Revenu Québec Infos

A temporary refundable tax credit has been established to support the implementation and maintenance of major digital transformation projects in Québec.

The tax credit applies to eligible digitization contracts entered into after March 17, 2016, and before January 1, 2019, and is intended to encourage the implementation of projects that create in Québec at least 500 jobs that must be maintained for a period of seven years.

The tax credit is equal to 24% of the qualified wages paid by a corporation to an eligible employee under an eligible digitization contract over a two-year period, up to a maximum of $20,000 per employee each year.

Investissement Québec must issue a certificate in respect of the contract for it to be considered an eligible digitization contract.

For more information, see pages A.59 to A.67 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

A temporary refundable tax credit has been established to support the implementation and maintenance of major digital transformation projects in Québec.

The tax credit applies to eligible digitization contracts entered into after March 17, 2016, and before January 1, 2019, and is intended to encourage the implementation of projects that create in Québec at least 500 jobs that must be maintained for a period of seven years.

The tax credit is equal to 24% of the qualified wages paid by a corporation to an eligible employee under an eligible digitization contract over a two-year period, up to a maximum of $20,000 per employee each year.

Investissement Québec must issue a certificate in respect of the contract for it to be considered an eligible digitization contract.

For more information, see pages A.59 to A.67 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

A temporary refundable tax credit has been established to support the implementation and maintenance of major digital transformation projects in Québec.

The tax credit applies to eligible digitization contracts entered into after March 17, 2016, and before January 1, 2019, and is intended to encourage the implementation of projects that create in Québec at least 500 jobs that must be maintained for a period of seven years.

The tax credit is equal to 24% of the qualified wages paid by a corporation to an eligible employee under an eligible digitization contract over a two-year period, up to a maximum of $20,000 per employee each year.

Investissement Québec must issue a certificate in respect of the contract for it to be considered an eligible digitization contract.

For more information, see pages A.59 to A.67 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

The tax credit relating to information technologies in small and medium-sized businesses has been enhanced in two ways. First, the eligibility criteria for the tax credit have been broadened to include corporations doing business in the wholesale and retail sectors. Second, the threshold amount of paid-up capital of a qualified corporation at which the tax credit rate falls to zero has been increased to $50 million.

Eligibility of corporations doing business in the wholesale and retail sectors

Fiscal legislation has been amended so that a corporation can claim the tax credit relating to information technologies for a taxation year in which the proportion of its eligible activities (manufacturing and processing activities, primary sector activities, and activities in the wholesale and retail sectors) for purposes of the tax credit is greater than 50%.

The proportion of eligible activities of a qualified corporation for a taxation year for purposes of the tax credit is calculated as follows: the salaries or wages incurred by the corporation in respect of its employees whose duties consist of manufacturing or processing activities, primary sector activities, or activities in the wholesale or retail sectors, divided by the salaries or wages incurred by the corporation in respect of all its employees.

This change applies in respect of a taxation year of a corporation ending after March 17, 2016, but only to expenditures related to the supply of a qualified management software package incurred after March 17, 2016, and before January 1, 2020, under an information technology integration contract the negotiation of which began after March 17, 2016, and before January 1, 2020, and in respect of which Investissement Québec has issued a certificate.

For more information, see pages A.57 and A.58 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Increase in the threshold amount of paid-up capital

Fiscal legislation has been amended so that the 20% rate of the tax credit relating to information technologies that a qualified corporation can claim for a taxation year will not be reduced if the corporation's paid-up capital for that year is $35 million or less.

That rate is reduced linearly for a taxation year if the paid-up capital of a qualified corporation is more than $35 million; it falls to zero if the qualified corporation's paid-up capital totals $50 million or more. Thus, a qualified corporation that has $50 million or more in paid-up capital for a taxation year cannot benefit from the tax credit.

This change applies in respect of a taxation year of a corporation ending after March 17, 2016.

