Form T2 Schedule 388 "Manitoba Film and Video Production Tax Credit (2019 and Later Tax Years)" - Canada

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Clear Data
Schedule 388
Code 1901
Manitoba Film and Video Production Tax Credit
Protected B
(2019 and later tax years)
when completed
Corporation's name
Business number
Tax year-end
Year
Month Day
Use this schedule to claim a Manitoba Film and Video Production Tax Credit under sections 7.5 to 7.9 of the Income Tax Act (Manitoba). Complete a
separate Schedule 388 for each eligible film.
An eligible film corporation may claim one of the following:
the cost-of-salaries credit for the tax year
the cost-of-production credit for the tax year
The cost-of-salaries credit includes the basic tax credit, frequent filming bonus tax credit, the rural bonus tax credit and the producer bonus tax credit.
The cost-of-production credit includes eligible salaries, eligible service contract expenditures, eligible parent-subsidiary amounts, eligible tangible property
expenditures and eligible accommodation expenditures.
The terms eligible individual, eligible non-resident individual and eligible employee are defined in subsection 7.5(1) of the Income Tax Act (Manitoba).
To claim this credit, include the following items with your T2 Corporation Income Tax Return:
a Certificate of Completion (if the production was completed in the tax year), or an Advance Certificate of Eligibility (if the production was not completed in
the tax year) issued by Manitoba Film and Music
a completed copy of this form – you can complete one form for episodes in a series that are certified eligible films
all the documents listed in Part 12 on page 5 of this form
Part 1 – Contact information
Name of person to contact for more information
151
153
Telephone number
Part 2 – Identifying the film or video production
Title of production
Year
Month
Day
201
202
Date the production was completed
(delivery answer print)
Certificate number
Year
Month
Day
203
204
Date the principal photography began
Part 3 – Eligibility
311
Yes
No
1. Is the corporation incorporated in Canada? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
312
Yes
No
2. Is the corporation a taxable Canadian corporation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
313
Yes
No
3. Does the corporation primarily carry on the business of film or video production? . . . . . . . . . . . . . . . . . . . . . . . . . . . .
314
Yes
No
4. Does the corporation have a permanent establishment in Manitoba?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note 1
Portion of salaries and wages
paid to eligible employees and employees who are eligible non-resident individuals
Total number of individuals who are employees of the production corporation in the tax year, whether or not they worked
320
on this film . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
All salaries and wages the corporation has paid to employees in the tax year. (Do not include amounts paid to
330
individual contractors or corporations) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Salaries and wages paid to eligible employees (including employees who are eligible non-resident individuals)
in the tax year for work performed on this film in Manitoba
Note 2
(Do not include amounts paid to individual contractors or
331
corporations) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portion of the total salaries and wages that are paid to eligible employees and employees who are eligible
340
non-resident individuals (line 331 divided by line 330) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Important – If you answered No to any of questions 1 to 4, or if the percentage at line 340 is less than 25%, you are not eligible
for the Manitoba film and video production tax credit.
Note 1: Salary or wages for which a T4 has been issued by the eligible corporation.
Note 2: For a documentary, include the amount for work performed in Manitoba and any other locations.
T2 SCH 388 E (19)
(Ce formulaire est disponible en français.)
Page 1 of 5
Clear Data
Schedule 388
Code 1901
Manitoba Film and Video Production Tax Credit
Protected B
(2019 and later tax years)
when completed
Corporation's name
Business number
Tax year-end
Year
Month Day
Use this schedule to claim a Manitoba Film and Video Production Tax Credit under sections 7.5 to 7.9 of the Income Tax Act (Manitoba). Complete a
separate Schedule 388 for each eligible film.
An eligible film corporation may claim one of the following:
the cost-of-salaries credit for the tax year
the cost-of-production credit for the tax year
The cost-of-salaries credit includes the basic tax credit, frequent filming bonus tax credit, the rural bonus tax credit and the producer bonus tax credit.
