120 days to file a pre-certification form (per Budget 2022).  See more details in our PSTC Pre-certification FAQ; and
  1. There is a deadline for claiming the PSTC with the Canada Revenue Agency (CRA), and an accreditation certificate is required for CRA to process the PSTC claim. See more information here.

Production companies are encouraged to apply for an accreditation 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.

Refer to the recent updates on the elimination of the PSTC pre-certification and filing deadline changes in the Budget 2026 announcement, effective upon royal assent.

For taxation years beginning on or after February 19, 2020, the claim form (T1197), accreditation 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 PSTC 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.

Refer to the recent updates on the elimination of the PSTC pre-certification and filing deadline changes in the Budget 2026 announcement, effective upon royal assent.

Our service standard is to process applications within 120 days from the date we receive a complete application, 90% of the time. Incomplete applications, outstanding information or missing documents will delay the issuing of certificates.

The Canada Revenue Agency Film Services Units try to complete their work on a claim within 60 days for a complete claim that is not selected for an audit, or within 120 days when an audit is performed. The complete file is then forwarded to your tax centre for assessment. A refund cheque is issued within a few days where applicable.

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 backup supporting the amendment request. There is a fee of $200 + GST for an amended accreditation certificate.

For Live Action Productions:
“Principal photography”, for scripted productions, is the filming of the main unit of the production, with principals and majority key creatives present on set, distinct from second unit, splinter unit, development filming or similar.

“Principal photography”, for unscripted productions, such as documentaries, factual and lifestyle, is the filming of the main unit of the production, with subjects (if applicable) and majority key creatives present on set during which the primary footage of the production is filmed, distinct from the second unit, development filming or similar.

For Animated Productions:
Principal photography is the beginning of key animation.

“Key animation” is the pivotal moment in the animation process that defines/encapsulates the movement/emotion and provides key frames/ poses, setting the timing, life and expression of the character(s) in the sequence. The key animator’s work is part of the final print.

Principal Photography Start Date is when the production begins filming of the main unit.

“Complete”, in relation to a film or video production, means that the production has been finished and is commercially exploitable.

Production Completion Date is when the production exists in a final form and is ready for exploitation or delivery to a distributor, broadcaster or purchaser.

No, the requirements are for the global budget on the production. There is no minimum B.C. spend under the PSTC.

A permanent establishment is usually a fixed place of business of the production corporation, which includes an office or studio. If the corporation carries on business through an employee or an agent established in a particular place, it is considered to have a permanent establishment in that place if the employee or agent has general authority to contract for the corporation. A corporation that has a permanent establishment in British Columbia is considered a “B.C.-based corporation”.

An accredited production corporation claiming PSTC must be a Canadian taxable corporation primarily engaged in a film and video production business with a permanent establishment in BC during the taxation year.

A proof of permanent establishment must:

  • Show the name of the accredited corporation (i.e. the corporation applying for the tax credits)
  • Show the accredited corporation’s address in B.C. (i.e. their place of business) and
  • Be dated during the relevant taxation year.

Examples of documents that show proof of permanent establishment in B.C.:

  • Lease agreement for the production office or studio
  • Tax credit administration fee cheque from the accredited corporation
  • Bank statement
  • Utility bill
  • Registered and Records Office Agreement with a law firm or,
  • Invoice from a supplier relevant to the production.

An Official Designee Declaration must be obtained from the copyright holder who holds the greatest percentage of the copyright. If copyright is held 50/50 between two corporations, we will accept a Declaration from one of the copyright holders, provided that this company is a signatory to the Production Services Agreement.

Note that if copyright ownership was transferred after production, the Declaration must be from the current copyright owner. We do not need declarations from all former copyright holders.

The individual must be resident in BC and ordinarily resident in Canada as of December 31 of the year preceding the end of the fiscal year for which the tax credit is being claimed.

For example, if the production corporation fiscal year end is March 31, 2020, the person must be resident in BC as of December 31, 2019 to be part of the corporation’s BC labour for that tax year.

