A qualified corporation is one that is throughout a given taxation year a prescribed taxable Canadian corporation with a permanent establishment in Canada, and that primarily carries on the activities of a Canadian film or video production business. The CPTC is available only to a Canadian production company that is a qualified corporation. They also explain how the tax credit for a production is calculated, and the CRA’s role in reviewing claims for the tax credit following the certification of a production through CAVCO. These guidelines focus on the requirements a production must meet to be certified as a Canadian film or video production under the CPTC program. Footnote 1 The Act and Regulations take precedence, to the extent of any inconsistency with these guidelines. Links to the full text of the Act and Regulations are available on CAVCO’s website. The CPTC is governed by section 125.4 of the Income Tax Act (the “Act”) and section 1106 of the Income Tax Regulations (the “Regulations”). The CPTC program is jointly administered by the Department of Canadian Heritage, through the Canadian Audio-Visual Certification Office (CAVCO), and by the Canada Revenue Agency (CRA). The Canadian Film or Video Production Tax Credit (CPTC) is a refundable corporate tax credit designed to encourage the creation of Canadian film and television programming and the development of an active domestic independent production sector in Canada. List of acronyms and abbreviations BBC British Broadcasting Corporation CAVCO Canadian Audio-Visual Certification Office CMF Canada Media Fund CPA Chartered Professional Accountant CPTC Canadian Film or Video Production Tax Credit CRA Canada Revenue Agency CRTC Canadian Radio-television and Telecommunications Commission DG Director General DVD Digital Versatile Disc PSTC Film or Video Production Services Tax Credit VOD Video on Demand VR Virtual Reality Overview What is the Canadian Film or Video Production Tax Credit? Figure 2: A production in respect of a game, questionnaire or contest (other than a production directed primarily at minors).Figure 1: Stages for review of applications at CAVCO.Table 2: Key creative point system for animation productions.Table 1: Key creative point system for live action productions.Key Creative and Producer-Related Personnel Correction (applicable to the French version only) to the wording restating the fourth, fifth and sixth elements of the “Key things to know” section for the ineligible genre of “news, current events, or public affairs programming, or a program that includes weather or market reports”, to match the wording used in the main definition.Removal of CAVCO’s local phone number (no longer in use).This set of updates also includes other minor edits to improve clarity and readability, and that do not result in any substantive modifications to program requirements. Adding additional example to distribution scenarios that involve non-Canadian distributor.Clarifying the reference to “other content” in the first criterion for acceptable online services in the context of “online-only” productions.Clarifying how stock footage costs should be entered in the Breakdown of Costs (reflecting new policy from CAVCO Public Notice 2022-02).Clarifying that a lead voice in an animation production can be performing multiple characters.Adding text boxes to explain temporary extensions to various CPTC timelines due to the effect of COVID-19 on the Canadian audiovisual sector.Removing section on Canadian Content Certification Audit Program, due to program being discontinued.Updating Figure 1 diagram that describes the stages in CAVCO’s review of applications.Removing reference to cheques as the exclusive payment option due to online payments now being accepted.Clarifying how a change to a production’s “eligible production cost” affects the total application fee for the production.Clarifying when CAVCO may ask applicants to provide additional episodes of a series.Clarifying the importance of submitting complete applications.Application guidelines - Canadian Film or Video Production Tax Credit (CPTC) Canadian Audio-Visual Certification Office (CAVCO)
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