Revenu Québec Infos

The health services fund contribution rate applicable to an employer whose total payroll for a given year is less than $5 million is being reduced each year from 2017 to 2021.

The health services fund contribution rate applicable to an employer whose total payroll for a given year is less than $5 million is being reduced each year from 2017 to 2021.

The health services fund contribution rate applicable to an employer whose total payroll for a given year is less than $5 million is being reduced each year from 2017 to 2021.

The health services fund contribution rate applicable to an employer whose total payroll for a given year is less than $5 million is being reduced each year from 2017 to 2021.

For 2018, if you are an employer in the primary and manufacturing sectors, and more than 50% of your total payroll is related to activities in these sectors (see the note below), your contribution rate will be determined as follows:

• If your total payroll is less than or equal to $1 million, your contribution rate will be 1.50%.
• If your total payroll is between $1 million and $5 million, your contribution rate (W) will be determined using the following formula: <math xmlns="http://www.w3.org/1998/Math/MathML"><mrow><mi>W</mi> <mtext>(%)</mtext> <mo>=</mo> <mn>0.81</mn> <mo>+</mo> <mfenced open="(" close=")" separators=" "><mn>0.69</mn> <mo>×</mo> <mi>S</mi></mfenced></mrow></math>where <math xmlns="http://www.w3.org/1998/Math/MathML"><mrow><mi>S</mi> <mo>=</mo> <mfrac><mrow><mtext>total payroll</mtext></mrow><mrow><mtext>$</mtext> <mn>1,000,000</mn></mrow></mfrac></mrow></math>
• If your total payroll is $5 million or more, your contribution rate will be 4.26%.

In other cases, your contribution rate will be determined as follows:

• If your total payroll is less than or equal to $1 million, your contribution rate will be 2.3%.
• If your total payroll is between $1 million and $5 million, your contribution rate (W) will be determined using the following formula: <math xmlns="http://www.w3.org/1998/Math/MathML"><mrow><mi>W</mi> <mtext>(%)</mtext> <mo>=</mo> <mn>1.81</mn> <mo>+</mo> <mfenced open="(" close=")" separators=" "><mn>0.49</mn> <mo>×</mo> <mi>S</mi></mfenced></mrow></math>where <math xmlns="http://www.w3.org/1998/Math/MathML"><mrow><mi>S</mi> <mo>=</mo> <mfrac><mrow><mtext>total payroll</mtext></mrow><mrow><mrow><mtext>$</mtext> <mn>1,000,000</mn></mrow></mrow></mfrac></mrow></math>
• If your total payroll is $5 million or more, your contribution rate will be 4.26%.

Note

The primary and manufacturing sector activities are classified under codes 11, 21 and 31–33 of the North American Industry Classification System (NAICS). For a description of the codes, visit the Statistics Canada website.

Temporary reduction of the contribution to the health services fund for the creation of specialized jobs

To take into account the reduced rate of the health services fund contribution for small and medium-sized businesses, the reduction rate in form LE-34.1.12-V, Reduction of the Contribution to the Health Services Fund: Creation of Specialized Jobs, will be adjusted each year from 2017 to 2020.

The health services fund contribution rate applicable to an employer whose total payroll for a given year is less than $5 million is being reduced each year from 2017 to 2021.

For 2018, if you are an employer in the primary and manufacturing sectors and 50% of your total payroll is related to activities in these sectors (see the note below), your contribution rate will be determined as follows:

• If your total payroll is less than or equal to $1 million, your contribution rate will be 1.50%.
• If your total payroll is between $1 million and $5 million, your contribution rate (W) will be determined using the following formula: W (%) = 0.81 + 0.69 × S where S = total payroll $ 1,000,000
• If your total payroll is $5 million or more, your contribution rate will be 4.26%.

In other cases, your contribution rate will be determined as follows:

• If your total payroll is less than or equal to $1 million, your contribution rate will be 2.3%.
• If your total payroll is between $1 million and $5 million, your contribution rate (W) will be determined using the following formula: W (%) = 1.81 + 0.49 × S where S = total payroll $ 1,000,000
• If your total payroll is $5 million or more, your contribution rate will be 4.26%.

