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Gondaliya CPA

Corporate Tax Filing Experts

Tax Accountant for Film Production Companies in Ontario and Across Canada

We maximize your CPTC, OFTTC and production-services tax credits, track your eligible labour to the dollar, capitalize your production costs as work-in-progress, structure and interim-finance your credit receivable, run your crew and cast payroll, and plan the tax on your film production company. Whether you produce feature films and TV series, documentary and factual, commercial and branded content, or animation and VFX, we handle the production books, the CPTC and OFTTC film tax credits, the eligible-labour tracking and CAVCO and Ontario Creates certification, the work-in-progress cost accounting and interim financing, and the ACTRA, IATSE and DGC crew payroll, and plan the salary, dividends and structure of your production house — with AFFORDABLE flat fees.

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AFFORDABLE Film Production Company Tax Accountant

Running a film production company means your money turns on refundable labour-based tax credits worth a third or more of your Ontario labour, production costs that must be capitalized as work-in-progress instead of expensed, a tax-credit receivable you often have to finance before the refund arrives, and union crew and cast payroll that has to be run every week. That is why you need a specialist accountant for film production companies in Ontario. At Gondaliya CPA, we deliver film-tax-credit and production-WIP accounting, and corporate tax planning for film production companies, providing AFFORDABLE flat-fee support that keeps you CRA-compliant and stops you paying more tax than you owe.

As experienced accountants for film producers, we work with feature film and TV series producers, documentary and factual producers, commercial and branded-content production companies, and animation and VFX studios across Ontario, with year-round support rather than a once-a-year filing. We tell you plainly what you can deduct, what you cannot, and how to capture every CPTC, OFTTC and OCASE credit dollar the Income Tax Act allows.

Let us handle the numbers so you can focus on getting your production shot, delivered and paid.

Gondaliya CPA team - accounting and tax services for film production companies

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Accounting That Understands How a Film Production Company Actually Works

A film production company lives and dies on its tax credits, and the tax turns on maximizing and claiming them correctly. You track eligible labour to the dollar for the CPTC and OFTTC, capitalize production costs as work-in-progress and match them to revenue on delivery, discount a credit receivable to finance the shoot, and run union crew and cast payroll. At Gondaliya CPA, we understand that financial reality and provide practical, film-producer-focused solutions across the GTA and all of Ontario.

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Film Tax Credits

The CPTC at 25% and the OFTTC at 35% of your labour are refundable cash, and they turn on tracking your eligible labour precisely.

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Production WIP & Cost Reports

Your production costs are capitalized as work-in-progress and matched to revenue on delivery, and your cost report drives the claim.

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Interim Financing

Your credit receivable can be discounted by a lender to fund the shoot before the refund arrives.

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Crew & Cast Payroll

Your crew and cast run through T4 and T4A payroll under ACTRA, IATSE and DGC rules.

Stay Compliant and Minimize Your Film Production Company Tax

For a film production company, staying onside with CRA, CAVCO and Ontario Creates while claiming every credit dollar is one job. We keep every filing on schedule, capitalize your production costs correctly, and maximize your refundable film tax credits, so nothing is missed and nothing invites a reassessment.

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CAVCO & Ontario Creates Certification

Your refundable film tax credits turn on certification: CAVCO issues the Canadian Film or Video Production Certificate that unlocks the 25% CPTC, and Ontario Creates administers the 35% OFTTC, the 21.5% OPSTC and the 18% OCASE credit with CRA. We prepare your eligible-labour schedules, your Canadian-content point analysis, and the CPTC, PSTC, OFTTC, OPSTC and OCASE applications so every dollar of qualifying labour and expenditure is captured. Correct certification protects your credit receivable and stops Ontario Creates or CRA from clawing back a claim on eligibility.

CRA Obligations for Film Production Companies

Staying compliant with CRA means far more than one return a year. We manage your 13% HST on production and service fees, T4 and T4A crew and cast payroll with PD7A remittances, correct capitalization of production costs as work-in-progress under ITA section 10, and the credit schedules filed with your T2. By monitoring the areas CRA reviews most often on production files, we reduce your audit exposure and keep your production company financially sound.

