If your production company provides services to Canadian or foreign film projects, the Film or Video Production Services Tax Credit (PSTC) lets you recover a portion of your Canadian labour costs. This federal refundable tax credit encourages film and television production jobs in Canada and applies to work performed here by Canadian residents. CAVCO, part of Canadian Heritage, runs this program. The Canadian Audio-Visual Certification Office (CAVCO) reviews applications and certifies productions.
Understanding the eligibility requirements is key to a successful PSTC application. Both the corporation and the production must meet specific criteria.
To qualify, the applicant must be:
Non-profits and corporations controlled by tax-exempt entities are not eligible.
The PSTC applies to accredited film or video productions that:
This credit is commonly used for service productions, including foreign-owned projects filming in Canada.
Applying for the Film or Video Production Services Tax Credit is a two-part process involving CAVCO certification and your corporate tax return.
You must submit an application to CAVCO to have your production certified as an accredited production. This includes:
CAVCO reviews whether the production and applicant corporation meet PSTC requirements.
If approved, CAVCO issues a PSTC certificate confirming the production’s eligibility and the amount of eligible labour expenditures.
You then claim the tax credit by:
Because the PSTC is refundable, you can receive the credit even if you owe no corporate income tax.
GrantHub’s eligibility matcher can help you check if PSTC—and stackable provincial credits—apply to your production and location.
The Film or Video Production Services Tax Credit can be combined with provincial and territorial film tax credits, such as:
However, you cannot claim PSTC and CPTC on the same production.
If you’re unsure which combination of credits you can claim, GrantHub’s database allows you to compare federal and provincial programs for your project.
Claiming PSTC and CPTC together
These credits are mutually exclusive. Choosing the wrong one can delay or deny your claim.
Including non-Canadian labour costs
Only salaries and wages paid to Canadian residents for work done in Canada qualify.
Missing CAVCO deadlines
Late or incomplete certification applications are a common reason for processing delays.
Assuming foreign-owned companies are ineligible
Foreign-owned corporations with a permanent establishment in Canada can still qualify if all conditions are met.
Q: How much is the Film or Video Production Services Tax Credit worth?
The PSTC is worth 16% of eligible Canadian labour expenditures incurred for work performed in Canada.
Q: Is the PSTC refundable?
Yes. The PSTC is a refundable federal tax credit, meaning you can receive a payment even if you have no tax payable.
Q: Can foreign actors or crew be included?
No. The credit applies only to eligible Canadian labour expenditures. Payments to non-Canadian residents do not qualify.
Q: Can PSTC be combined with provincial film tax credits?
Yes. PSTC is commonly stacked with provincial and territorial production services credits, subject to each program’s rules.
Q: Who administers the PSTC?
CAVCO, part of Canadian Heritage, certifies productions. The CRA administers the tax credit through your corporate tax return.
The Film or Video Production Services Tax Credit allows you to recover a portion of your Canadian payroll, especially when combined with provincial incentives. GrantHub monitors hundreds of active grant and tax credit programs across Canada—use the platform to see which ones match your production company’s location, budget, and service model.
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