The cost-of-production credit includes eligible salaries, eligible service contract expenditures, eligible parent-subsidiary amounts, eligible tangible property
expenditures and eligible accommodation expenditures.
The terms eligible individual, eligible non-resident individual and eligible employee are defined in subsection 7.5(1) of the Income Tax Act (Manitoba).
To claim this credit, include the following items with your T2 Corporation Income Tax Return:
a Certificate of Completion (if the production was completed in the tax year), or an Advance Certificate of Eligibility (if the production was not completed in
the tax year) issued by Manitoba Film and Music
a completed copy of this form – you can complete one form for episodes in a series that are certified eligible films
all the documents listed in Part 12 on page 5 of this form
Part 1 – Contact information
Name of person to contact for more information
151
153
Telephone number
Part 2 – Identifying the film or video production
Title of production
Year
Month
Day
201
202
Date the production was completed
(delivery answer print)
Certificate number
Year
Month
Day
203
204
Date the principal photography began
Part 3 – Eligibility
311
Yes
No
1. Is the corporation incorporated in Canada? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
312
Yes
No
2. Is the corporation a taxable Canadian corporation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
313
Yes
No
3. Does the corporation primarily carry on the business of film or video production? . . . . . . . . . . . . . . . . . . . . . . . . . . . .
314
Yes
No
4. Does the corporation have a permanent establishment in Manitoba?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note 1
Portion of salaries and wages
paid to eligible employees and employees who are eligible non-resident individuals
Total number of individuals who are employees of the production corporation in the tax year, whether or not they worked
320
on this film . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
All salaries and wages the corporation has paid to employees in the tax year. (Do not include amounts paid to
330
individual contractors or corporations) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Salaries and wages paid to eligible employees (including employees who are eligible non-resident individuals)
in the tax year for work performed on this film in Manitoba
Note 2
(Do not include amounts paid to individual contractors or
331
corporations) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portion of the total salaries and wages that are paid to eligible employees and employees who are eligible
340
non-resident individuals (line 331 divided by line 330) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Important – If you answered No to any of questions 1 to 4, or if the percentage at line 340 is less than 25%, you are not eligible
for the Manitoba film and video production tax credit.
Note 1: Salary or wages for which a T4 has been issued by the eligible corporation.
Note 2: For a documentary, include the amount for work performed in Manitoba and any other locations.
T2 SCH 388 E (19)
(Ce formulaire est disponible en français.)
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Clear Data
Protected B
when completed
Part 4 – The production commencement time
Year
Month
Day
420
Enter the production commencement date, the earlier of a or b: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Year
Month
Day
421
a) the date principal photography began . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b) the latest of:
Year
Month
Day
i) the date the corporation or its parent first incurred development labour costs for the
425
development of script material on which the production is based . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Year
Month
Day
426
ii) the date the corporation or its parent first acquired a right for the story that is the basis of the final script . . . .
Year
Month
Day
427
iii) the date that is two years before the date on which principal photography began . . . . . . . . . . . . . . . . . . . . . .
Part 5 – Eligible salaries
Note 3
Eligible salaries
for services rendered by eligible individuals
505
Salary or wages (paid to eligible individuals). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Remuneration paid to:
510
eligible individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
511
taxable Canadian corporations (solely owned by an eligible individual). . . . . . . . . . . . . . . . . . . . . .
512
other taxable Canadian corporations (for their eligible employees) . . . . . . . . . . . . . . . . . . . . . . . . .
partnerships carrying on business in Canada (for their members who are eligible individuals
513
or eligible employees) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtotal (total of lines 510 to 513)
5A
Labour expenditures incurred by a parent corporation and transferred to its wholly-owned subsidiary (the corporation)
520
under a reimbursement agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
550
Eligible salaries for services rendered by eligible individuals (line 505 plus amount 5A plus line 520) . . . . . . . . . . . . . . . . . .
The following portion of Part 5 should be completed only if you are filing this claim for the tax year during which the production was completed and if
you are attaching a Certificate of Completion to your claim.
