Do you know how to claim British Columbia film credits? It is essential to know when you do film industry accounting. The film corporations which produce eligible films, can have the film tax credits in British Columbia (B.C.). The government made the credits for domestic productions with qualifying level of Canadian content. The British Columbia Film Tax Credit Program provides five refundable tax credits to the corporations.
Here are five distinct tax credits.
Basic Tax Credit
The basic tax credit for one taxation year is 35% of your corporation’s qualified BC labour expenditure for that year.
Regional Tax Credit
The regional tax credit is 12.5% of your corporation’s qualified BC labour expenditure for the taxation year. The credit is set by the number of days of principal photography done in British Columbia outside of the designated Vancouver area, over the total number of days in which principal photography is done in British Columbia.
Distant Location Regional Tax Credit
The distant location regional tax credit is an additional 6% of your corporation’s qualified BC labour expenditure for the taxation year. The credit is prorated by the number of days of principal photography done in a distant location in British Columbia, over the total number of days in which principal photography is done in British Columbia.
Film Training Tax Credit
You may be able to get the film training tax credit for a film if you meet the eligibility requirements to claim the basic tax credit and you employ BC-based individuals in an approved training program.
Digital Animation, Visual Effects and Post-Production (DAVE) Tax Credit
You may be able to get the DAVE tax credit for digital animation or visual effects activities that qualify for the basic tax credit. The DAVE tax credit is an additional credit based on BC labour expenditure directly attributable to prescribed DAVE activities.
Do you need to know more about how to claim British Columbia film credits? You can claim the tax credits when filing the T2 Corporation Income Tax Return, and the credits are refundable to the extent where they exceed the corporation’s tax payable. The Canada Revenue Agency (CRA) handles claims and issues the refunds. Furthermore, British Columbia also offers the Production Services Tax Credit Program.
If you want to know more about film industry accounting, or wish to seek our film accounting services, please contact us.
For the original government source article, please click here.