The Newfoundland and Labrador Regulation 54/25 represents the second amendment to the All-Spend Film and Video Production Tax Credit Regulations under the Income Tax Act, 2000. This regulatory introduces changes aimed at refining and clarifying the definitions and eligibility criteria related to the tax credit for film and video production expenditures. The amendment provides detail on what constitutes eligible salaries, labour expenditures, and service contract expenditures in relation to qualifying productions within the province.

One of the key changes made by this amendment is to subsection 2(h)(i), where the definition now explicitly includes “eligible salaries and labour expenditures” as a fundamental component. This term broadly covers salaries, wages, and payments made by eligible corporations to various individuals and entities involved in the production work performed in Newfoundland and Labrador. The redefinition aims to ensure a clearer understanding of who qualifies as an eligible individual or entity and what types of payments can be counted toward the tax credit.

The regulations define eligible salaries and labour expenditures to encompass several categories of payments. First, it includes the total salary or wages paid to all employees of an eligible corporation who qualify as eligible individuals working on an eligible production within the province. Second, it recognizes payments made to eligible individuals who are not employees but provide work related to the production, including payments to employees of such individuals. Third, the amendment recognizes payments to taxable Canadian corporations owned entirely by eligible individuals, where the corporation’s activities principally consist of providing services by that individual. This ensures that payments flowing through corporations controlled by eligible individuals remain eligible for the credit, reflecting the common business structure in the industry.

An important addition introduced by this amendment is the recognition of “non-resident salary and labour expenditures.” This term is defined to capture payments to employees and individuals who do not qualify as eligible individuals but whose work is still performed in the province in relation to the eligible production. The regulation states that the eligible salaries and labour expenditures may include either the non-resident salary expenditures or the previously defined eligible expenditures, whichever amount is higher.

The amendment thereby supports the growth of the province’s creative industries by offering more transparent, accessible, and appropriately defined incentives. It helps eligible corporations, whether employing individuals directly or contracting services through eligible entities, to confidently claim the tax credits designed to foster economic activity in Newfoundland and Labrador’s film and video production sector. The regulation’s publication and retroactive commencement signal a forward-looking approach to stimulating cultural and economic development through targeted fiscal policy measures.

Newfoundland & Labrador (54/2025) June 27, 2025
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