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Year-End Deliverables for Film Producers

At year-end, a film production company needs a proper trial balance, financial statements showing production work-in-progress, the tax-credit receivable and equipment, and a T2 with GIFI and the CPTC, OFTTC, OPSTC and OCASE credit schedules. Where an interim lender or broadcaster is involved, you also need CPA-compiled financial statements. Our team prepares every deliverable on time, so your file is audit-ready and financing-ready.

Accounting & Tax Experts for Film Production Companies

Gondaliya CPA film production company accounting expertsGondaliya CPA film production company tax experts
  • AFFORDABLE + Fully Licensed CPA Firm
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Why Choose Our Accounting Services for Film Production Companies?

1
🎯

Tax Planning — Film Credit & Structure Expertise

We know the levers that carry a production house: the CPTC, OFTTC, OPSTC and OCASE credits, the single-purpose production company or LP per project, the section 85 rollover and the $500,000 Small Business Deduction. We claim every credit dollar and tell you which will not survive a CAVCO or CRA review.

2
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Consulting — Production WIP & Cost-Report Bookkeeping

Our bookkeeping is built for producers. We track eligible labour precisely, capitalize production costs as work-in-progress, split above-the-line from below-the-line, and cost every production so your credit claim and your margins are visible in real time.

3
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CRA Representation — Credit, Labour & WIP Audit

When CAVCO, Ontario Creates or CRA reviews your eligible labour, Canadian content or WIP treatment, we prepare the response, defend the credit and cost claims, support your payroll and residuals, and pursue relief on Form RC4288 where penalties came from someone else’s error.

4
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Bookkeeping — Payroll, Financing & Delivery

We run your crew and cast payroll under ACTRA, IATSE and DGC, structure and track the interim financing of your credit receivable, and handle delivery accounting so revenue and the final cost report line up when the production is delivered.

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Film Production Company Tax and Accounting Services in Ontario

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Corporate Tax Filing for Film Production Companies

Professional T2 corporate return preparation with production WIP, the tax-credit receivable, and CPTC and OFTTC credit schedules filed accurately and on time.

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Accounting & Bookkeeping for Film Production Companies

Reliable cost-report and eligible-labour bookkeeping with financial statements, clean records, and monthly reporting built for a film producer.

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Corporate Tax Planning for Film Production Companies

Smart tax planning to maximize your film tax credits, protect the Small Business Deduction, and plan salary, dividends and structure.

Catch-Up Corporate Tax Filing for Film Production Companies

File overdue T2 and HST returns, rebuild missing cost reports, and get back into CRA compliance with accurate catch-up filing support.

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GST/HST Filing for Film Production Companies

AFFORDABLE 13% HST filing with full input tax credits on production spend, so you remit correctly and avoid CRA penalties.

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Corporate Tax Cleanup for Film Production Companies

Claim missed CPTC, OFTTC and OCASE credits, restate production WIP, correct payroll, and bring every filing fully compliant and up to date.

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CRA Audit Resolution Services for Film Production Companies

Expert support for eligible-labour, Canadian-content and WIP audits, CAVCO and Ontario Creates reviews, objections and negotiations.

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CPA Compilation Report (Notice to Reader) for Film Production Companies

CPA-compiled financial statements that broadcasters, financiers and interim lenders accept for financing and delivery.

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Incorporation Services for Film Production Companies

Full incorporation of the production company or LP including NUANS, articles, share structure, and the section 85 rollover of your existing business.

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Catch-Up Bookkeeping Services for Film Production Companies

Per-production cost ledgers rebuilt, HST split and eligible tax-credit labour tracked so back-year T2 returns and CAVCO claims are filed clean.

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US Corporation & LLC Tax Filing for Film Production Companies

1120, treaty-based 1120-F, Form 5472 and foreign tax credit handled for cross-border shoots and US-based SPEs and loan-out corporations.

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Voluntary Disclosure Program for Film Production Companies

Confidential RC199 filings for unreported income, unremitted 13% HST and missed T1135 statements before CRA contacts your production.

Accounting & Tax Services Tailored for Film Production Companies

Real, practitioner-level CPA expertise for feature film and TV series producers, documentary and factual producers, commercial and branded-content production companies, and animation and VFX studios across Ontario — built for how a film production company actually runs.

