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Changes to the small business deduction (SBD) for a taxation year beginning after December 31, 2016, were announced in the Budget Speech of March 26, 2015. The changes specifically involved the refocusing of the SBD on corporations in the primary and manufacturing sectors, and the addition of qualification criteria. One qualification criterion will be replaced, as explained below.

Replacement of the criterion concerning the minimum number of employees by a criterion concerning the hours worked

The qualification criterion concerning the minimum number of employees will be replaced by a qualification criterion concerning the minimum number of hours worked.

A corporation will meet the qualification criterion concerning the minimum number of hours worked for a taxation year if, as applicable:

• during the taxation year, its employees worked at least 5,500 hours;
• during the previous taxation year, the number of hours worked by its employees and the employees of the corporations with which it is associated total at least 5,500 hours.

The following rules will apply in respect of this criterion:

• a maximum of 40 hours per week per worker may be considered;
• the hours worked must be paid at the time the SBD is claimed;
• the hours worked for a corporation by a person participating in its body of shareholders, either directly or indirectly, will also be counted, without regard to whether they are remunerated;
• the 5,500 hours that apply to the current year will be based on a complete taxation year and this threshold will be reduced proportionally in the case of a shorter fiscal period (this reduction of the threshold will not apply for the previous taxation year);
• to calculate the hours of the previous taxation year, the corporation must consider the taxation years ended during the calendar year preceding the year during which the corporation's taxation year ends;
• each corporation in a group of associated corporations must count the hours worked by its employees or a person participating in its body of shareholders—more specifically, the hours worked by a subcontractor for a corporation may not be counted by the corporation, but may be counted by the subcontractor.

Corporation in the primary or manufacturing sector

A corporation in the primary or manufacturing sector can claim an SBD at the highest SBD rate obtained, using either the qualification criterion concerning the minimum number of hours worked or the qualification criterion based on its level of activity in the primary or manufacturing sector.

Application date

Replacement of this qualification criterion will apply for a taxation year beginning after December 31, 2016.

For more information, see pages A.35 to A.37 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Changes to the small business deduction (SBD) for a taxation year beginning after December 31, 2016, were announced in the Budget Speech of March 26, 2015. The changes specifically involved the refocusing of the SBD on corporations in the primary and manufacturing sectors, and the addition of qualification criteria. One qualification criterion will be replaced, as explained below.

Replacement of the criterion concerning the minimum number of employees by a criterion concerning the hours worked

The qualification criterion concerning the minimum number of employees will be replaced by a qualification criterion concerning the minimum number of hours worked.

A corporation will meet the qualification criterion concerning the minimum number of hours worked for a taxation year if, as applicable:

• during the taxation year, its employees worked at least 5,500 hours;
• during the previous taxation year, the number of hours worked by its employees and the employees of the corporations with which it is associated total at least 5,500 hours.

The following rules will apply in respect of this criterion:

• a maximum of 40 hours per week per worker may be considered;
• the hours worked must be paid at the time the SBD is claimed;
• the hours worked for a corporation by a person participating in its body of shareholders, either directly or indirectly, will also be counted, without regard to whether they are remunerated;
• the 5,500 hours that apply to the current year will be based on a complete taxation year and this threshold will be reduced proportionally in the case of a shorter fiscal period (this reduction of the threshold will not apply for the previous taxation year);
• to calculate the hours of the previous taxation year, the corporation must consider the taxation years ended during the calendar year preceding the year during which the corporation's taxation year ends;
• each corporation in a group of associated corporations must count the hours worked by its employees or a person participating in its body of shareholders—more specifically, the hours worked by a subcontractor for a corporation may not be counted by the corporation, but may be counted by the subcontractor.

Corporation in the primary or manufacturing sector

A corporation in the primary or manufacturing sector can claim an SBD at the highest SBD rate obtained, using either the qualification criterion concerning the minimum number of hours worked or the qualification criterion based on its level of activity in the primary or manufacturing sector.

Application date

Replacement of this qualification criterion will apply for a taxation year beginning after December 31, 2016.