Eligible salaries for services provided by eligible non-resident individuals (calculate these amounts separately for each year of the production and
enter the totals for all years below).
Eligible salaries the corporation would have paid if the services provided by eligible non-resident
individuals were provided by eligible individuals (include salary or wages and remuneration, but do
571
not include amounts for taxable benefits received by eligible non-resident individuals) . . . . . . . . . . . .
5B
Eligible salaries for services rendered by eligible individuals (line 550). . . . . . . . . . . . . . . . . . . . . . . . . . . . .
580
Enter the rate of the deemed labour cap that is specified on the Certificate of Completion. . . . . . . . . .
5C
Maximum eligible salaries for eligible non-resident individuals (amount 5B multiplied by line 580). . . . . . .
590
Eligible salaries for services rendered by eligible non-resident individuals (the lesser of line 571 and amount 5C) . . . . . . . .
Note 3: Manitoba eligible salaries include amounts that are:
a) reasonable in the circumstances
b) directly attributable to the production of the eligible film or video
c) incurred in the tax year, or the previous tax year, and paid no later than 60 days after the end of the tax year
d) for the stages of production from the production commencement time to the end of the post-production stage
Manitoba eligible salaries do not include amounts that are incurred in the immediately preceding year and paid within 60 days after the end
of that preceding year.
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Clear Data
Protected B
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Part 6 – Basic tax credit
6A
Eligible salaries for services rendered by eligible individuals (line 550 in Part 5) . . . . . . . . . . . . . . . . . . . . .
6B
Eligible salaries for services rendered by eligible non-resident individuals (line 590 in Part 5) . . . . . . . . . . .
Subtotal (amount 6A plus amount 6B)
6C
610
Eligible salaries included in amount 6C that may be claimed by another corporation . . . . . . . . . . . . . .
Subtotal (amount 6C minus line 610)
6D
Amount of eligible salaries allocated to the corporation through a joint allocation agreement
615
that was filed with the Minister of National Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtotal (amount 6D plus line 615)
6E
Note 4
Total amount of government assistance
received or receivable by the corporation
620
in connection with these eligible salaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
650
Total eligible salaries (amount 6E minus line 620) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
×
=
Note 5
Basic tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
line 650
655
660
Note 4: Government assistance as defined in subsection 7.5(1) of the Income Tax Act (Manitoba).
Note 5: The rate of basic credit that is specified on the Advance Certificate of Eligibility or the Certificate of Completion.
Part 7 – Frequent filming bonus tax credit
Note 6
Frequent filming bonus . . . . . . . . . . . . . . . . . . . . . . . . .
line 650 in Part 6
×
=
7A
705
Note 7
710
Percentage of labour eligible for frequent filming bonus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
730
Frequent filming bonus tax credit (amount 7A multiplied by line 710). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note 6: The rate of frequent filming bonus that is specified on the Advance Certificate of Eligibility or the Certificate of Completion.
Note 7: The percentage of eligible hours that is specified on the Advance Certificate of Eligibility or the Certificate of Completion. In any other situation,
enter 100.
Part 8 – Rural bonus tax credit
Rural bonus tax credit . . . . . . . . . . . . . . . . . . . . . . . .
×
=
line 650 in Part 6
Note 8
805
820
Note 8: The rate of rural bonus that is specified on the Advance Certificate of Eligibility or the Certificate of Completion.
Part 9 – Producer bonus tax credit
×
=
Note 9
line 650 in Part 6
845
Note 10
850
Producer bonus tax credit
. . . . . . . . . . . . . . . . .
Note 9:
If an eligible individual in Manitoba in the year in which the principal photography ends, or in the immediately preceding year, receives credit as a
producer, co-producer or executive producer of that film.
Note 10: The rate of producer bonus that is specified on the Advance Certificate of Eligibility or the Certificate of Completion.