  • We prepare your T2 return with the Schedule 100 and Schedule 125 GIFI and attach the CPTC and OFTTC credit schedules, so your refundable 25% and 35% labour credits land as cash instead of being lost to a filing omission.
  • We file Schedule 8 splitting your camera and lighting equipment into CCA Class 8 at 20% and your editing suites and computers into Class 50 at 55%, so each pool depreciates correctly and no CRA auditor collapses them into one wrong rate.
  • We carry your production costs as work-in-progress under ITA section 10 and match them to revenue on delivery, so a $2,000,000 shoot straddling year-end is taxed in the correct year rather than reassessed by CRA into an income adjustment.
  • We record your tax-credit receivable on the balance sheet at the amount CAVCO and Ontario Creates will certify, reconciling it to your cost report so the refundable credit is recognized correctly and your $500,000 small-business deduction is not distorted.
  • We complete the CPTC schedule on qualified labour expenditure and the OFTTC schedule on eligible Ontario labour, applying the 10% regional bonus where you shot outside the GTA, so the T2 claim ties to the certificate and survives a CRA credit audit.
  • We run cost-report bookkeeping in QuickBooks Online, Sage 50 or Global Vista, tracking eligible labour to the dollar against your production budget, so your OFTTC claim worth 35% of that Ontario labour ties to the ledger and Ontario Creates does not reject an unsupported figure.
  • We process your crew wages and cast fees through Cast & Crew or Entertainment Partners, posting each to the correct production and department, so a $750,000 payroll on T4 and T4A reconciles to the eligible-labour schedule that drives your 25% CPTC.
  • We split above-the-line costs such as writer, director and producer fees from below-the-line crew and equipment costs, capturing every supplier receipt through Dext, so your production cost report is audit-ready and your 13% HST input tax credits are complete.
  • We capitalize your development costs and pre-production spend as work-in-progress rather than expensing them, mapping your chart of accounts in Xero to each production, so a $120,000 slate in progress is stated correctly and your margin is never overstated.
  • We reconcile the advances from your interim lender against the tax-credit receivable they discount, tracking the financing fee in QuickBooks Online, so your production accounting shows the true net credit proceeds and a $200,000 advance is never booked as revenue by CRA.
  • We structure a single-purpose production company or limited partnership for each project, isolating its financing, credits and liability, so the OFTTC and OPSTC claims stay clean and your production house behind the projects keeps its 12.2% Ontario small-business rate.
  • We model the salary-versus-dividend mix for the owners of your production house, protecting the $500,000 Small Business Deduction under section 125, so your active production income is taxed at the low small-business rate rather than pushed into the 26.5% general corporate rate.
  • We time your CPTC and OFTTC claims and your Canadian-content point count so no eligible labour expenditure is stranded, coordinating CAVCO certification with your fiscal year-end so the refundable 25% and 35% credits are claimed in the year they fund your next production.
  • We plan the $1.25M Lifetime Capital Gains Exemption years ahead of a library sale, structuring qualified small business corporation shares so the gain on selling your film catalogue and its distribution revenue is sheltered instead of taxed at up to 26.76%.
  • We use a section 85 rollover to move a completed production and its rights into a holding structure at elected amounts, deferring the capital gain, and we keep associated companies from grinding down your shared $500,000 small-business limit across projects.
  • We file every unfiled T2 and outstanding HST year, reconstructing your production costs and eligible labour from cost reports and payroll records, and recover the 13% input tax credits that unfiled years left unclaimed instead of guessing at figures CRA will challenge.
  • We stop the late-filing penalty of 5% of the balance owing plus 1% per month from compounding by filing your oldest outstanding T2 first, because once CRA issues a demand the penalty doubles to 10% plus 2% per month.
  • We rebuild your production work-in-progress and tax-credit receivable for each missed year from budgets and cost reports, so catch-up returns capitalize a $300,000 shoot under ITA section 10 and recognize revenue on delivery rather than overstating income CRA would tax twice.
  • We recover missed CPTC, OFTTC and OCASE credits across every unfiled year, because a catch-up T2 that reports income but ignores the refundable 25%, 35% and 18% labour credits hands CRA tens of thousands of dollars you never actually owed.
  • We file a Voluntary Disclosures Program application on Form RC199 before CRA contacts you, which cancels penalties in full and gives 50% interest relief on the older years, protecting your broadcaster and interim-lender relationships on the next production.