For more information, see pages A.35 to A.37 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Changes to the small business deduction (SBD) for a taxation year beginning after December 31, 2016, were announced in the Budget Speech of March 26, 2015. The changes specifically involved the refocusing of the SBD on corporations in the primary and manufacturing sectors, and the addition of qualification criteria. One qualification criterion will be replaced, as explained below.

Replacement of the criterion concerning the minimum number of employees by a criterion concerning the hours worked

The qualification criterion concerning the minimum number of employees will be replaced by a qualification criterion concerning the minimum number of hours worked.

A corporation will meet the qualification criterion concerning the minimum number of hours worked for a taxation year if, as applicable:

• during the taxation year, its employees worked at least 5,500 hours;
• during the previous taxation year, the number of hours worked by its employees and the employees of the corporations with which it is associated total at least 5,500 hours.

The following rules will apply in respect of this criterion:

• a maximum of 40 hours per week per worker may be considered;
• the hours worked must be paid at the time the SBD is claimed;
• the hours worked for a corporation by a person participating in its body of shareholders, either directly or indirectly, will also be counted, without regard to whether they are remunerated;
• the 5,500 hours that apply to the current year will be based on a complete taxation year and this threshold will be reduced proportionally in the case of a shorter fiscal period (this reduction of the threshold will not apply for the previous taxation year);
• to calculate the hours of the previous taxation year, the corporation must consider the taxation years ended during the calendar year preceding the year during which the corporation's taxation year ends;
• each corporation in a group of associated corporations must count the hours worked by its employees or a person participating in its body of shareholders—more specifically, the hours worked by a subcontractor for a corporation may not be counted by the corporation, but may be counted by the subcontractor.

Corporation in the primary or manufacturing sector

A corporation in the primary or manufacturing sector can claim an SBD at the highest SBD rate obtained, using either the qualification criterion concerning the minimum number of hours worked or the qualification criterion based on its level of activity in the primary or manufacturing sector.

Application date

Replacement of this qualification criterion will apply for a taxation year beginning after December 31, 2016.

For more information, see pages A.35 to A.37 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

As of March 27, 2015, the eligible amount of certain food donations made by a recognized farm producer can be increased by 50% if they are made to a registered charity that is either the Food Banks of Québec network or a Moisson member.

To take into account the fact that associate members of the Food Banks of Québec network can also solicit donations from local food suppliers, the increase in the eligible amount of donations of eligible agricultural products will cover any donation made after March 17, 2016, to a registered charity that is an associate member.

In addition, to ensure that the Food Banks of Québec network, a Moisson member or an associate member will receive quality food products in sufficient quantity throughout the year, the eligible amount of a food donation made, after March 17, 2016, by a corporation, partnership or individual carrying on a food processing business to a registered charity that is either the Food Banks of Québec, a Moisson member or an associate member may be increased by 50% for the purposes of calculating the deduction for donations and gifts or the non-refundable tax credit for donations and gifts, as applicable, if the donation consists of eligible food.

For more information, see pages A.73 to A.74 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

As of March 27, 2015, the eligible amount of certain food donations made by a recognized farm producer can be increased by 50% if they are made to a registered charity that is either the Food Banks of Québec network or a Moisson member.

To take into account the fact that associate members of the Food Banks of Québec network can also solicit donations from local food suppliers, the increase in the eligible amount of donations of eligible agricultural products will cover any donation made after March 17, 2016, to a registered charity that is an associate member.

In addition, to ensure that the Food Banks of Québec network, a Moisson member or an associate member will receive quality food products in sufficient quantity throughout the year, the eligible amount of a food donation made, after March 17, 2016, by a corporation, partnership or individual carrying on a food processing business to a registered charity that is either the Food Banks of Québec, a Moisson member or an associate member may be increased by 50% for the purposes of calculating the deduction for donations and gifts or the non-refundable tax credit for donations and gifts, as applicable, if the donation consists of eligible food.

For more information, see pages A.73 to A.74 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

As of March 27, 2015, the eligible amount of certain food donations made by a recognized farm producer can be increased by 50% if they are made to a registered charity that is either the Food Banks of Québec network or a Moisson member.