For more information, see page A.58 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

The tax credit relating to information technologies in small and medium-sized businesses has been enhanced in two ways. First, the eligibility criteria for the tax credit have been broadened to include corporations doing business in the wholesale and retail sectors. Second, the threshold amount of paid-up capital of a qualified corporation at which the tax credit rate falls to zero has been increased to $50 million.

Eligibility of corporations doing business in the wholesale and retail sectors

Fiscal legislation has been amended so that a corporation can claim the tax credit relating to information technologies for a taxation year in which the proportion of its eligible activities (manufacturing and processing activities, primary sector activities, and activities in the wholesale and retail sectors) for purposes of the tax credit is greater than 50%.

The proportion of eligible activities of a qualified corporation for a taxation year for purposes of the tax credit is calculated as follows: the salaries or wages incurred by the corporation in respect of its employees whose duties consist of manufacturing or processing activities, primary sector activities, or activities in the wholesale or retail sectors, divided by the salaries or wages incurred by the corporation in respect of all its employees.

This change applies in respect of a taxation year of a corporation ending after March 17, 2016, but only to expenditures related to the supply of a qualified management software package incurred after March 17, 2016, and before January 1, 2020, under an information technology integration contract the negotiation of which began after March 17, 2016, and before January 1, 2020, and in respect of which Investissement Québec has issued a certificate.

For more information, see pages A.57 and A.58 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Increase in the threshold amount of paid-up capital

Fiscal legislation has been amended so that the 20% rate of the tax credit relating to information technologies that a qualified corporation can claim for a taxation year will not be reduced if the corporation's paid-up capital for that year is $35 million or less.

That rate is reduced linearly for a taxation year if the paid-up capital of a qualified corporation is more than $35 million; it falls to zero if the qualified corporation's paid-up capital totals $50 million or more. Thus, a qualified corporation that has $50 million or more in paid-up capital for a taxation year cannot benefit from the tax credit.

This change applies in respect of a taxation year of a corporation ending after March 17, 2016.

For more information, see page A.58 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

The tax credit relating to information technologies in small and medium-sized businesses has been enhanced in two ways. First, the eligibility criteria for the tax credit have been broadened to include corporations doing business in the wholesale and retail sectors. Second, the threshold amount of paid-up capital of a qualified corporation at which the tax credit rate falls to zero has been increased to $50 million.

Eligibility of corporations doing business in the wholesale and retail sectors

Fiscal legislation has been amended so that a corporation can claim the tax credit relating to information technologies for a taxation year in which the proportion of its eligible activities (manufacturing and processing activities, primary sector activities, and activities in the wholesale and retail sectors) for purposes of the tax credit is greater than 50%.

The proportion of eligible activities of a qualified corporation for a taxation year for purposes of the tax credit is calculated as follows: the salaries or wages incurred by the corporation in respect of its employees whose duties consist of manufacturing or processing activities, primary sector activities, or activities in the wholesale or retail sectors, divided by the salaries or wages incurred by the corporation in respect of all its employees.

This change applies in respect of a taxation year of a corporation ending after March 17, 2016, but only to expenditures related to the supply of a qualified management software package incurred after March 17, 2016, and before January 1, 2020, under an information technology integration contract the negotiation of which began after March 17, 2016, and before January 1, 2020, and in respect of which Investissement Québec has issued a certificate.

For more information, see pages A.57 and A.58 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Increase in the threshold amount of paid-up capital

Fiscal legislation has been amended so that the 20% rate of the tax credit relating to information technologies that a qualified corporation can claim for a taxation year will not be reduced if the corporation's paid-up capital for that year is $35 million or less.

That rate is reduced linearly for a taxation year if the paid-up capital of a qualified corporation is more than $35 million; it falls to zero if the qualified corporation's paid-up capital totals $50 million or more. Thus, a qualified corporation that has $50 million or more in paid-up capital for a taxation year cannot benefit from the tax credit.