Note that it must be established that the individual is also a resident of Canada when they have recently moved to Canada. This is assessed by the Canada Revenue Agency based on a number of factors indicating that the individual is not in Canada temporarily. Paying tax in BC in the previous calendar year is a good indicator but is not necessarily the determining factor that the individual is a resident of BC for the purposes of the tax credit. To determine if the individual is resident of Canada, refer to the CRA’s guidelines on Resident Status and Tax Obligations.

Also note that under the PSTC, the BC labour costs need to be incurred in BC to be included in BC labour.

For further information, please refer to the CRA residency guidelines or contact the CRA Film Services Unit at 1-866-317-0473.

The Canada Revenue Agency (CRA) requires a copy of any one of the following documents to support residency status:

  • 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.

The Production Service Tax Credit is calculated on labour expenditures paid to BC-based individuals. Kit rental charges are not direct labour expenditures as they are paid for the rental of the equipment or tools and not for the individual’s labour. If an individual is being paid as a contractor, the kit rentals are not permitted as 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.

Only if they are paid to an employee of the corporation and included as a taxable benefit on his or her T4. Fringes paid to contractors are not eligible. CRA’s Application Policy FIS 2006-01 provides further information on the inclusion of taxable benefits as labour expenditures.

Reality programming consists of scenes recorded on private or public authority surveillance equipment. This category also includes programming currently known as court television and similar formats (e.g. “Cops”).

Please see our PSTC on-screen credit request here

Yes, but only if principal photography (first unit shooting) on that day takes place substantially outside of the designated Vancouver area. For tax purposes, “substantially” is interpreted as 90% or more. Second unit shooting is not counted as principal photography.

Yes. Note that the B.C. on-set DAVE labour must be directly related to the digital effect and the primarily digital methodology must be provided.

3D or stereoscopic filming or conversion (3D) may be eligible for the DAVE tax credit, provided the shots are manipulated after shooting for depth perception and other visual effect properties.

The wages, salaries and remuneration paid to B.C.-based individuals performing the 3D associated post-production functions may qualify as B.C. labour expenditures for the purposes of calculating the DAVE tax credit. Please note, only the individuals using digital technology for the 3D process will qualify for the “digital” component of the credit for the purposes of determining primarily digital.

The fact that a production is made entirely using 3D processes does not make the production automatically 100% DAVE eligible. The primary digital determination must be performed to determine the amount of DAVE-eligible activities for the production.

They may be answered elsewhere on our website or on the BC Ministry of Finance and CRA websites:

BC Ministry of Finance

Canada Revenue Agency

Call or email Creative BC staff

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.

PSTC Rate Changes – 2025 Budget

For a PSTC episodic production, the tax credit rate in effect when the first eligible episode began principal photography is the tax credit rate applied to all episodes constituting one cycle of the series. The date principal photography started on the first episode produced for the entire cycle of the series will determine the basic tax credit rate applicable for the entire production.

For example: If an episodic production started principal photography on November 1, 2024 and completed on June 30, 2025, the basic tax credit rate for the entire episodic production would be 28%. Any episodes of that cycle that start principal photography on or after January 1, 2025 would not be eligible for the higher rate.

No, the PSTC rate increase is based on the principal photography start date for the production, regardless of where principal photography started or when production work began in B.C.

For example: A production begins principal photography on December 1, 2024 outside of BC and VFX production work begins in B.C. on February 1, 2025. Since principal photography of the production began on December 1, 2024, the VFX production services done in B.C. are not eligible for the higher rate even though the work done in B.C. did not start until after January 1, 2025.

PSTC Rate Changes – 2025 Budget

The major production tax credit is a refundable tax credit that is 2% of accredited qualified B.C. labour expenditures for a major production.

A major production is an accredited production that spends at least $200 million on accredited B.C. major production expenditures. If the production is intended for television broadcast as a series, all episodes of the cycle of the series produced in B.C. can be combined to meet the $200 million accredited B.C. major production expenditures threshold. Principal photography of the major production must start on or after January 1, 2025.

Accredited B.C. major production expenditures are amounts paid for services rendered in B.C. and goods purchased or leased, and used in B.C., that are in relation to pre-production, production, and post-production. However, the eligible expenditures do not include amounts related to advertising, marketing, promotion or market research, the distribution of the production, or in any way to another film or video production. Furthermore, they do not include any amounts that are not a cost of producing the production or amounts determined by reference to profits or revenues.