  • We charge and remit 13% HST on your production and service fees and claim the full input tax credits on your production spend, so you never over-remit or leave recoverable tax on camera rentals, post-production and studio costs on the table.
  • We register your HST account the moment taxable production revenue crosses the $30,000 small-supplier threshold across four consecutive quarters, so CRA cannot assess your production company for tax you failed to collect once you exceeded the limit.
  • We reconcile line 101 of your GST/HST return to the production and service fee revenue on your T2, because CRA’s matching program compares the two and a $150,000 mismatch is one of the fastest ways a production company is flagged for audit.
  • We claim input tax credits on the business-use portion of edit suites, camera and lighting equipment and studio rent at the 13% Ontario rate on line 108, a recovery producers miss when the capital and expense split is never documented.
  • We keep your refundable film tax credits and government funding out of your taxable supplies where they are not consideration, so you never remit 13% HST on a $500,000 credit or a broadcaster top-up that was never a sale.
  • We claim the missed OCASE credit on your eligible Ontario animation and VFX labour a prior preparer left off, filing an amended T2 to recover the refundable 18% credit as cash back to your studio.
  • We reclassify labour that was wrongly excluded from your eligible labour expenditure, moving qualifying Canadian crew wages into the CPTC and OFTTC base, so a $250,000 reclassification lifts your refundable credit instead of sitting in non-eligible cost.
  • We restate prior-year production work-in-progress where a previous preparer expensed costs on cash instead of capitalizing them under ITA section 10, correcting an amended T2 so a $180,000 balance lands in the year the production is delivered.
  • We correct crew and cast payroll where source deductions and the PD7A were mis-remitted, aligning T4 and T4A slips to the eligible-labour schedule, so your corrected 25% CPTC claim is supported and CRA cannot deny it on a payroll mismatch.
  • We file the amended T2 and adjust your instalments where the cleanup changes your balance, and we correct any shareholder loan drawn during production under subsection 15(2), so a $100,000 advance is repaid within the deadline and not taxed as income.
  • We defend your eligible labour expenditure on a CRA or Ontario Creates credit audit, presenting payroll records, timesheets and your cost report that prove the labour claimed for the 25% CPTC and 35% OFTTC was genuinely qualifying.
  • We respond to CAVCO Canadian-content reviews with the point analysis and personnel documentation the certificate requires, protecting your Canadian Film or Video Production Certificate and the refundable 25% CPTC from a denial worth hundreds of thousands of dollars.
  • We defend your production work-in-progress and revenue timing on audit, presenting budgets, cost reports and delivery records that prove a $1,500,000 shoot was capitalized under ITA section 10 and revenue recognized on delivery, closing a CRA query with no reassessment.
  • We handle payroll and residuals reviews by reconciling your T4 and T4A slips and union remittances under ACTRA, IATSE and DGC to the PD7A, resolving discrepancies before CRA imputes income and adds the 50% gross-negligence penalty under subsection 163(2).
  • We file RC4288 Taxpayer Relief applications for penalties and interest caused by a prior accountant’s error, covering the ten calendar years preceding the request, and file the Notice of Objection within the 90-day window to stop the 10% penalty and protect your credit-claim appeal rights.
  • We prepare CSRS 4200 compilation engagement financial statements for your production company, which broadcasters, financiers and interim lenders require when a $2,000,000 production or an interim-financing facility cannot proceed on tax returns alone.
  • Your compiled statement of financial position shows production work-in-progress, the tax-credit receivable, equipment and library rights at book value for two fiscal years, giving an interim lender the picture a bare T2 covering $500,000 of assets cannot provide.
  • We compile the statement of operations with broadcaster licence fees, distribution revenue and production costs classified consistently across two years and tied to the T2 filed with CRA, so a financier sees whether your 20% margin is holding rather than reclassified noise.
  • The required CSRS 4200 communication discloses that no audit or review was performed, and the notes set out your basis of accounting and any shareholder loans under subsection 15(2), without which an interim lender rejects a $1,000,000 financing application.
  • We deliver compiled statements within 30 days of receiving your complete cost report, WIP and payroll records, because interim-financing and broadcaster deliverables collapse when a lender’s conditional approval on a $750,000 facility expires before the file is produced.