This change applies in respect of a taxation year of a corporation ending after March 17, 2016.

For more information, see page A.58 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

The tax credit relating to information technologies in small and medium-sized businesses has been enhanced in two ways. First, the eligibility criteria for the tax credit have been broadened to include corporations doing business in the wholesale and retail sectors. Second, the threshold amount of paid-up capital of a qualified corporation at which the tax credit rate falls to zero has been increased to $50 million.

Eligibility of corporations doing business in the wholesale and retail sectors

Fiscal legislation has been amended so that a corporation can claim the tax credit relating to information technologies for a taxation year in which the proportion of its eligible activities (manufacturing and processing activities, primary sector activities, and activities in the wholesale and retail sectors) for purposes of the tax credit is greater than 50%.

The proportion of eligible activities of a qualified corporation for a taxation year for purposes of the tax credit is calculated as follows: the salaries or wages incurred by the corporation in respect of its employees whose duties consist of manufacturing or processing activities, primary sector activities, or activities in the wholesale or retail sectors, divided by the salaries or wages incurred by the corporation in respect of all its employees.

This change applies in respect of a taxation year of a corporation ending after March 17, 2016, but only to expenditures related to the supply of a qualified management software package incurred after March 17, 2016, and before January 1, 2020, under an information technology integration contract the negotiation of which began after March 17, 2016, and before January 1, 2020, and in respect of which Investissement Québec has issued a certificate.

For more information, see pages A.57 and A.58 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Increase in the threshold amount of paid-up capital

Fiscal legislation has been amended so that the 20% rate of the tax credit relating to information technologies that a qualified corporation can claim for a taxation year will not be reduced if the corporation's paid-up capital for that year is $35 million or less.

That rate is reduced linearly for a taxation year if the paid-up capital of a qualified corporation is more than $35 million; it falls to zero if the qualified corporation's paid-up capital totals $50 million or more. Thus, a qualified corporation that has $50 million or more in paid-up capital for a taxation year cannot benefit from the tax credit.

This change applies in respect of a taxation year of a corporation ending after March 17, 2016.

For more information, see page A.58 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

The tax legislation will be amended so that an expenditure will qualify for the tax credit for technological adaptation services only if it concerns an eligible liaison and transfer service provided in Québec or it concerns participation in training and information activities dispensed in Québec in connection with an eligible liaison and transfer service.

This change will apply regarding qualified expenditures incurred by a qualified corporation after March 17, 2016, in connection with services offered after that day by an eligible college centre for the transfer of technology (CCTT) or by an eligible liaison and transfer centre (LTC) under a contract entered into after that day with the CCTT or LTC, as applicable.

For more information, see page A.59 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

The tax legislation will be amended so that an expenditure will qualify for the tax credit for technological adaptation services only if it concerns an eligible liaison and transfer service provided in Québec or it concerns participation in training and information activities dispensed in Québec in connection with an eligible liaison and transfer service.

This change will apply regarding qualified expenditures incurred by a qualified corporation after March 17, 2016, in connection with services offered after that day by an eligible college centre for the transfer of technology (CCTT) or by an eligible liaison and transfer centre (LTC) under a contract entered into after that day with the CCTT or LTC, as applicable.

For more information, see page A.59 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

The tax legislation will be amended so that an expenditure will qualify for the tax credit for technological adaptation services only if it concerns an eligible liaison and transfer service provided in Québec or it concerns participation in training and information activities dispensed in Québec in connection with an eligible liaison and transfer service.

This change will apply regarding qualified expenditures incurred by a qualified corporation after March 17, 2016, in connection with services offered after that day by an eligible college centre for the transfer of technology (CCTT) or by an eligible liaison and transfer centre (LTC) under a contract entered into after that day with the CCTT or LTC, as applicable.