A production corporation is eligible for the major production tax credit if the following requirements are met:

  • The production corporation is eligible for, and will claim or has already claimed, the production services tax credit
  • If the major production is a television series, at least one episode in the cycle of the series is an accredited production that is eligible for the production services tax credit
  • Principal photography for the major production begins after December 31, 2024
  • The major production was completed in the taxation year it is claimed
  • The production corporation has obtained a major production certificate

The production company will need to apply for a major production certificate with Creative BC once the production is completed. Once a major production certificate has been issued, the major production tax credit can be claimed in the taxation year in which the major production is completed. It cannot be claimed in a taxation year prior to the completion of the production or in any subsequent taxation years.

Refer to the recent updates regarding the Major Production Tax Credit certification fee introduction in the Budget 2026 announcement, effective upon royal assent.

PSTC Rate Changes – 2025 Budget

Regional and distant location production services tax credits for animation productions that start principal photography (key animation) on or after January 1, 2025.

The regional production services tax credit is available to corporations that produce animation productions that meet the following criteria:

  • Principal photography (key animation) of the production begins on or after January 1, 2025
  • The production is in a physical office in BC outside of the designated Vancouver area
  • The production corporation incurs B.C. labour expenditures in respect of services provided by B.C.-based individuals working in the physical office for at least 50% of their time spent working on the animation production for the taxation year
  • You must receive a valid accreditation certificate
  • The production must have claimed or be making an application for the basic production services tax credits

You must file a pre-certification for the animation production within 120 days of incurring your first accredited B.C. labour expenditure to avoid reduced or denied claims.

A physical office means a building or part of a building, which is used to produce an animation production, that is not a dwelling unit and that is owned or leased by either the corporation producing the animation production or a taxable Canadian corporation that controls that corporation. The physical office must be owned or leased for twelve consecutive months, or from the principal photography start date of the animation production until the date the animation production is completed, whichever is greater.

The regional production services tax credit is a refundable credit, which will be available to animation productions with accredited qualified BC labour expenditure in relation to services rendered by B.C.-based individuals in a physical office located outside of the designated Vancouver area. The credit is 6% of the accredited qualified B.C. labour expenditure for the production for the taxation year that is attributable to the portion of the corporation’s accredited B.C. labour expenditure that is for services provided by B.C.-based individuals working in the physical office for at least 50% of their time spent working on the animation production for the taxation year.

The distant location production services tax credit is available to corporations that produce animation productions that meet the following criteria:

  • Principal photography of the production begins on or after January 1, 2025
  • The production is in physical office in B.C. in a distant location
  • The production corporation incurs B.C. labour expenditures in respect of services provided by B.C.-based individuals working in the physical office for at least 50% of their time spent working on the animation production for the taxation year
  • You must receive a valid accreditation certificate
  • The production must be eligible for the production services and regional production services tax credits, and you need to have claimed or be making an application for the production services and regional production services tax credits

You must file a pre-certification for the animation production within 120 days of incurring your first accredited B.C. labour expenditure to avoid reduced or denied claims.

The distant location production services tax credit is a refundable tax credit, which will be available to animation productions with accredited qualified B.C. labour expenditure in relation to services rendered by B.C.-based individuals in a physical office in a distant location.  The credit is 6% of the accredited qualified B.C. labour expenditure for the animation production for the taxation year that is attributable to the portion of the corporation’s accredited B.C. labour expenditure that is for services provided by B.C.-based individuals working in the physical office for at least 50% of their time spent working on the animation production for the taxation year.

Principal photography for animation productions begins when key animation begins.

The employees of the subcontractor must also spend at least 50% of the time that they spend providing services related to the production in the physical office of the animation production corporation that is claiming the tax credit. This office must be located in a regional or distant location.

An inspector for the certifying authority may enter any place used by a corporation to carry on business or keep records at any reasonable time to review the records and make copies. The certifying authority may require that further information or records be provided.

Non-compliance with the requirements may result in the denial or revocation of the production corporation’s accreditation certificate. If an accreditation certificate is denied or revoked, any film and television tax credits received for the animation production must be repaid.