NEWFOUNDLAND AND LABRADOR REGULATION 54/25

NLR 31/23
as amended

1. (1) Subparagraph 2(h)(i) of the All-Spend Film and Video Production Tax Credit Regulations is repealed and the following substituted:

(i) eligible salaries and labour expenditures,

(2) Paragraph 2(i) of the regulations is repealed and the following substituted:

(i) "eligible salaries and labour expenditures" means the total of the following amounts:

(i) an amount equal to the total of

(A) the salary or wages paid to all employees of an eligible corporation who are eligible individuals for work performed in the province in relation to an eligible production,

(B) amounts paid by an eligible corporation to an eligible individual who is not an employee of the eligible corporation, for work performed by the eligible individual, or an employee of the eligible individual, in the province in relation to the eligible production, and

(C) amounts paid by an eligible corporation to a taxable Canadian corporation for work performed by an eligible individual in the province in relation to an eligible production where

(I) all of the issued and outstanding shares of the capital stock of the corporation are owned by the eligible individual, and

(II) all of the activities of the corporation consist principally of the provision of services by the eligible individual, and

(ii) an amount equal to

(A) the non-resident salary and labour expenditures of an eligible corporation, or

(B) the amount referred to in subparagraph (i), where the amount referred to in clause (A) exceeds the amount referred to in subparagraph (i);

(3) Paragraph 2(j) of the regulations is repealed and the following substituted:

(j) "eligible service contract expenditure" means an amount paid by an eligible corporation to

(i) a taxable Canadian corporation with which the eligible corporation deals at arm's length for services performed in the province in respect of an eligible production by employees of the corporation at a time when they were eligible individuals, or

(ii) a partnership, each member of which is an eligible individual or a taxable Canadian corporation, for services performed in the province in respect of an eligible production by an eligible individual who is a member of the partnership or by employees of the partnership at a time when they were eligible individuals;

(4) Section 2 of the regulations is amended by adding immediately after paragraph (m) the following:

(m.1) "non-resident salary and labour expenditures" means an amount equal to the total of the following amounts:

(i) the salary or wages paid to all employees of an eligible corporation who are not eligible individuals for work performed in the province in relation to the eligible production,

(ii) amounts paid by an eligible corporation to an individual who is not an eligible individual, and is not an employee of the eligible corporation, for work performed by the individual, or an employee of the individual, in the province in relation to the eligible production, and

(iii) amounts paid by an eligible corporation to a corporation for work performed by an individual who is not an eligible individual, in the province in relation to the eligible production where

(A) all of the issued and outstanding shares of the capital stock of the corporation are owned by the individual, and

(B) all of the activities of the corporation consist principally of the provision of services by the individual;

2. Paragraph 4(2)(b) of the regulations is repealed and the following substituted:

(b) the estimated eligible salaries and labour expenditures;

Commencement

3. These regulations are considered to have come into force on April 7, 2022.