For more information, see page A.59 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

The tax legislation will be amended so that an expenditure will qualify for the tax credit for technological adaptation services only if it concerns an eligible liaison and transfer service provided in Québec or it concerns participation in training and information activities dispensed in Québec in connection with an eligible liaison and transfer service.

This change will apply regarding qualified expenditures incurred by a qualified corporation after March 17, 2016, in connection with services offered after that day by an eligible college centre for the transfer of technology (CCTT) or by an eligible liaison and transfer centre (LTC) under a contract entered into after that day with the CCTT or LTC, as applicable.

For more information, see page A.59 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

A new plan to reduce health services fund contribution rates for all small and medium-sized businesses will take effect in 2017.

Small and medium-sized businesses in the primary and manufacturing sectors

For employers in the primary and manufacturing sectors whose total payroll is less than or equal to $1 million, the health services fund contribution rate will gradually decrease from 1.6% to 1.45% over a five-year period beginning in 2017. Employers whose total payroll is between $1 million and $5 million will also see a gradual reduction in their contribution rate.

Total payroll up to $1MCurrent rate1.6%Rate for 2017 1.55%Rate for 2018 to 20201.5%Rate as of 20211.45%

For more information, see pages A.29 to A.32 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Small and medium-sized businesses in the service and construction sectors

For employers in sectors other than the primary and manufacturing sectors whose total payroll is less than or equal to $1 million, the health services fund contribution rate will gradually decrease from 2.7% to 2% over a five-year period beginning in 2017. Employers whose total payroll is between $1 million and $5 million will also see a gradual reduction in their contribution rate.

Total payroll up to $1MCurrent rate2.70%Rate for 2017 2.50%Rate for 2018 2.30%Rate for 2019 2.15%Rate for 2020 2.05%Rate as of 20212.00%

For more information, see pages A.32 to A.34 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Temporary reduction of the health services fund contribution for the hiring of specialized workers

For any year after 2016, the temporary reduction rate for the health services fund contribution for an employer whose total payroll is more than $1M will be equal to:

• for employers in the primary or manufacturing sector:
  • 1.55% for 2017
  • 1.50% for 2018 to 2020
• for employers in other sectors:
  • 2.50% for 2017
  • 2.30% for 2018
  • 2.15% for 2019
  • 2.05% for 2020

For more information, see pages A.34 to A.35 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

A new plan to reduce health services fund contribution rates for all small and medium-sized businesses will take effect in 2017.

Small and medium-sized businesses in the primary and manufacturing sectors

For employers in the primary and manufacturing sectors whose total payroll is less than or equal to $1 million, the health services fund contribution rate will gradually decrease from 1.6% to 1.45% over a five-year period beginning in 2017. Employers whose total payroll is between $1 million and $5 million will also see a gradual reduction in their contribution rate.

Total payroll up to $1MCurrent rate1.6%Rate for 2017 1.55%Rate for 2018 to 20201.5%Rate as of 20211.45%

For more information, see pages A.29 to A.32 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Small and medium-sized businesses in the service and construction sectors

For employers in sectors other than the primary and manufacturing sectors whose total payroll is less than or equal to $1 million, the health services fund contribution rate will gradually decrease from 2.7% to 2% over a five-year period beginning in 2017. Employers whose total payroll is between $1 million and $5 million will also see a gradual reduction in their contribution rate.

Total payroll up to $1MCurrent rate2.70%Rate for 2017 2.50%Rate for 2018 2.30%Rate for 2019 2.15%Rate for 2020 2.05%Rate as of 20212.00%

For more information, see pages A.32 to A.34 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Temporary reduction of the health services fund contribution for the hiring of specialized workers

For any year after 2016, the temporary reduction rate for the health services fund contribution for an employer whose total payroll is more than $1M will be equal to:

• for employers in the primary or manufacturing sector:
  • 1.55% for 2017
  • 1.50% for 2018 to 2020
• for employers in other sectors:
  • 2.50% for 2017
  • 2.30% for 2018
  • 2.15% for 2019
  • 2.05% for 2020

For more information, see pages A.34 to A.35 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

A new plan to reduce health services fund contribution rates for all small and medium-sized businesses will take effect in 2017.

