Tax Credit for Film Production Services (QPSTC)
The province of Québec ranks among the most production-friendly service centers. Québec is acclaimed worldwide for its technological innovations, superior CGI facilities, a broad range of filming locations, top film production infrastructure, and a large pool of skilled technicians. Moreover, to remain at the forefront of new environments and affirm its position, virtual reality and augmented reality productions are also eligible for the tax credit for film production services.
The refundable tax credit for film production services, jointly administered by SODEC and Revenu Québec, is designed to stimulate job creation in Québec, primarily by encouraging foreign producers to choose Québec as a filming location.
The basis of the tax credit applies to all-spend production costs, which corresponds to the total of the qualified labour costs and the costs of qualified properties. The tax credit corresponds to 25% of the qualified expenditures incurred by an eligible corporation for services provided in Quebec for the making of an eligible production.
Eligible Films
For a film to be recognized as an eligible production, the following conditions must be met:
The film must belong to one of the following categories:
- Fiction films, including films composed entirely of sketches, each derived entirely from a script and specifically designed and arranged for television;
- Documentaries with a minimum duration of 30 minutes of programming or, in the case of a series, 30 minutes of programming per episode, but excluding documentaries intended for minors and virtual reality documentaries, which can be of a shorter duration.
In addition, eligible expenditures that relate to computer-aided animation and visual effects including the filming of scenes in front of a chroma-key for use in an eligible production give rise to an increase in the rate of the tax credit. This increase corresponds to an additional rate of 16% of the qualified labour cost (65% of the portion of the cost of a contract and the other costs related to the contract).
To be eligible, the minimum overall production budget must be CAD $250,000. The company must have a registered establishment in Quebec in the year of production.
For more information on the process, lists of required documents, eligibility requirements, guidelines, templates, forms to use, and deadlines for Quebec tax credits, visit SODEC’s website.
At the federal level, a 16% tax credit is available on expenditures for Canadian professional labor incurred in an accredited production.
Eligible Personnel Withholding Tax Waiver
- Producer
- Executive Producer
- Director
- Artistic Director
- Director of Photography
- Music Director
- Supervising Editor
- Visual Effects Supervisor
- Assistant Producer
- Assistant Director
- Set Designer
- Financial Comptroller
- Accountant or Assistant Accountant
- Visual Effects Producer
- Visual Effects Coordinator
Co-production
QUEBEC'S FISCAL MEASURES
The attractiveness of Quebec for co-production is undeniable: in addition to the possibility of contributions from investors, distributors, and broadcasters, Quebec producers have several tax tools and public funds to attract foreign producers.
The refundable tax credit for Québec film and television production covers labor expenditures incurred by a company that produces or co-produces a Québec film or television production.
The effective rate on the eligible estimate can reach :
– between 16% and 33% for an original Quebec production
– between 14% and 31% for a production adapted from a foreign format.
Requirements:
– A minimum of 75% of the goods and labour expenditures must be paid to companies or individuals residing in Quebec.
– The eligible company must have an establishment in Quebec and be under Quebec control.
– It must hold the rights to the production and, in the case of an official co-production with Canada, obtain co-production approval from Telefilm Canada.
– Distribution, broadcasting, or online broadcasting in Quebec is required.
Find information about the refundable tax credit for film or television co-production in Quebec through SODEC:
TELEFILM CANADA
Telefilm Canada is a Government of Canada Crown corporation in the Canadian Heritage portfolio. Telefilm supports film production through development, production, marketing, and distribution assistance programs in the form of recoupable investments, grants, and repayable assistance, and administers international co-production treaties and the Canada Media Fund (for television projects and digital content).
Potential bonuses for eligible labour expenses:
- depending on the public financial assistance obtained: up to 16%
- for regional companies: between 10 and 20%
- for visual effects and computer animation: 10%
* Note: A minimum of 75% of goods and labor expenses must be paid to companies or individuals residing in Quebec.
Federal tax incentives (through Telefilm Canada) pertaining to the refundable tax credit for Canadian film production:
- Up to 15% of eligible labour expenditures
* Note: The Quebec producer must hold the rights to the production and obtain confirmation from the Department of Canadian Heritage regarding the official co-production status of the production.
Therefore, the co-production tax credit can reach 32% of the labour costs.
Music Scoring
Quebec is a leader in the field of sound recording and music scoring. Thanks to its state-of-the-art recording studios and talented musicians, composers and technicians, the province’s audio industry can accommodate the needs of your film, television or animation projects. The 20% base credit (PSTC) applies to projects that meet SODEC’s requirements.
Virtual Reality (VR) and Augmented Reality (AR)
The province of Quebec is well known for its innovations. In an effort to remain at the forefront of new technological platforms, virtual reality and augmented reality are eligible for the production services tax incentive, as long as the production meets the standard eligibility criteria.
Postproduction
There are many companies in Quebec that specialize in postproduction services and keep up with the latest technology. All your postproduction expenses incurred in Quebec are eligible for the Production Services Tax Credit (PSTC), even if you did not film in the province.
Studios and Equipment
With 450,000 square feet of studio space and additional space planned for the next few years, Montréal is one of the top North American cities for state-of-the-art studio and postproduction facilities. The studios also feature equipment rentals, backlots and on-site offices.
Virtual Production Stages
The technology and expertise required for virtual production are right here in Quebec!
Productions can now leverage the benefits of virtual production sets: by projecting visual effects onto a giant LED screen in real time, the traditional stages of pre-production, production and post-production are now overlapping.
Labour
These labour organizations represent Quebec’s professional and creative talent in the film and television industry.
ACTRA
ACTRA (Alliance of Canadian Cinema, Television and Radio Artists) represents over 23,000 artists, performers and professionals working in English-language recorded media in Canada, including television, film, radio and digital media.
- montreal@actra.ca
- +1 514 844-3318
AQPM
The Association québécoise de la production médiatique (AQPM) advises, represents and accompanies independent film, television and Web production corporations whose productions, both French and English, are recognized in Quebec and at the international level.
Hélène Messier
Chief Executive Officer
- hmessier@aqpm.ca
- 514 397-8600
AQTIS LOCAL 514 IATSE
AQTIS 514 IATSE represents 8,000 freelance professionals in over 200 audiovisual occupations related to design, planning, setup and post-production.
Bernard Larivière
President
- blariviere@aqtis514iatse.com
- 514 844-2113
DGC Quebec
The Directors Guild of Canada (DGC) is a national labour organization that represents over 5,500 key creative and logistical personnel in the screen-based industry covering all areas of direction, design, production and editing.
Chantal Barrette
Business Agent
- cbarrette@dgc.ca
- 514 844-4084
Visual Effects
Thanks to their strategic location, the companies based here have a clear understanding of North American and European needs. The expertise of our technicians and the talent of our many artists are recognized worldwide.
The bonus of the 16% tax credit for labor costs for visual effects and color screen filming is intended to support the technological development of the Quebec industry.
The 16% tax credit bonus for labour costs related to visual effects and green screen filming is intended to support the industry’s technological development in Quebec.
Animation
- With more than 15 ANIMATION STUDIOS, we are ONE OF THE BIGGEST HUB IN THE WORLD. Quebec studios specialize in film and television series. All animation expenses incurred in Quebec are eligible for the QPSTC tax credit.
- An additional 16% may also be granted for labour used for computer-assisted special effects, animation and green screen shooting.
- The total budget must be over CAD 250,000. (See SODEC website for details)
16%
QUEBEC:
North America’s largest and most prestigious hub for visual effects and animation companies.
Entering Canada
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