Note

The primary and manufacturing sector activities are classified under codes 11, 21 and 31–33 of the North American Industry Classification System (NAICS). For a description of the codes, visit the Statistics Canada website.

Temporary reduction of the contribution to the health services fund for the creation of specialized jobs

To take into account the reduced rate of the health services fund contribution for small and medium-sized businesses, the reduction rate in form LE-34.1.12-V, Reduction of the Contribution to the Health Services Fund: Creation of Specialized Jobs, will be adjusted each year from 2017 to 2020.

Not all goods and services acquired by a large business under the QST system give entitlement to input tax refunds (ITRs).

Therefore, as a registrant, you must determine whether you constitute an SMB (small or medium-sized business) or a large business for each fiscal year.

You are generally considered to be a large business for a given fiscal year if your and any associated corporations' taxable supplies made in Canada in the fiscal year that precedes the given fiscal year exceed $10 million.

For more information, see the Large Businesses page or the interpretation bulletin entitled “Qualification as a small or medium-sized business or as a large business” (TVQ. 206.1-9).

Note

Restrictions on ITRs will be gradually eliminated as of January 1, 2018.

Not all goods and services acquired by a large business under the QST system give entitlement to input tax refunds (ITRs).

Therefore, as a registrant, you must determine whether you constitute an SMB (small or medium-sized business) or a large business for each fiscal year.

You are generally considered to be a large business for a given fiscal year if your and any associated corporations' taxable supplies made in Canada in the fiscal year that precedes the given fiscal year exceed $10 million.

For more information, see the Large Businesses page or the interpretation bulletin entitled “Qualification as a small or medium-sized business or as a large business” (TVQ. 206.1-9).

Note

Restrictions on ITRs will be gradually eliminated as of January 1, 2018.

Not all goods and services acquired by a large business under the QST system give entitlement to input tax refunds (ITRs).

Therefore, as a registrant, you must determine whether you constitute an SMB (small or medium-sized business) or a large business for each fiscal year.

You are generally considered to be a large business for a given fiscal year if your and any associated corporations' taxable supplies made in Canada in the fiscal year that precedes the given fiscal year exceed $10 million.

For more information, see the Large Businesses page or the interpretation bulletin entitled “Qualification as a small or medium-sized business or as a large business” (TVQ. 206.1-9).

Note

Restrictions on ITRs will be gradually eliminated as of January 1, 2018.

Not all goods and services acquired by a large business under the QST system give entitlement to input tax refunds (ITRs).

Therefore, as a registrant, you must determine whether you constitute an SMB (small or medium-sized business) or a large business for each fiscal year.

You are generally considered to be a large business for a given fiscal year if your and any associated corporations' taxable supplies made in Canada in the fiscal year that precedes the given fiscal year exceed $10 million.

For more information, see the Large Businesses page or the interpretation bulletin entitled “Qualification as a small or medium-sized business or as a large business” (TVQ. 206.1-9).

Note

Restrictions on ITRs will be gradually eliminated as of January 1, 2018.

Information concerning certain information entered on RL-1 slips filed for 2017.

Information concerning certain information entered on RL-1 slips filed for 2017.

Information concerning certain information entered on RL-1 slips filed for 2017.

Allowance for the use of a motor vehicle

For 2017, the per-kilometre rate for the use of a motor vehicle that you pay an employee and that we consider reasonable is $0.54 for the first 5,000 kilometres and $0.48 for each additional kilometre.

Operating-costs benefit related to an automobile made available to an employee

For 2017, the per-kilometre rate used to calculate the operating-costs benefit related to an automobile made available to an employee is $0.25. For employees engaged principally in selling or leasing automobiles, the per-kilometre rate is $0.22.

Reduction of the health services fund contribution rate for small and medium-sized businesses

The health services fund contribution rate for employers whose total payroll for a year is less than $5 million is being reduced over a period of five years starting in 2017.