Small and medium-sized businesses in the primary and manufacturing sectors

For employers in the primary and manufacturing sectors whose total payroll is less than or equal to $1 million, the health services fund contribution rate will gradually decrease from 1.6% to 1.45% over a five-year period beginning in 2017. Employers whose total payroll is between $1 million and $5 million will also see a gradual reduction in their contribution rate.

Total payroll up to $1MCurrent rate1.6%Rate for 2017 1.55%Rate for 2018 to 20201.5%Rate as of 20211.45%

For more information, see pages A.29 to A.32 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Small and medium-sized businesses in the service and construction sectors

For employers in sectors other than the primary and manufacturing sectors whose total payroll is less than or equal to $1 million, the health services fund contribution rate will gradually decrease from 2.7% to 2% over a five-year period beginning in 2017. Employers whose total payroll is between $1 million and $5 million will also see a gradual reduction in their contribution rate.

Total payroll up to $1MCurrent rate2.70%Rate for 2017 2.50%Rate for 2018 2.30%Rate for 2019 2.15%Rate for 2020 2.05%Rate as of 20212.00%

For more information, see pages A.32 to A.34 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Temporary reduction of the health services fund contribution for the hiring of specialized workers

For any year after 2016, the temporary reduction rate for the health services fund contribution for an employer whose total payroll is more than $1M will be equal to:

• for employers in the primary or manufacturing sector:
  • 1.55% for 2017
  • 1.50% for 2018 to 2020
• for employers in other sectors:
  • 2.50% for 2017
  • 2.30% for 2018
  • 2.15% for 2019
  • 2.05% for 2020

For more information, see pages A.34 to A.35 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

A new plan to reduce health services fund contribution rates for all small and medium-sized businesses will take effect in 2017.

Small and medium-sized businesses in the primary and manufacturing sectors

For employers in the primary and manufacturing sectors whose total payroll is less than or equal to $1 million, the health services fund contribution rate will gradually decrease from 1.6% to 1.45% over a five-year period beginning in 2017. Employers whose total payroll is between $1 million and $5 million will also see a gradual reduction in their contribution rate.

Total payroll up to $1MCurrent rate1.6%Rate for 2017 1.55%Rate for 2018 to 20201.5%Rate as of 20211.45%

For more information, see pages A.29 to A.32 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Small and medium-sized businesses in the service and construction sectors

For employers in sectors other than the primary and manufacturing sectors whose total payroll is less than or equal to $1 million, the health services fund contribution rate will gradually decrease from 2.7% to 2% over a five-year period beginning in 2017. Employers whose total payroll is between $1 million and $5 million will also see a gradual reduction in their contribution rate.

Total payroll up to $1MCurrent rate2.70%Rate for 2017 2.50%Rate for 2018 2.30%Rate for 2019 2.15%Rate for 2020 2.05%Rate as of 20212.00%

For more information, see pages A.32 to A.34 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Temporary reduction of the health services fund contribution for the hiring of specialized workers

For any year after 2016, the temporary reduction rate for the health services fund contribution for an employer whose total payroll is more than $1M will be equal to:

• for employers in the primary or manufacturing sector:
  • 1.55% for 2017
  • 1.50% for 2018 to 2020
• for employers in other sectors:
  • 2.50% for 2017
  • 2.30% for 2018
  • 2.15% for 2019
  • 2.05% for 2020

For more information, see pages A.34 to A.35 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

An income-averaging mechanism will be introduced on a temporary basis. This mechanism will, for the purposes of income tax and the individual contribution to the health services fund, make it possible to average a portion of the income generated by non-retail sales of timber produced in a private forest for a period not exceeding seven years.