To take into account the fact that associate members of the Food Banks of Québec network can also solicit donations from local food suppliers, the increase in the eligible amount of donations of eligible agricultural products will cover any donation made after March 17, 2016, to a registered charity that is an associate member.

In addition, to ensure that the Food Banks of Québec network, a Moisson member or an associate member will receive quality food products in sufficient quantity throughout the year, the eligible amount of a food donation made, after March 17, 2016, by a corporation, partnership or individual carrying on a food processing business to a registered charity that is either the Food Banks of Québec, a Moisson member or an associate member may be increased by 50% for the purposes of calculating the deduction for donations and gifts or the non-refundable tax credit for donations and gifts, as applicable, if the donation consists of eligible food.

For more information, see pages A.73 to A.74 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

As of March 27, 2015, the eligible amount of certain food donations made by a recognized farm producer can be increased by 50% if they are made to a registered charity that is either the Food Banks of Québec network or a Moisson member.

To take into account the fact that associate members of the Food Banks of Québec network can also solicit donations from local food suppliers, the increase in the eligible amount of donations of eligible agricultural products will cover any donation made after March 17, 2016, to a registered charity that is an associate member.

In addition, to ensure that the Food Banks of Québec network, a Moisson member or an associate member will receive quality food products in sufficient quantity throughout the year, the eligible amount of a food donation made, after March 17, 2016, by a corporation, partnership or individual carrying on a food processing business to a registered charity that is either the Food Banks of Québec, a Moisson member or an associate member may be increased by 50% for the purposes of calculating the deduction for donations and gifts or the non-refundable tax credit for donations and gifts, as applicable, if the donation consists of eligible food.

For more information, see pages A.73 to A.74 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

As part of the 2015-2016 Budget Speech, the Minister of Finance announced that a new refundable tax credit, called the “tax shield,” would be implemented as of the 2016 taxation year.

The purpose of the tax shield is to offset, further to an increase in work income, a part of the loss of the socio-fiscal transfers designed to incentivize work, specifically the refundable tax credits respecting the work premium and the tax credit for childcare expenses.

To enhance the benefits of the tax shield, one of the parameters for calculating the tax credit will be adjusted upon the tax credit's implementation. As such, in 2016, the maximum increase in eligible work income relative to the previous year will be raised from $2,500 to $3,000 for each member of a household.

For more information, see pages A.21 to A.22 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

As part of the 2015-2016 Budget Speech, the Minister of Finance announced that a new refundable tax credit, called the “tax shield,” would be implemented as of the 2016 taxation year.

The purpose of the tax shield is to offset, further to an increase in work income, a part of the loss of the socio-fiscal transfers designed to incentivize work, specifically the refundable tax credits respecting the work premium and the tax credit for childcare expenses.

To enhance the benefits of the tax shield, one of the parameters for calculating the tax credit will be adjusted upon the tax credit's implementation. As such, in 2016, the maximum increase in eligible work income relative to the previous year will be raised from $2,500 to $3,000 for each member of a household.

For more information, see pages A.21 to A.22 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

As part of the 2015-2016 Budget Speech, the Minister of Finance announced that a new refundable tax credit, called the “tax shield,” would be implemented as of the 2016 taxation year.

The purpose of the tax shield is to offset, further to an increase in work income, a part of the loss of the socio-fiscal transfers designed to incentivize work, specifically the refundable tax credits respecting the work premium and the tax credit for childcare expenses.

To enhance the benefits of the tax shield, one of the parameters for calculating the tax credit will be adjusted upon the tax credit's implementation. As such, in 2016, the maximum increase in eligible work income relative to the previous year will be raised from $2,500 to $3,000 for each member of a household.

For more information, see pages A.21 to A.22 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

As part of the 2015-2016 Budget Speech, the Minister of Finance announced that a new refundable tax credit, called the “tax shield,” would be implemented as of the 2016 taxation year.