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Part 10 – Cost of production tax credit
Note 11
Salary and wages
paid to eligible individuals and eligible non-resident individuals that are directly attributable
855
to the eligible Manitoba film . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Eligible service contract expenditures directly attributable to the eligible film paid to:
857
eligible individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
858
taxable Canadian corporations (solely owned by an eligible individual). . . . . . . . . . . . . . . .
859
other taxable Canadian corporations (for their eligible employees) . . . . . . . . . . . . . . . . . . .
860
partnerships (for their members who are eligible individuals or eligible employees). . . . . .
Subtotal (total of lines 857 to 860)
10A
Eligible service contract expenditures incurred by the parent corporation and transferred to its wholly-owned subsidiary
862
corporation under a reimbursement agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
864
Eligible tangible property expenditures directly attributable to the eligible film . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
865
Note 12
Eligible accommodation expenditures
directly attributable to the eligible film . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtotal (total of line 855, amount 10A, lines 862, 864 and 865)
10B
866
Government assistance included in amount 10B that the corporation has not repaid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
870
Cost of production for the tax year (amount 10B minus line 866) (if negative, enter 0) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
×
=
Cost of production tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . line 870
30 %
875
Note 11: Manitoba eligible salaries include amounts that are:
a) reasonable in the circumstances
b) directly attributable to the production of the eligible film or video
c) incurred in the tax year, or the previous tax year, and paid no later than 60 days after the end of the tax year
d) for the stages of production from the production commencement time to the end of the post-production stage
Manitoba eligible salaries do not include amounts that are incurred in the immediately preceding year and paid within 60 days after the end
of that preceding year.
Note 12: Accommodation expenditures for productions are eligible to a maximum of $300 per night per accommodation unit in Manitoba.
Part 11 – Manitoba film and video production tax credit
11A
Basic tax credit (line 660 in Part 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11B
Frequent filming bonus tax credit (line 730 in Part 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11C
Rural bonus tax credit (line 820 in Part 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11D
Producer bonus tax credit (line 850 in Part 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11E
Cost of salaries tax credit (total of amounts 11A to 11D) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11F
Cost of production tax credit (line 875 in Part 10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
900
Manitoba film and video production tax credit (amount 11E or amount 11F, whichever applies) . . . . . . . . . . . . . . . . . . . . . . . .
Enter line 900 on line 620 of Schedule 5, Tax Calculation Supplementary – Corporations. If you are filing more than one of these schedules,
add the amounts from line 900 of all the schedules, and enter the total on line 620 of Schedule 5.
See the privacy statement on your return.
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Part 12 – Claim checklist
To speed up the processing of your claim, make sure you include all the following documents with your T2 Corporation Income Tax Return for each film
for which you are claiming the Manitoba film and video production tax credit.
1. An Advance Certificate of Eligibility or a Certificate of Completion issued by Manitoba Film and Music . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. A completed copy of this form (you can complete one form for episodes in a series that are certified eligible productions) . . . . . . . . . . . . . . . . . . . . .
Note 13
3. A Report of Eligible Manitoba Labour Expenditures conforming to the format presented in Form B (1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. The final detailed cost report upon which the Report of Eligible Manitoba Labour Expenditures is based (indicating eligible Manitoba
labour expenditures) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. The financial structure for the film or video for the tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. If applicable, any documentation that indicates a change in control to the corporation or its corporate structure, which has occurred after
the date on which the Part A application has been submitted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7. If applicable, the actual list of deemed labour (Form D, Part B)
Note 13
signed by unions/guilds/Film Training Manitoba (it should also be on file
with Manitoba Film and Music) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8. If you are claiming eligible salaries for services provided by eligible non-resident individuals in Part 5 of this form, include a document showing
a separate breakdown of eligible salaries by tax years for:
(1) eligible individuals
(2) eligible non-resident individuals
in addition to the actual list of deemed labour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note 13
Important – Declarations of Manitoba Residency (Form A (1))
for all individuals for which amounts are claimed on this application must be
available upon request.
Note 13: For more information on forms provided by Manitoba Film and Music, visit their website at
mbfilmmusic.ca/en
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