Qualifying Ontario labour expenditure
 33. (1) For the purposes of section 92 of the Act, a corporation’s qualifying Ontario labour expenditure for a taxation year in respect of an eligible production is the amount, if any, by which “A” exceeds “B” where, “A” is the sum of all amounts each of which is the corporation’s Ontario labour expenditure for the year or a previous taxation year in respect of the production, and “B” is the sum of, (a) all relevant assistance as defined in subsection 92 (13) of the Act in respect of the production, (i) that may reasonably be considered to be directly attributable to the amount of “A” for the year, (ii) that, when it was required to file its return under the Act for the year, the corporation or any other person or partnership had received, was entitled to receive or was reasonably expected to receive, to the extent the assistance had not been repaid pursuant to a legal obligation to do so, and (iii) that has not caused a reduction of the corporation’s Ontario labour expenditure for the year in respect of the production, (b) the sum of all amounts, each of which is the corporation’s qualifying Ontario labour expenditure in respect of the production for a previous taxation year before the end of which the principal photography of the production began, and (c) if the corporation is a parent, the sum of all amounts each of which is determined in respect of the production under paragraph 3 of subsection (2) as a consequence of an agreement referred to in that paragraph between the corporation and the subsidiary corporation it wholly owns.  O. Reg. 37/09, s. 33 (1); O. Reg. 70/10, s. 6 (1). (2) For the purposes of this section and subject to subsection (3), a qualifying corporation’s Ontario labour expenditure for a taxation year in respect of an eligible production is the sum of the following amounts in respect of the production to the extent that they are reasonable in the circumstances: 1. The salary and wages directly attributable to the production that are incurred by the corporation in the year or the previous taxation year, that relate to services rendered in Ontario for the stages of production of the production, from the final script stage to the end of the post-production stage, and that are paid by it in the year or within 60 days after the end of the year to the corporation’s employees who were Ontario-based individuals at the time the payments were made (other than amounts incurred in the previous year that were paid within 60 days after the end of the previous year); 2. That portion of the remuneration (other than salary or wages and other than remuneration that relates to services rendered in the previous taxation year that was paid within 60 days after the end of the previous year) that is directly attributable to the production, that relates to services rendered in Ontario in the year or the previous year to the corporation for the stages of producing the production, from the final script stage to the end of the post-production stage, and that is paid by it in the year or within 60 days after the end of the year to a person or partnership that carries on a business in Ontario through a permanent establishment and that is, i. an Ontario-based individual at the time the amount is paid and who is not an employee of the corporation, to the extent that the amount paid, A. is attributable to services personally rendered by the individual in Ontario in respect of the production, or B. is attributable to and does not exceed the salary or wages paid by the individual to the individual’s employees at a time when they were Ontario-based individuals for personally rendering services in Ontario in respect of the production, ii. another corporation that is a taxable Canadian corporation, to the extent that the amount paid is attributable to and does not exceed the salary or wages paid to the other corporation’s employees at a time when they were Ontario-based individuals for personally rendering services in Ontario in respect of the production, iii. another corporation that is a taxable Canadian corporation, all the issued and outstanding shares of the capital stock of which (except directors’ qualifying shares) belong to an Ontario-based individual and the activities of which consist principally of the provision of the individual’s services, to the extent that the amount paid is attributable to services rendered personally in Ontario by the individual in respect of the production, or iv. a partnership, to the extent that the amount paid, A. is attributable to services personally rendered in respect of the production by an Ontario-based individual who is a member of the partnership, or B. is attributable to and does not exceed the salary or wages paid by the partnership to its employees at a time when they were Ontario-based individuals for personally rendering services in Ontario in respect of the production; and 3. If the corporation has a parent that is a taxable Canadian corporation and if the corporation and the parent have agreed that paragraph (c) of the definition “Canadian labour expenditure” in subsection 125.5 (1) of the Federal Act applies in respect of the production, the reimbursement made by the corporation in the year, or within 60 days after the end of the year, of an expenditure that was incurred by the parent in a particular taxation year of the parent in respect of the production, if the amount would be included in the corporation’s Ontario labour expenditure in respect of the production for the particular taxation year under paragraph 1 or 2 if the corporation had had that particular taxation year and the expenditure had been incurred by the corporation for the same purpose as it was incurred by the parent and paid at the same time and to the same person or partnership as it was paid by the parent.  O. Reg. 37/09, s. 33 (2). (3) Subsection (2) does not apply to remuneration determined by reference to profits or revenues, to an amount to which section 37 of the Federal Act applies nor, for greater certainty, to an amount that is not a production cost (including an amount in respect of advertising, marketing, promotion, market research) or an amount related in any way to another film or video production.  O. Reg. 37/09, s. 33 (3). (4) The prescribed conditions for the purpose of the definition of “relevant assistance” in subsection 92 (13) of the Act are as follows: 1. The amount is assistance in respect of a production under subsection 125.5 of the Federal Act. 2. The amount is not assistance provided, or deemed by the Federal Act to be provided, under subsection 127 (5) or (6) or section 125.4 of the Federal Act. 3. The amount is not assistance provided under section 90, 92, 94 or 95 of the Act or section 43.7, 43.8, 43.10 or 43.12 of the Corporations Tax Act. 4. The amount is not assistance provided after June 30, 2009 and before April 1, 2010 by the Canadian Television Fund or after March 31, 2010 by the Canada Media Fund under the License Fee Program referred to in subsection 1106 (11) of the Federal regulations. 5. The amount is not a payment from the 2015 Ontario Production Services and Computer Animation and Special Effects Transitional Fund administered by the Ontario Media Development Corporation.  O. Reg. 70/10, s. 6 (2); O. Reg. 204/12, s. 1; O. Reg. 77/17, s. 4.