The purpose of the tax shield is to offset, further to an increase in work income, a part of the loss of the socio-fiscal transfers designed to incentivize work, specifically the refundable tax credits respecting the work premium and the tax credit for childcare expenses.

To enhance the benefits of the tax shield, one of the parameters for calculating the tax credit will be adjusted upon the tax credit's implementation. As such, in 2016, the maximum increase in eligible work income relative to the previous year will be raised from $2,500 to $3,000 for each member of a household.

For more information, see pages A.21 to A.22 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Tax regulations provide that, subject to the Minister's power to refuse or revoke a registration or modify a designation, any charitable organization, private foundation or public foundation that is registered as such under the Income Tax Act is deemed to be registered as such with the Minister, where the organization or foundation has provided to the Minister, within 30 days of its registration under federal tax legislation, a certified copy of the supporting documents filed with its application for registration and reasonable proof of registration.

Tax regulations will be amended to stipulate that, subject to the Minister's power to refuse, cancel, or revoke a registration or modify a designation, a charitable organization, a private foundation, a public foundation or a division (branch, section, parish, congregation or other division) of such an organization or foundation that is registered as a charitable organization, a private foundation or a public foundation under federal tax legislation will also be deemed registered as such with the Minister.

This amendment is effective January 1, 2016.

In addition, donations made before January 1, 2016, to an organization that, at the time of the donation, was a registered charity under federal tax legislation will be, for the purposes of the deduction for donations and gifts or the tax credit for donations and gifts provided for under the Québec income tax system, deemed to have been made to a registered charity, unless, at that time, the Minister had refused to register it as a charitable organization, private foundation or public foundation or had cancelled or revoked its registration.

For more information, see pages A.105 and A.106 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Tax regulations provide that, subject to the Minister's power to refuse or revoke a registration or modify a designation, any charitable organization, private foundation or public foundation that is registered as such under the Income Tax Act is deemed to be registered as such with the Minister, where the organization or foundation has provided to the Minister, within 30 days of its registration under federal tax legislation, a certified copy of the supporting documents filed with its application for registration and reasonable proof of registration.

Tax regulations will be amended to stipulate that, subject to the Minister's power to refuse, cancel, or revoke a registration or modify a designation, a charitable organization, a private foundation, a public foundation or a division (branch, section, parish, congregation or other division) of such an organization or foundation that is registered as a charitable organization, a private foundation or a public foundation under federal tax legislation will also be deemed registered as such with the Minister.

This amendment is effective January 1, 2016.

In addition, donations made before January 1, 2016, to an organization that, at the time of the donation, was a registered charity under federal tax legislation will be, for the purposes of the deduction for donations and gifts or the tax credit for donations and gifts provided for under the Québec income tax system, deemed to have been made to a registered charity, unless, at that time, the Minister had refused to register it as a charitable organization, private foundation or public foundation or had cancelled or revoked its registration.

For more information, see pages A.105 and A.106 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Tax regulations provide that, subject to the Minister's power to refuse or revoke a registration or modify a designation, any charitable organization, private foundation or public foundation that is registered as such under the Income Tax Act is deemed to be registered as such with the Minister, where the organization or foundation has provided to the Minister, within 30 days of its registration under federal tax legislation, a certified copy of the supporting documents filed with its application for registration and reasonable proof of registration.

Tax regulations will be amended to stipulate that, subject to the Minister's power to refuse, cancel, or revoke a registration or modify a designation, a charitable organization, a private foundation, a public foundation or a division (branch, section, parish, congregation or other division) of such an organization or foundation that is registered as a charitable organization, a private foundation or a public foundation under federal tax legislation will also be deemed registered as such with the Minister.

This amendment is effective January 1, 2016.

In addition, donations made before January 1, 2016, to an organization that, at the time of the donation, was a registered charity under federal tax legislation will be, for the purposes of the deduction for donations and gifts or the tax credit for donations and gifts provided for under the Québec income tax system, deemed to have been made to a registered charity, unless, at that time, the Minister had refused to register it as a charitable organization, private foundation or public foundation or had cancelled or revoked its registration.