For 2017, if you are an employer in the primary or manufacturing sector, and more than 50% of your total payroll is attributable to activities in either of these sectors (see the note below), your contribution rate is as follows:

• If your total payroll is $1 million or less, the contribution rate is 1.55%.
• If your total payroll is more than $1 million but less than $5 million, use the following formula to calculate the rate (W): <math xmlns="http://www.w3.org/1998/Math/MathML"><mrow><mi>W</mi> <mtext>(%)</mtext> <mo>=</mo> <mn>0.8725</mn> <mo>+</mo> <mfenced open="(" close=")" separators=" "><mn>0.6775</mn> <mo>×</mo> <mi>S</mi></mfenced></mrow></math>where <math xmlns="http://www.w3.org/1998/Math/MathML"><mrow><mi>S</mi> <mo>=</mo> <mfrac><mrow><mtext>your total payroll</mtext></mrow><mrow><mn>1,000,000</mn> <mtext>$</mtext></mrow></mfrac></mrow></math>
• If your total payroll is $5 million or more, the contribution rate is 4.26%.

In all other cases, your contribution rate is as follows:

• If your total payroll is $1 million or less, the contribution rate is 2.5%.
• If your total payroll is more than $1 million but less than $5 million, use the following formula to calculate the rate (W): <math xmlns="http://www.w3.org/1998/Math/MathML"><mrow><mi>W</mi> <mtext>(%)</mtext> <mo>=</mo> <mn>2.06</mn> <mo>+</mo> <mfenced open="(" close=")" separators=" "><mn>0.44</mn> <mo>×</mo> <mi>S</mi></mfenced></mrow></math>where <math xmlns="http://www.w3.org/1998/Math/MathML"><mrow><mi>S</mi> <mo>=</mo> <mfrac><mrow><mtext>your total payroll</mtext></mrow><mrow><mn>1,000,000</mn> <mtext>$</mtext></mrow></mfrac></mrow></math>
• If your total payroll is $5 million or more, the contribution rate is 4.26%.

Note

The primary and manufacturing sector activities are classified under codes 11, 21 and 31–33 of the North American Industry Classification System (NAICS). For a description of the codes, go to the Statistics Canada website.

Temporary reduction of the health services fund contribution for the creation of specialized jobs

The reduction rate used in form LE-34.1.12-V, Reduction of the Contribution to the Health Services Fund: Creation of Specialized Jobs, will be adjusted each year from 2017 to 2020 to take into account the reduction of the health services fund contribution rate for small and medium-sized businesses.

Contribution related to labour standards

Effective January 1, 2017, the rate that applies to remuneration subject to the contribution related to labour standards (formerly the “contribution to the financing of the CNT”) is 0.07%.

In addition, the portion of the remuneration that exceeds $72,500 for 2017 (previously $71,500) is not subject to the contribution related to labour standards.

Electronic distribution of RL slips to employees

For 2017 and subsequent years, you can distribute RL slips to your employees electronically without their prior written consent, provided you meet the criteria for distributing T4 slips to employees electronically. For more information, go to the Canada Revenue Agency website.

Electronic filing of RL slips with Revenu Québec

Effective January 1, 2017, you may have to pay a penalty if you file more than 50 RL-1 slips for a given calendar year and you fail to file those slips online or by the deadline. For more information about filing RL slips, see RL Slips and Summaries.

Additional tax relief for Canadian Forces personnel and police officers

For 2017 and subsequent years, Canadian Forces personnel and police officers who earned employment income while deployed on a mission abroad can claim a deduction on that income, regardless of the risk score associated with the mission. The deduction is limited to the maximum remuneration a Lieutenant-Colonel of the Canadian Forces can receive during the mission. For more information, see RL-1 Slip – Canadian Forces Personnel and Police Officers.

Allowance for the use of a motor vehicle

For 2017, the per-kilometre rate for the use of a motor vehicle that you pay an employee and that we consider reasonable is $0.54 for the first 5,000 kilometres and $0.48 for each additional kilometre.

Operating-costs benefit related to an automobile made available to an employee

For 2017, the per-kilometre rate used to calculate the operating-costs benefit related to an automobile made available to an employee is $0.25. For employees engaged principally in selling or leasing automobiles, the per-kilometre rate is $0.22.