  • We incorporate your production company under the Ontario Business Corporations Act with a NUANS name search and Articles of Incorporation, giving you the limited liability and the 12.2% small-business rate a personal-name production never provides.
  • We complete the section 85 rollover on Form T2057 to move your equipment, development slate and goodwill into the new corporation at elected amounts, deferring the capital gain and recapture a straight sale of those assets would tax at up to 26.76%.
  • We register your Business Number, 13% HST account and payroll account, and set up a single-purpose production company or limited partnership per project, so each production can invoice broadcasters, hire crew and hold its own credits from day one.
  • We design common and preferred share classes at incorporation so dividends can be paid to family shareholders and the $1.25M Lifetime Capital Gains Exemption can be multiplied on a future sale of your film library and qualified small business corporation shares.
  • We set your first fiscal year-end up to 53 weeks after incorporation and prepare the opening balance sheet, minute book and resolutions, deferring your first T2 balance-due date and pushing instalments past the $3,000 net-tax threshold into a later year.
  • We rebuild a separate cost ledger for each production and SPE from your scattered receipts, call sheets and petty-cash logs, so eligible labour, above-the-line fees and post-production spend are coded by project rather than lumped into one company account.
  • We separate your HST correctly on every production invoice, charging 13% on taxable production services while tracking the input tax credits on gear rentals, studio hire and per-diems, then reconcile the net HST owing that your catch-up periods left unfiled.
  • We tag eligible Canadian labour expenditures against each project so your CPTC, PSTC, OFTTC, OPSTC and OCASE claims tie back to reconstructed payroll, separating assistant-to and contractor amounts that do not qualify for the refundable credit.
  • We clean up back payroll for cast, crew and loan-out corporations, reconciling ACTRA and IATSE remittances, T4 and T4A slips and the source deductions on a $500,000 production wage bill that was run without a proper payroll account.
  • We prepare and file the back-year T2 returns for your production company and each single-purpose entity, matching the reconstructed ledgers, claiming CCA on owned camera and grip equipment and clearing the CRA arrears before your next credit certification stalls.
  • We prepare Form 1120 for the US C-corporation you use to contract American cast, crew and distributors, reporting the production-service revenue earned inside the United States and the deductions for on-location wages, equipment and studio costs incurred on those shoots.
  • We file Form 1120-F on a treaty basis when your Canadian production company shoots in the US, using the Canada-US treaty to claim no permanent establishment and protect income the IRS would otherwise tax at the 21% federal corporate rate.
  • We complete Form 5472 for every reportable transaction between your US film entity and its foreign parent or loan-out, disclosing intercompany financing and management fees, because a single missed 5472 carries an automatic $25,000 IRS penalty per year.
  • We resolve the hybrid mismatch created when a US LLC is a flow-through to the IRS but a corporation to the CRA, structuring the foreign tax credit so your producers are not taxed twice on the same distribution income.
  • We assess US-service permanent establishment and state nexus for cross-border shoots, tracking crew days in California, Georgia and New York so we can file the state corporate and withholding returns triggered when your production physically works in each jurisdiction.
  • We prepare and file Form RC199 to bring your production company back into compliance, packaging the unreported project income, missed slips and supporting ledgers so the CRA accepts the voluntary disclosure before an audit of your credit claims begins.
  • We confirm your disclosure meets all five acceptance conditions – voluntary, complete, involving a penalty, at least one year overdue and with payment of the estimated tax – so your film company is not rejected after revealing the unfiled years.
  • We quantify the unreported distribution and licensing income and the unremitted 13% HST on your taxable production services, calculating a $60,000 back-tax exposure so the disclosure is filed complete rather than triggering a second review.
  • We file the missed Form T1135 foreign income verification statements for the US bank accounts, foreign co-production interests and overseas equipment your production held above the $100,000 cost threshold, folding them into the same voluntary disclosure package.
  • We determine whether your production qualifies for the general or the limited VDP track, arguing against gross negligence where the omissions were disorganized rather than deliberate, to preserve the full penalty relief and interest reduction on the disclosed years.