For more information, see pages A.105 and A.106 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Tax regulations provide that, subject to the Minister's power to refuse or revoke a registration or modify a designation, any charitable organization, private foundation or public foundation that is registered as such under the Income Tax Act is deemed to be registered as such with the Minister, where the organization or foundation has provided to the Minister, within 30 days of its registration under federal tax legislation, a certified copy of the supporting documents filed with its application for registration and reasonable proof of registration.

Tax regulations will be amended to stipulate that, subject to the Minister's power to refuse, cancel, or revoke a registration or modify a designation, a charitable organization, a private foundation, a public foundation or a division (branch, section, parish, congregation or other division) of such an organization or foundation that is registered as a charitable organization, a private foundation or a public foundation under federal tax legislation will also be deemed registered as such with the Minister.

This amendment is effective January 1, 2016.

In addition, donations made before January 1, 2016, to an organization that, at the time of the donation, was a registered charity under federal tax legislation will be, for the purposes of the deduction for donations and gifts or the tax credit for donations and gifts provided for under the Québec income tax system, deemed to have been made to a registered charity, unless, at that time, the Minister had refused to register it as a charitable organization, private foundation or public foundation or had cancelled or revoked its registration.

For more information, see pages A.105 and A.106 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Income-based limits eliminated

Effective as of the 2016 taxation year, tax legislation will be amended to eliminate income-related limits for the purposes of calculating the tax credits for gifts. Thus:

• for the purposes of calculating the tax credit for charitable donations and other gifts, the total eligible amount of the individual's charitable donations for a given taxation year will correspond to the individual's total charitable donations for the year;
• for the purposes of calculating the tax credit for cultural patronage, the total eligible amount of the individual's patronage gifts for a given taxation year will correspond to the individual's total patronage gifts for the year;
• for the purposes of calculating the additional tax credit of 25% for a large cultural donation, the eligible amount of an individual's large cultural donation for a given taxation year must be determined without taking into account the individual's income for the year.

Partial increase in the rate of the tax credit for charitable donations and other gifts

Effective as of the 2017 taxation year, tax legislation will be amended to increase the amount of the tax credit for charitable donations and other gifts for individuals whose marginal tax rate is higher than 24%. The maximum amount that an individual will be able to claim for this tax credit for a given taxation year will therefore be equal to the total of the following amounts:

• 20% of the lesser of $200 or the individual's total eligible gifts for the year;
• 25.75% of the lesser of the following amounts:
  • the amount by which the individual's total eligible gifts for the year exceeds $200, or
  • the amount by which the individual's taxable income for the year exceeds the threshold for the year of the fourth tax bracket of the personal income tax table;
• 24% of the amount by which the individual's total eligible gifts for the year exceeds the aggregate of $200 and the amount of such gifts to which the rate of 25.75% applies.

For more information see pages A.22 to A.24 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

In calculating the taxable benefits related to the use of an automobile or the automobile expenses that can be deducted for income tax purposes, you must take into account certain limits and prescribed rates. The limits and rates for 2016 are listed below:

• For purposes of capital cost allowance (CCA), the ceiling on the capital cost of passenger vehicles is $30,000 (plus GST and QST) for vehicles purchased after 2015. 
• The limit on deductible leasing costs is $800 per month (plus GST and QST) for leases entered into after 2015. Under a separate restriction, deductible leasing costs are prorated where the value of the passenger vehicle exceeds the capital cost ceiling. 
• The limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes is 54 cents per kilometre for the first 5,000 kilometres and 48 cents for each additional kilometre. 
• The maximum allowable interest deduction for amounts borrowed to purchase a passenger vehicle is $300 per month for loans related to vehicles acquired after 2015. 
• The prescribed rate used to determine the taxable benefit respecting the portion of operating expenses which relates to an employee's personal use of an automobile provided by the employer is 26 cents per kilometre. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate is 23 cents per kilometre.