Reduction of the health services fund contribution rate for small and medium-sized businesses

The health services fund contribution rate for employers whose total payroll for a year is less than $5 million is being reduced over a period of five years starting in 2017.

For 2017, if you are an employer in the primary or manufacturing sector, and more than 50% of your total payroll is attributable to activities in either of these sectors (see the note below), your contribution rate is as follows:

• If your total payroll is $1 million or less, the contribution rate is 1.55%.
• If your total payroll is more than $1 million but less than $5 million, use the following formula to calculate the rate (W): W (%) = 0.8725 + 0.6775 × S where S = your total payroll 1,000,000 $
• If your total payroll is $5 million or more, the contribution rate is 4.26%.

In all other cases, your contribution rate is as follows:

• If your total payroll is $1 million or less, the contribution rate is 2.5%.
• If your total payroll is more than $1 million but less than $5 million, use the following formula to calculate the rate (W): W (%) = 2.06 + 0.44 × S where S = your total payroll 1,000,000 $
• If your total payroll is $5 million or more, the contribution rate is 4.26%.

Note

The primary and manufacturing sector activities are classified under codes 11, 21 and 31–33 of the North American Industry Classification System (NAICS). For a description of the codes, go to the Statistics Canada website.

Temporary reduction of the health services fund contribution for the creation of specialized jobs

The reduction rate used in form LE-34.1.12-V, Reduction of the Contribution to the Health Services Fund: Creation of Specialized Jobs, will be adjusted each year from 2017 to 2020 to take into account the reduction of the health services fund contribution rate for small and medium-sized businesses.

Contribution related to labour standards

Effective January 1, 2017, the rate that applies to remuneration subject to the contribution related to labour standards (formerly the “contribution to the financing of the CNT”) is 0.07%.

In addition, the portion of the remuneration that exceeds $72,500 for 2017 (previously $71,500) is not subject to the contribution related to labour standards.

Electronic distribution of RL slips to employees

For 2017 and subsequent years, you can distribute RL slips to your employees electronically without their prior written consent, provided you meet the criteria for distributing T4 slips to employees electronically. For more information, go to the Canada Revenue Agency website.

Electronic filing of RL slips with Revenu Québec

Effective January 1, 2017, you may have to pay a penalty if you file more than 50 RL-1 slips for a given calendar year and you fail to file those slips online or by the deadline. For more information about filing RL slips, see RL Slips and Summaries. 

Additional tax relief for Canadian Forces personnel and police officers

For 2017 and subsequent years, Canadian Forces personnel and police officers who earned employment income while deployed on a mission abroad can claim a deduction on that income, regardless of the risk score associated with the mission. The deduction is limited to the maximum remuneration a Lieutenant-Colonel of the Canadian Forces can receive during the mission. For more information, see RL-1 Slip – Canadian Forces Personnel and Police Officers.

A mortgage loan supplied by a mortgage lender to a borrower is an exempt financial service. When a mortgage broker provides an “arranging for” service in relation to the supply of the mortgage loan, the mortgage broker is also making an exempt supply of a financial service.

When a mortgage broker is a franchisee and is required to pay to the franchisor a portion of the revenue earned through its exempt activity as part of its franchise fee, the tax status of the franchise fee must be determined based on the franchise agreement.

Generally speaking, the franchisee pays franchise fees for the right to operate a franchise, which includes the right to use the name of the franchisor as an advertising tool and any systems made available by the franchisor to facilitate the operation of the franchise. The supply of such a right is a supply of incorporeal movable property (“intangible personal property” under the federal system).

Supplies of incorporeal movable property are generally taxable. If the franchisor is a GST and QST registrant, the franchisor is required to charge and collect GST and QST on the franchise fee payable by the franchisee for the property. If the franchisee is required to include in its franchise fee a percentage of its revenue earned through making exempt supplies of financial services, it is still required to pay GST and QST on the entire franchise fee payable to the franchisor.

