Entry Into Force of the India-Canada Audiovisual Coproduction Treaty

July 9th, The Canadian Government in Mumbai hosted a press conference on the entry into force of the India-Canada Audiovisual Coproduction Treaty.
Present were many representatives of the Indian Film Industry, from Ramesh Sippy representing FICCI and many other producers, lawyers, and directors.

“The Audiovisual treaty is the First, and Best of it’s kind” – Stewart Beck, Canadian High Commissioner

The audiovisual treaty opens the gateway to Canadian federal incentives for film and video productions, as well as the provincial tax incentives and other benefits reserved for Canadian productions.

The treaty also covers the digitization of footage, animation, and other digital forms of audiovisuals. This will open up more business opportunities in the area of digital media flowing between Canada and India.

Canada’s Citizenship and Immigration Minister Chris Alexander also announced the increased speed of visa processing for Indians coming to Canada. Now, Indians can expect to receive their short-term visas within 5 days of application.

A co-production is the project-based partnership between two or more parties. Canada has over 50 co-production treaties with countries around the world, and the treaty with India has been in and out of negotiations for the last 15 years.

The need for a co-production treaty came from the implementation of the CRTC (Canadian Content) regulations, that require Canadian films to fulfill a list of pre-requisites before qualifying for Canadian government funding and broadcasting opportunities.

These pre-requisites take form as a point-system, where more points are assigned to the project based on the number of Canadian citizens creatively involved. Only the key positions create points, and actors and producers also account for some points.

Essentially, a co-production allows another country’s citizen to count as a “point”, and benefit from the incentives that come along with it.

For a coproduction to be approved, one country must account for a minimum of 20% of the investment. Other parties are also allowed to join a treaty co-production, even if their country does not have a treaty with Canada or India. However, this investment cannot account more than 20% of the funding.

Ideally, the share of investment should be proportionate to the labor split between the countries, but allowances can be made if there are special requirements for the story that do not allow for an equal share.

To promote Co-Productions and creative familiarity with the Canadian Provincial incentives, as well as information on how to utilize the Coproduction Treaty, the Canadian Government will host several information sessions in Mumbai, Goa, and tentatively Chennai. Expect to hear from Canada at the IFFI Film Bazaar this November, and look out for these information sessions happening this October/November.

Some examples of the funding opportunities that are available on a Provincial Level for India-Canada Co-productions are from British Columbia:

Labour Tax Credits (Co-Productions and Foreign Productions included):

British Columbia Provincial Production Services Tax Credit:
36%+17.5%+6%+6% = 65.5% back on labor expenditures in British Columbia

Canadian Film & Television Services Tax Credit:
16% back on Canadian Labor Expenditures

Co-Production & Coventure:

Canadian Film or Video Production Tax Credit:
25% back on Labor Expenditures

 

For More Information on Official Co-Productions:
Telefilm Canada: Canadian Co-Ventures and Official Co-Production