Income-based limits eliminated

Effective as of the 2016 taxation year, tax legislation will be amended to eliminate income-related limits for the purposes of calculating the tax credits for gifts. Thus:

• for the purposes of calculating the tax credit for charitable donations and other gifts, the total eligible amount of the individual's charitable donations for a given taxation year will correspond to the individual's total charitable donations for the year;
• for the purposes of calculating the tax credit for cultural patronage, the total eligible amount of the individual's patronage gifts for a given taxation year will correspond to the individual's total patronage gifts for the year;
• for the purposes of calculating the additional tax credit of 25% for a large cultural donation, the eligible amount of an individual's large cultural donation for a given taxation year must be determined without taking into account the individual's income for the year.

Partial increase in the rate of the tax credit for charitable donations and other gifts

Effective as of the 2017 taxation year, tax legislation will be amended to increase the amount of the tax credit for charitable donations and other gifts for individuals whose marginal tax rate is higher than 24%. The maximum amount that an individual will be able to claim for this tax credit for a given taxation year will therefore be equal to the total of the following amounts:

• 20% of the lesser of $200 or the individual's total eligible gifts for the year;
• 25.75% of the lesser of the following amounts:
  • the amount by which the individual's total eligible gifts for the year exceeds $200, or
  • the amount by which the individual's taxable income for the year exceeds the threshold for the year of the fourth tax bracket of the personal income tax table;
• 24% of the amount by which the individual's total eligible gifts for the year exceeds the aggregate of $200 and the amount of such gifts to which the rate of 25.75% applies.

For more information see pages A.22 to A.24 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

In calculating the taxable benefits related to the use of an automobile or the automobile expenses that can be deducted for income tax purposes, you must take into account certain limits and prescribed rates. The limits and rates for 2016 are listed below:

• For purposes of capital cost allowance (CCA), the ceiling on the capital cost of passenger vehicles is $30,000 (plus GST and QST) for vehicles purchased after 2015. 
• The limit on deductible leasing costs is $800 per month (plus GST and QST) for leases entered into after 2015. Under a separate restriction, deductible leasing costs are prorated where the value of the passenger vehicle exceeds the capital cost ceiling. 
• The limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes is 54 cents per kilometre for the first 5,000 kilometres and 48 cents for each additional kilometre. 
• The maximum allowable interest deduction for amounts borrowed to purchase a passenger vehicle is $300 per month for loans related to vehicles acquired after 2015. 
• The prescribed rate used to determine the taxable benefit respecting the portion of operating expenses which relates to an employee's personal use of an automobile provided by the employer is 26 cents per kilometre. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate is 23 cents per kilometre.

Income-based limits eliminated

Effective as of the 2016 taxation year, tax legislation will be amended to eliminate income-related limits for the purposes of calculating the tax credits for gifts. Thus:

• for the purposes of calculating the tax credit for charitable donations and other gifts, the total eligible amount of the individual's charitable donations for a given taxation year will correspond to the individual's total charitable donations for the year;
• for the purposes of calculating the tax credit for cultural patronage, the total eligible amount of the individual's patronage gifts for a given taxation year will correspond to the individual's total patronage gifts for the year;
• for the purposes of calculating the additional tax credit of 25% for a large cultural donation, the eligible amount of an individual's large cultural donation for a given taxation year must be determined without taking into account the individual's income for the year.

Partial increase in the rate of the tax credit for charitable donations and other gifts

Effective as of the 2017 taxation year, tax legislation will be amended to increase the amount of the tax credit for charitable donations and other gifts for individuals whose marginal tax rate is higher than 24%. The maximum amount that an individual will be able to claim for this tax credit for a given taxation year will therefore be equal to the total of the following amounts:

• 20% of the lesser of $200 or the individual's total eligible gifts for the year;
• 25.75% of the lesser of the following amounts:
  • the amount by which the individual's total eligible gifts for the year exceeds $200, or
  • the amount by which the individual's taxable income for the year exceeds the threshold for the year of the fourth tax bracket of the personal income tax table;
• 24% of the amount by which the individual's total eligible gifts for the year exceeds the aggregate of $200 and the amount of such gifts to which the rate of 25.75% applies.

For more information see pages A.22 to A.24 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.