The agreement between a franchisor and a franchisee may provide that the franchise fee also includes a percentage of any incentive payments paid to the franchisee by a mortgage lender. For example, a mortgage broker franchisor may enter into an agreement with a mortgage lender which provides for incentive payments to be paid by the lender to the franchisee when certain sales volumes are reached. If a percentage of these incentive payments forms part of the franchise fee, the franchisee is still required to pay GST and QST on the entire franchise fee payable to the franchisor.

Furthermore, if the mortgage lender sends a franchisor the total amount of all the incentive payments earned by the franchisor's franchisees with instructions on how to divide the lump sum incentive payment between the franchisees and the franchisor retains an amount that corresponds to each franchisee's franchise fee, the portion of the incentive payment retained by the franchisor as part of the franchise fee is still subject to the GST and QST, which is payable by the franchisee.

For more information on financial services, refer to GST/HST Technical Information Bulletin B-105, Changes to the Definition of Financial Service.

A mortgage loan supplied by a mortgage lender to a borrower is an exempt financial service. When a mortgage broker provides an “arranging for” service in relation to the supply of the mortgage loan, the mortgage broker is also making an exempt supply of a financial service.

When a mortgage broker is a franchisee and is required to pay to the franchisor a portion of the revenue earned through its exempt activity as part of its franchise fee, the tax status of the franchise fee must be determined based on the franchise agreement.

Generally speaking, the franchisee pays franchise fees for the right to operate a franchise, which includes the right to use the name of the franchisor as an advertising tool and any systems made available by the franchisor to facilitate the operation of the franchise. The supply of such a right is a supply of incorporeal movable property (“intangible personal property” under the federal system).

Supplies of incorporeal movable property are generally taxable. If the franchisor is a GST and QST registrant, the franchisor is required to charge and collect GST and QST on the franchise fee payable by the franchisee for the property. If the franchisee is required to include in its franchise fee a percentage of its revenue earned through making exempt supplies of financial services, it is still required to pay GST and QST on the entire franchise fee payable to the franchisor.

The agreement between a franchisor and a franchisee may provide that the franchise fee also includes a percentage of any incentive payments paid to the franchisee by a mortgage lender. For example, a mortgage broker franchisor may enter into an agreement with a mortgage lender which provides for incentive payments to be paid by the lender to the franchisee when certain sales volumes are reached. If a percentage of these incentive payments forms part of the franchise fee, the franchisee is still required to pay GST and QST on the entire franchise fee payable to the franchisor.

Furthermore, if the mortgage lender sends a franchisor the total amount of all the incentive payments earned by the franchisor's franchisees with instructions on how to divide the lump sum incentive payment between the franchisees and the franchisor retains an amount that corresponds to each franchisee's franchise fee, the portion of the incentive payment retained by the franchisor as part of the franchise fee is still subject to the GST and QST, which is payable by the franchisee.

For more information on financial services, refer to GST/HST Technical Information Bulletin B-105, Changes to the Definition of Financial Service.

A mortgage loan supplied by a mortgage lender to a borrower is an exempt financial service. When a mortgage broker provides an “arranging for” service in relation to the supply of the mortgage loan, the mortgage broker is also making an exempt supply of a financial service.

When a mortgage broker is a franchisee and is required to pay to the franchisor a portion of the revenue earned through its exempt activity as part of its franchise fee, the tax status of the franchise fee must be determined based on the franchise agreement.

Generally speaking, the franchisee pays franchise fees for the right to operate a franchise, which includes the right to use the name of the franchisor as an advertising tool and any systems made available by the franchisor to facilitate the operation of the franchise. The supply of such a right is a supply of incorporeal movable property (“intangible personal property” under the federal system).

Supplies of incorporeal movable property are generally taxable. If the franchisor is a GST and QST registrant, the franchisor is required to charge and collect GST and QST on the franchise fee payable by the franchisee for the property. If the franchisee is required to include in its franchise fee a percentage of its revenue earned through making exempt supplies of financial services, it is still required to pay GST and QST on the entire franchise fee payable to the franchisor.