Film Production Tax & Credit Check

Six quick questions on your film tax credits, eligible labour, production WIP, interim financing, payroll and certification. No fee shown.

1. Are you claiming the CPTC and OFTTC on your labour?

2. Are you tracking your eligible Ontario labour precisely?

3. Are you capitalizing your production costs as work-in-progress?

4. Are you interim-financing your tax-credit receivable?

5. Are you running your crew and cast on compliant payroll?

6. Are you certified with CAVCO or Ontario Creates?

Free CPA Consultation for Film Production Companies

Case Studies: Film Production Company Accounting & Tax

Toronto Feature Film Producer — CPTC & OFTTC Labour Credits Maximized

The problem: A Toronto feature film producer was building rough eligible-labour figures in a spreadsheet, had never tied the CPTC and OFTTC claims to a proper cost report, and was expensing all production spend as incurred instead of carrying it as work-in-progress. Two above-the-line contracts had been left out of the eligible-labour base entirely, and the credit receivable had never been used to bridge the cash-flow gap during the shoot.

What we did: We rebuilt the cost report in Global Vista, tracked eligible labour to the dollar, claimed the CPTC at 25% of qualified labour and the OFTTC at 35% of eligible Ontario labour, capitalized production costs as WIP under ITA section 10, and arranged interim financing against the certified tax-credit receivable.

The result:

  • Maximized a combined $410,000 in refundable CPTC and OFTTC credits
  • Freed $180,000 of shoot cash flow through interim financing
  • Cleared the claim with CAVCO and Ontario Creates with no adjustment

Ottawa Documentary Producer — Production WIP & Credit Claim Corrected

The problem: An Ottawa documentary and factual producer had a prior accountant who expensed all production costs on cash and recognized the broadcaster licence fee up front, badly misstating income across two fiscal years. The animation and VFX labour on the series had never been claimed for the OCASE credit, the OFTTC eligible-labour schedule was incomplete, and the tax-credit receivable was missing from the balance sheet entirely.

What we did: We restated the production work-in-progress under ITA section 10, matched costs to revenue on delivery, filed amended T2 returns claiming the 35% OFTTC and the 18% OCASE credit on the eligible animation and VFX labour, and recorded the credit receivable at the certified amount.

The result:

  • Recovered $146,000 in previously unclaimed OFTTC and OCASE credits
  • Corrected a $220,000 WIP and revenue-timing misstatement before audit
  • Amended two T2 years with no CRA reassessment

Hamilton Regional Production — Regional Bonus, Payroll & Structure

The problem: A Hamilton production company shooting a regional TV series outside the GTA was running crew and cast payroll through a generic bookkeeper with no union compliance, had never captured the OFTTC 10% regional bonus it qualified for, and was operating every project through one corporation, mixing financing, credits and liability across unrelated productions.

What we did: We set up T4 and T4A crew and cast payroll through Cast & Crew under ACTRA, IATSE and DGC with PD7A remittances, restructured the business into a single-purpose production company per project, and built the eligible-labour schedule to capture the 35% OFTTC plus the 10% regional bonus for shooting outside the GTA.

The result:

  • Captured the 10% OFTTC regional bonus on eligible Ontario labour
  • Compliant ACTRA, IATSE and DGC payroll set up on Cast & Crew
  • Each production isolated in a single-purpose company structure

Our Simple Process

How We Work With Film Production Companies

Know Exact Fees within 2 Minutes NOW

Our clear, efficient process ensures every step is transparent, building trust and long-term client relationships.

Here’s a simplified process approach:
Step 1

Kickoff (Document Request)

Collect prior T2 returns, production budgets and cost reports, eligible-labour schedules, CAVCO and Ontario Creates applications, payroll and union records, financing agreements, and bank statements.

Step 2

First 30 Days (Cleanup & Setup)

Set up QuickBooks Online, Sage 50 or Global Vista, build your cost-report and eligible-labour structure, assign the credit schedules, and configure crew and cast payroll.

Step 3

Monthly Close

Monthly reconciliations, receipt capture, cost-report and WIP updates, eligible-labour tracking, HST, and payroll logging.

Step 4

Quarterly Planning Review

Credit maximization, HST position, production WIP review, crew and cast payroll, and interim-financing planning.

Step 5

Year-End Close, Credit Filing & T2 Filing

Trial balance, financial statements with production WIP, T2 with GIFI and CPTC, OFTTC, OPSTC and OCASE credit schedules, and CRA preparation.

Get Your Film Production Company Taxes Done Right Today

Transparent Pricing for Film Production Companies

Affordable Pricing for Film Production Companies

Know Exact Fees within 2 Minutes NOW

We believe in clear, upfront pricing so you know exactly what to expect. All fees include HST.

