Film Tax Incentive Canada: A Guide to Canada's Film Tax Credits
16% Federal Production Services Tax Credit — Stackable With Provincial Credits for 45%+ on Canadian Labour
This guide covers the key federal and provincial film tax credits that make Canada one of the most competitive destinations for international shoots.
As Fixers in Canada, we bring local expertise to international productions filming in Canada. Our team's deep knowledge of local regulations, crew networks, and production infrastructure ensures your project runs smoothly from pre-production through delivery.
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Common Questions
Can I combine the federal and provincial credits?
Yes. The federal 16% Production Services Tax Credit (PSTC) stacks on top of provincial production services credits — such as British Columbia (36%), Ontario OPSTC (21.5%), and Quebec QPSTC (25%) — on the relevant Canadian labour. The federal credit is reduced by provincial assistance on the same labour, so the stack is structured at the corporate level rather than double-counted.
When will I receive the credit?
The PSTC is a refundable tax credit, not a cash rebate. It is claimed on the Canadian corporation's T2 tax return and paid out as a refund once the Canada Revenue Agency assesses the return.
Is there a cap on the credit amount?
No. There is no cap on the federal PSTC per production. The credit is 16% of qualified Canadian labour, with no maximum on the total amount.
Do I need a Canadian production company?
Yes. The credit is claimed by a Canadian production services corporation that controls the production's Canadian activities. Fixers in Canada can serve as your local partner and handle the CAVCO accreditation and CRA filing.
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Maximize Your Production Budget in Canada
The federal PSTC requires no Canadian-content or cultural test, so international productions can access it simply by running their Canadian spend through a Canadian production services corporation. Provincial credits then stack on top, and digital animation and VFX work can attract additional provincial bonuses. Contact Fixers in Canada to discuss your next project.