This mechanism will apply to an eligible individual or a qualified corporation which, at the end of a particular taxation year ending after March 17, 2016, but before January 1, 2021, is either a certified forest producer in respect of a private forest or a member of a qualified partnership that is a certified forest producer in respect of a private forest at the end of the partnership's fiscal period ending in the year.

Income-averaging mechanism for the purposes of calculating income tax

The tax legislation will be amended to stipulate that an eligible individual or a qualified corporation may deduct, in calculating taxable income for the year, an amount not exceeding 85% of the lesser of the following amounts: $200,000 or the amount determined according to the formula (A − B) + (C − D), that is, the income earned from certified commercial activities minus the losses resulting from these activities.

An individual or a corporation, as applicable, that has deducted, in calculating the taxable income for a particular taxation year, an amount from certified commercial activities in respect of a private forest will be required to include in calculating taxable income:

• for each of the six taxation years following the particular taxation year, an amount that cannot be less than 10% of the amount so deducted, up to the amount by which the amount so deducted exceeds the aggregate of the amounts each of which is an amount included in the calculation of the taxable income for a previous taxation year in respect of the amount so deducted;
• for the seventh year following the particular year, an amount equal to the amount by which the amount so deducted exceeds the aggregate of the amounts each of which is an amount included in the calculation of the taxable income for a previous taxation year in respect of the amount so deducted.

An individual will be considered an eligible individual for a particular taxation year if the individual resides in Québec at the end of that year. A qualified corporation for a particular taxation year is a Canadian-controlled private corporation with paid-up capital, taking into account the paid-up capital of any corporations with which it is associated in the taxation year, is at least $15 million for its previous taxation year.

An individual, corporation or partnership, as applicable, will be considered to be a certified forest producer at any time in respect of a private forest if the individual, corporation or partnership at that time holds a certificate as a certified forest producer issued under the Sustainable Forest Development Act in respect of that private forest.

The certified commercial activities in respect of a private forest mean the non-retail sales of timber produced in that private forest to a buyer having an establishment in Québec.

For more information, see pages A.44 to A.48 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Income-averaging mechanism for the purposes of calculating the individual contribution to the health services fund

An individual who so chooses may deduct, in calculating his or her total income for a particular year, an amount equal to the amount that he or she deducted for the purposes of the tax system in calculating his or her taxable income for the year under the income-averaging mechanism for forest producers.

However, an individual who makes such a choice for a particular year will be required to include, in calculating his or her total income for each of the seven years following the particular year, an amount equal to the amount that, for the purposes of the tax system, was included in calculating his or her taxable income for that year under the income-averaging mechanism for forest producers.

For more information, see pages A.48 and A.49 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

An income-averaging mechanism will be introduced on a temporary basis. This mechanism will, for the purposes of income tax and the individual contribution to the health services fund, make it possible to average a portion of the income generated by non-retail sales of timber produced in a private forest for a period not exceeding seven years.

This mechanism will apply to an eligible individual or a qualified corporation which, at the end of a particular taxation year ending after March 17, 2016, but before January 1, 2021, is either a certified forest producer in respect of a private forest or a member of a qualified partnership that is a certified forest producer in respect of a private forest at the end of the partnership's fiscal period ending in the year.

Income-averaging mechanism for the purposes of calculating income tax

The tax legislation will be amended to stipulate that an eligible individual or a qualified corporation may deduct, in calculating taxable income for the year, an amount not exceeding 85% of the lesser of the following amounts: $200,000 or the amount determined according to the formula (A − B) + (C − D), that is, the income earned from certified commercial activities minus the losses resulting from these activities.

An individual or a corporation, as applicable, that has deducted, in calculating the taxable income for a particular taxation year, an amount from certified commercial activities in respect of a private forest will be required to include in calculating taxable income:

• for each of the six taxation years following the particular taxation year, an amount that cannot be less than 10% of the amount so deducted, up to the amount by which the amount so deducted exceeds the aggregate of the amounts each of which is an amount included in the calculation of the taxable income for a previous taxation year in respect of the amount so deducted;
• for the seventh year following the particular year, an amount equal to the amount by which the amount so deducted exceeds the aggregate of the amounts each of which is an amount included in the calculation of the taxable income for a previous taxation year in respect of the amount so deducted.