  • Tax Preparation (Corporation) — From $400
  • Tax Return Filing (Corporation) — From $400
  • Tax Compliance Audit — FREE CRA audit support for our clients
  • Tax Strategy — FREE for our clients
  • Accounting Base Plan — From $100 per month
  • Bookkeeping Management — Free for our Accounting clients
  • Financial Reporting — Free for our Accounting clients
  • Business Formation — Flat $35
  • Incorporation Process — Flat $35
  • Entity Setup Assistance — Flat $35
  • Full-Service Payroll — From $125 per month

Payment is by Interac e-Transfer to info@gondaliyacpa.ca only. Security question: Not Applicable, as auto-deposit is enabled.

Meet Your Lead Film Production Accountant

Meet your lead film production accountant. As your film-tax-credit and production tax adviser, you deal with the same two people every year.

Sharad Gondaliya CPA

Sharad Gondaliya, CPA

Principal

Bio

647-212-9559
sharad@gondaliyacpa.ca

Vandana Goel CPA

Vandana Goel, CPA

Accounting Specialist

Bio

647-250-0242
vandana@gondaliyacpa.ca

What Our Clients Say

1300+ five-star reviews from film production companies and business owners across Ontario and Canada.

Serving Film Production Companies Across Ontario

Our CPA team provides specialized accounting and tax solutions for film production companies throughout Ontario. We understand how a project-based production actually operates, how the CPTC, OFTTC and OCASE credits turn on your eligible labour, and what CAVCO, Ontario Creates and CRA look for on a film-credit claim.

Toronto (ON)

55 Queen St E Ste 1205, Toronto, ON M5C 1R6, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Mississauga (ON)

5373 Bullrush Dr, Mississauga, ON, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Brampton (ON)

4 Starhill Crescent, Brampton, ON L6R 2P9, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Scarborough (ON)

24 Clementine Square, Scarborough, ON M1G 2V7, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Vaughan (ON)

19 Cabinet Crescent, Woodbridge, ON L4L 6H9, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Oshawa (ON)

210 Durham St, Oshawa, ON L1J 5R3, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Ottawa (ON)

2090 Neepawa Ave a314, Ottawa, ON K2A 3L6, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Etobicoke (ON)

60 Stevenson Rd #1601, Etobicoke, ON M9V 2B4, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Hamilton (ON)

70 Starling Dr, Hamilton, ON L9A 0C5, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Guelph (ON)

1155 Gordon St, Guelph, ON N1L 1S8, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Windsor (ON)

4387 Guppy Ct, Windsor, ON N9G 2N8, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

North York (ON)

150 Graydon Hall Dr #912, North York, ON M3A 3B2, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Film Production Company Accounting & Tax FAQs

