Film Distribution

Distributing a film or production outside Canada

• By establishing an international business (IB) in British Columbia, a company can receive a full refund of the British Columbia taxes paid on the net income of the qualifying business. 
• Companies can register a business or part of a business in the program. For income to qualify for the refund, one side of the transaction must be with a non-resident.
• The International Business Activity Act (IBAA), legislated by the Province of British Columbia in 2004, provides the legislative framework for the tax incentive program.

Qualifying Activities

Income derived from selling, assigning or licensing rights to a non-resident to distribute a film or television production outside Canada or to exploit anything related to the production outside Canada qualifies as eligible income under the IBAA.

Benefits

• British Columbia boasts a growing film and television industry: motion picture production spending in British Columbia in 2008 was $1.2 billion, an increase of more than $250 million over 2007. 
• A total of 260 productions were shot in British Columbia in 2008, including 65 feature films, 56 television series, 102 television projects (TV movies, mini-series, pilots, documentaries etc) and 37 animated projects.
• British Columbia's geographical advantages include its proximity to Los Angeles, which allows real-time sharing of information and easy travel access, natural scenery, and the wide variety of natural and urban shooting locations available in the province.
• The province is equipped to handle every aspect of production. British Columbia has a sophisticated industry infrastructure from purpose-built stages to state-of-the-art post-production and visual effects facilities, as well as the capacity to service multiple projects.

Registering an IB

Further details on film distribution and the IB program can be found in Bulletin IFA 001, International Financial Activity.

The IB program is administered by the BC Ministry of Finance. For more information regarding the legislation or provincial registration, please visit their website. The information on this website is provided for convenience and guidance only and is not a replacement for the legislation. Businesses considering accessing the benefits under the IBAA should consult with their professional advisors on the applicability of the legislation to their particular circumstance.

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