An individual will be considered an eligible individual for a particular taxation year if the individual resides in Québec at the end of that year. A qualified corporation for a particular taxation year is a Canadian-controlled private corporation with paid-up capital, taking into account the paid-up capital of any corporations with which it is associated in the taxation year, is at least $15 million for its previous taxation year.

An individual, corporation or partnership, as applicable, will be considered to be a certified forest producer at any time in respect of a private forest if the individual, corporation or partnership at that time holds a certificate as a certified forest producer issued under the Sustainable Forest Development Act in respect of that private forest.

The certified commercial activities in respect of a private forest mean the non-retail sales of timber produced in that private forest to a buyer having an establishment in Québec.

For more information, see pages A.44 to A.48 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Income-averaging mechanism for the purposes of calculating the individual contribution to the health services fund

An individual who so chooses may deduct, in calculating his or her total income for a particular year, an amount equal to the amount that he or she deducted for the purposes of the tax system in calculating his or her taxable income for the year under the income-averaging mechanism for forest producers.

However, an individual who makes such a choice for a particular year will be required to include, in calculating his or her total income for each of the seven years following the particular year, an amount equal to the amount that, for the purposes of the tax system, was included in calculating his or her taxable income for that year under the income-averaging mechanism for forest producers.

For more information, see pages A.48 and A.49 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

An income-averaging mechanism will be introduced on a temporary basis. This mechanism will, for the purposes of income tax and the individual contribution to the health services fund, make it possible to average a portion of the income generated by non-retail sales of timber produced in a private forest for a period not exceeding seven years.

This mechanism will apply to an eligible individual or a qualified corporation which, at the end of a particular taxation year ending after March 17, 2016, but before January 1, 2021, is either a certified forest producer in respect of a private forest or a member of a qualified partnership that is a certified forest producer in respect of a private forest at the end of the partnership's fiscal period ending in the year.

Income-averaging mechanism for the purposes of calculating income tax

The tax legislation will be amended to stipulate that an eligible individual or a qualified corporation may deduct, in calculating taxable income for the year, an amount not exceeding 85% of the lesser of the following amounts: $200,000 or the amount determined according to the formula (A − B) + (C − D), that is, the income earned from certified commercial activities minus the losses resulting from these activities.

An individual or a corporation, as applicable, that has deducted, in calculating the taxable income for a particular taxation year, an amount from certified commercial activities in respect of a private forest will be required to include in calculating taxable income:

• for each of the six taxation years following the particular taxation year, an amount that cannot be less than 10% of the amount so deducted, up to the amount by which the amount so deducted exceeds the aggregate of the amounts each of which is an amount included in the calculation of the taxable income for a previous taxation year in respect of the amount so deducted;
• for the seventh year following the particular year, an amount equal to the amount by which the amount so deducted exceeds the aggregate of the amounts each of which is an amount included in the calculation of the taxable income for a previous taxation year in respect of the amount so deducted.

An individual will be considered an eligible individual for a particular taxation year if the individual resides in Québec at the end of that year. A qualified corporation for a particular taxation year is a Canadian-controlled private corporation with paid-up capital, taking into account the paid-up capital of any corporations with which it is associated in the taxation year, is at least $15 million for its previous taxation year.

An individual, corporation or partnership, as applicable, will be considered to be a certified forest producer at any time in respect of a private forest if the individual, corporation or partnership at that time holds a certificate as a certified forest producer issued under the Sustainable Forest Development Act in respect of that private forest.

The certified commercial activities in respect of a private forest mean the non-retail sales of timber produced in that private forest to a buyer having an establishment in Québec.