Should I incorporate my film production company?
Most film production companies should incorporate, and many run a single-purpose production company or limited partnership for each project. Incorporation gives you limited liability, a 12.2% Ontario combined rate on the first $500,000 of active income, and a clean structure to hold your credits and intellectual property project by project. A corporation is also the vehicle that claims the refundable CPTC, OFTTC, OPSTC and OCASE credits and carries the tax-credit receivable. It lets you pay a salary-and-dividend mix to the owners and access the $1.25M Lifetime Capital Gains Exemption on a future library or share sale. When you convert an existing production business, we handle the section 85 rollover on Form T2057 so the assets move across without triggering tax. Incorporation does bring annual T2 filing and higher compliance costs, so we model it for your actual numbers rather than applying a rule of thumb. We handle the incorporation, the single-purpose structure per project, and the CRA registrations.
How are film production companies taxed in Canada?
Film production companies are taxed as corporations on their net income, but the defining feature is the refundable film tax credits. Active production income up to $500,000 is taxed at the 12.2% Ontario small-business rate, while the CPTC, OFTTC, OPSTC and OCASE credits are refundable cash paid regardless of whether you owe tax. Production costs are capitalized as work-in-progress under ITA section 10 and matched to revenue on delivery, and you file a T2 with GIFI and the credit schedules. We plan the whole picture so your credits are maximized and your tax is minimized.
What is the CPTC and how much is it worth?
The Canadian Film or Video Production Tax Credit is a federal refundable credit worth 25% of your qualified labour expenditure on a CAVCO-certified Canadian-content production. It is paid in cash through your T2, so it funds your next production even if the company has no tax to pay. The claim turns on tracking eligible labour precisely and on meeting CAVCO’s Canadian-content point requirements. We prepare the eligible-labour schedule, the CAVCO application and the CPTC schedule on your return.
What is the OFTTC and the regional bonus?
The Ontario Film and Television Tax Credit is a provincial refundable credit worth 35% of your eligible Ontario labour on a certified Ontario production, administered by Ontario Creates with the CRA. If you shoot outside the Greater Toronto Area, an additional 10% regional bonus applies to your eligible regional labour. It stacks with the federal CPTC, so a Canadian-content production can claim both. We build the eligible-labour schedule so the 35% credit and the 10% regional bonus are captured in full.
What is the difference between the OFTTC and the OPSTC?
The OFTTC is for your own Canadian-content productions and is calculated at 35% of eligible Ontario labour, while the Ontario Production Services Tax Credit is for service and non-certified productions and is calculated at 21.5% of qualifying Ontario expenditures, not just labour. You generally claim one or the other on a given production, not both. The OFTTC pairs with the federal CPTC and the OPSTC pairs with the federal PSTC at 16%. We determine which stream fits your production and maximize the claim.
How do I track eligible labour for my film tax credits?
Eligible labour is the heart of every film tax credit, so it has to be tracked to the dollar. We separate qualifying Canadian and Ontario labour from non-eligible cost, tie it to your payroll and cost report in Global Vista or QuickBooks Online, and reconcile it to your T4 and T4A slips. Only genuinely eligible labour supports the 25% CPTC and 35% OFTTC, and CAVCO or Ontario Creates will reject unsupported figures. We build the schedule so the claim holds up on review.
How do I account for my production costs and work in progress?
Production costs are capitalized as work-in-progress or inventory under ITA section 10, not expensed as you spend, and matched to revenue when the production is delivered. That keeps a shoot straddling year-end from being misstated and ensures your income lands in the correct year. Your detailed cost report drives both the financial statements and the credit claim. We run the WIP accounting and reconcile it to your budget and the tax-credit receivable.
What CCA class applies to my camera and editing equipment?
Your camera and lighting equipment go into CCA Class 8 at 20%, while your editing suites and computers go into Class 50 at 55%; much production equipment is rented rather than owned, in which case the rental is a deductible production cost. We file Schedule 8 splitting each pool correctly, so nothing is collapsed into one wrong rate and your capital costs are written off at the right speed.
How does interim financing of my tax credit work?
Your refundable film tax credits are certain enough that a lender will advance cash against the credit receivable before CRA pays the refund, discounting it for a financing fee and interest. That interim financing funds the shoot when your credits are your largest asset. We record the receivable at the certified amount, track the advance and financing cost, and make sure the advance is booked as a liability rather than revenue.
Do I charge HST on my production and service fees?
Yes. Production and service fees are taxable, so you charge and remit 13% HST once you pass the $30,000 small-supplier threshold, and you claim input tax credits on your production spend. Refundable film tax credits and government funding stay out of your taxable supplies where they are not consideration, so you never remit HST on a credit. We file the HST returns and reconcile line 101 to your T2.
How do I pay my crew and cast under ACTRA, IATSE and DGC?
Your crew and cast run through T4 payroll, usually via a payroll service such as Cast & Crew or Entertainment Partners, with contractors on T4A, all under ACTRA, IATSE and DGC agreements. Source deductions are remitted on the PD7A, and residuals are handled per the union agreements. We set up and run the payroll so it reconciles to the eligible-labour schedule that drives your credits.
What records does CRA and CAVCO want for a film-credit claim?
For a film-credit claim, CRA, CAVCO and Ontario Creates want your CAVCO or Ontario Creates certificate, the eligible-labour schedule, payroll records and T4 and T4A slips, the detailed production cost report, contracts for above-the-line personnel, and the Canadian-content point documentation. They also want your T2, GIFI and the credit schedules. We assemble the whole package so the claim is supported and survives a review.
How do I get started?
Book a free consultation and you will know your exact fees within two minutes. Call 647-212-9559 or email info@gondaliyacpa.ca.

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Film Production Company Accounting & Tax Done Right.

T2 filing, CPTC, OFTTC, OPSTC and OCASE film tax credits, eligible-labour tracking, production WIP, interim financing, HST and crew and cast payroll under one roof. AFFORDABLE flat fees, no hourly billing. Licensed CPA Ontario. 1300+ five-star reviews. 30-Day Money-Back Guarantee.



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