The agreement between a franchisor and a franchisee may provide that the franchise fee also includes a percentage of any incentive payments paid to the franchisee by a mortgage lender. For example, a mortgage broker franchisor may enter into an agreement with a mortgage lender which provides for incentive payments to be paid by the lender to the franchisee when certain sales volumes are reached. If a percentage of these incentive payments forms part of the franchise fee, the franchisee is still required to pay GST and QST on the entire franchise fee payable to the franchisor.

Furthermore, if the mortgage lender sends a franchisor the total amount of all the incentive payments earned by the franchisor's franchisees with instructions on how to divide the lump sum incentive payment between the franchisees and the franchisor retains an amount that corresponds to each franchisee's franchise fee, the portion of the incentive payment retained by the franchisor as part of the franchise fee is still subject to the GST and QST, which is payable by the franchisee.

For more information on financial services, refer to GST/HST Technical Information Bulletin B-105, Changes to the Definition of Financial Service.

An arts service organization can register as a recognized national arts service organization (RNASO) for the purposes of the Income Tax Act and the Taxation Act.

For GST and QST purposes, a RNASO is not considered a charity because it is not a registered charity or a registered Canadian amateur athletic association under the Income Tax Act or the Taxation Act. A RNASO is also not a public institution.

However, a RNASO can be considered a non-profit organization (NPO) for GST and QST purposes. An NPO is an entity (other than a succession, trust, charity, public institution, municipality or government) that meets the following conditions:

• It is organized and operated solely for non-profit purposes.
• No portion of its income is payable to its proprietors, members or shareholders, or made available to them for personal gain, unless the proprietor, member or shareholder is a club or an association whose primary purpose is to promote amateur athletics in Canada. 

For more information, see GST/HST Policy Statement P-215, Determination of whether an entity is a "non-profit organization" for purpose of the Excise Tax Act ("ETA").

For more information about how the GST and QST apply to NPOs, including the rebate that public service bodies can claim as a qualifying NPO, see document IN-229-V, The QST and the GST/HST: How They Apply to Non-Profit Organizations.

An arts service organization can register as a recognized national arts service organization (RNASO) for the purposes of the Income Tax Act and the Taxation Act.

For GST and QST purposes, a RNASO is not considered a charity because it is not a registered charity or a registered Canadian amateur athletic association under the Income Tax Act or the Taxation Act. A RNASO is also not a public institution.

However, a RNASO can be considered a non-profit organization (NPO) for GST and QST purposes. An NPO is an entity (other than a succession, trust, charity, public institution, municipality or government) that meets the following conditions:

• It is organized and operated solely for non-profit purposes.
• No portion of its income is payable to its proprietors, members or shareholders, or made available to them for personal gain, unless the proprietor, member or shareholder is a club or an association whose primary purpose is to promote amateur athletics in Canada. 

For more information, see GST/HST Policy Statement P-215, Determination of whether an entity is a "non-profit organization" for purpose of the Excise Tax Act ("ETA").

For more information about how the GST and QST apply to NPOs, including the rebate that public service bodies can claim as a qualifying NPO, see document IN-229-V, The QST and the GST/HST: How They Apply to Non-Profit Organizations.

An arts service organization can register as a recognized national arts service organization (RNASO) for the purposes of the Income Tax Act and the Taxation Act.

For GST and QST purposes, a RNASO is not considered a charity because it is not a registered charity or a registered Canadian amateur athletic association under the Income Tax Act or the Taxation Act. A RNASO is also not a public institution.

However, a RNASO can be considered a non-profit organization (NPO) for GST and QST purposes. An NPO is an entity (other than a succession, trust, charity, public institution, municipality or government) that meets the following conditions:

• It is organized and operated solely for non-profit purposes.
• No portion of its income is payable to its proprietors, members or shareholders, or made available to them for personal gain, unless the proprietor, member or shareholder is a club or an association whose primary purpose is to promote amateur athletics in Canada. 

For more information, see GST/HST Policy Statement P-215, Determination of whether an entity is a "non-profit organization" for purpose of the Excise Tax Act ("ETA").

For more information about how the GST and QST apply to NPOs, including the rebate that public service bodies can claim as a qualifying NPO, see document IN-229-V, The QST and the GST/HST: How They Apply to Non-Profit Organizations.