For more information, see pages A.44 to A.48 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Income-averaging mechanism for the purposes of calculating the individual contribution to the health services fund

An individual who so chooses may deduct, in calculating his or her total income for a particular year, an amount equal to the amount that he or she deducted for the purposes of the tax system in calculating his or her taxable income for the year under the income-averaging mechanism for forest producers.

However, an individual who makes such a choice for a particular year will be required to include, in calculating his or her total income for each of the seven years following the particular year, an amount equal to the amount that, for the purposes of the tax system, was included in calculating his or her taxable income for that year under the income-averaging mechanism for forest producers.

For more information, see pages A.48 and A.49 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

An income-averaging mechanism will be introduced on a temporary basis. This mechanism will, for the purposes of income tax and the individual contribution to the health services fund, make it possible to average a portion of the income generated by non-retail sales of timber produced in a private forest for a period not exceeding seven years.

This mechanism will apply to an eligible individual or a qualified corporation which, at the end of a particular taxation year ending after March 17, 2016, but before January 1, 2021, is either a certified forest producer in respect of a private forest or a member of a qualified partnership that is a certified forest producer in respect of a private forest at the end of the partnership's fiscal period ending in the year.

Income-averaging mechanism for the purposes of calculating income tax

The tax legislation will be amended to stipulate that an eligible individual or a qualified corporation may deduct, in calculating taxable income for the year, an amount not exceeding 85% of the lesser of the following amounts: $200,000 or the amount determined according to the formula (A − B) + (C − D), that is, the income earned from certified commercial activities minus the losses resulting from these activities.

An individual or a corporation, as applicable, that has deducted, in calculating the taxable income for a particular taxation year, an amount from certified commercial activities in respect of a private forest will be required to include in calculating taxable income:

• for each of the six taxation years following the particular taxation year, an amount that cannot be less than 10% of the amount so deducted, up to the amount by which the amount so deducted exceeds the aggregate of the amounts each of which is an amount included in the calculation of the taxable income for a previous taxation year in respect of the amount so deducted;
• for the seventh year following the particular year, an amount equal to the amount by which the amount so deducted exceeds the aggregate of the amounts each of which is an amount included in the calculation of the taxable income for a previous taxation year in respect of the amount so deducted.

An individual will be considered an eligible individual for a particular taxation year if the individual resides in Québec at the end of that year. A qualified corporation for a particular taxation year is a Canadian-controlled private corporation with paid-up capital, taking into account the paid-up capital of any corporations with which it is associated in the taxation year, is at least $15 million for its previous taxation year.

An individual, corporation or partnership, as applicable, will be considered to be a certified forest producer at any time in respect of a private forest if the individual, corporation or partnership at that time holds a certificate as a certified forest producer issued under the Sustainable Forest Development Act in respect of that private forest.

The certified commercial activities in respect of a private forest mean the non-retail sales of timber produced in that private forest to a buyer having an establishment in Québec.

For more information, see pages A.44 to A.48 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Income-averaging mechanism for the purposes of calculating the individual contribution to the health services fund

An individual who so chooses may deduct, in calculating his or her total income for a particular year, an amount equal to the amount that he or she deducted for the purposes of the tax system in calculating his or her taxable income for the year under the income-averaging mechanism for forest producers.

However, an individual who makes such a choice for a particular year will be required to include, in calculating his or her total income for each of the seven years following the particular year, an amount equal to the amount that, for the purposes of the tax system, was included in calculating his or her taxable income for that year under the income-averaging mechanism for forest producers.

For more information, see pages A.48 and A.49 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Effective as of the 2018 taxation year, the age of eligibility for the tax credit for experienced workers will be lowered to 62 years of age, the average retirement age of Quebecers. For this new category of workers, the maximum amount of eligible work income on which the tax credit will be calculated is $4,000.

For more information, see pages A.24 to A.27 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.