Revenu Québec Infos

The rate of the tax credit for the acquisition of shares issued by Fondaction is changing to 20% for all class A and class B shares acquired after May 31, 2015, and before June 1, 2016. This means that, if an employee has authorized you to withhold an amount from his or her remuneration for the purchase, after May 31, 2015, and before June 1, 2016, of class A or class B shares issued by Fondaction, you must adjust the calculation of that employee's source deductions of income tax.

For more information, refer to document PZ-972-V, Temporary Change in the Rate of the Tax Credit for the Acquisition of Shares Issued by Fondaction.

Eligible sector of activity added for the urban agglomeration of Îles-de-la-Madeleine

The Act respecting the sectoral parameters of certain fiscal measures will be amended so that activities in the recreation and tourism sector carried on by a corporation in the territory of the urban agglomeration of Îles-de-la-Madeleine may be recognized by Investissement Québec for the purposes of the refundable tax credit for Gaspésie and certain maritime regions of Québec.

This amendment will apply as of the 2015 calendar year.

Extension of the eligibility period under the tax credit and other changes

The eligibility period under the tax credit will be extended through December 31, 2020.

In addition, tax legislation will be amended to standardize the terms for calculating the amount of the refundable tax credit applicable to the various sectors of activity.

Tax legislation will also be amended so that, when determining the amount of the tax credit of a qualified corporation for a taxation year in which a calendar year ends, the aggregate of the amounts, each of which represents the salary or wages paid to an employee of the corporation for a pay period ended in the calendar year, may not exceed $83,333, calculated annually.

These amendments will apply as of the 2016 calendar year.

Reduction of the tax credit rates

Tax legislation will be amended to reduce, from 16% to 15%, the rate used to determine the amount of the refundable tax credit with respect to recognized activities in the wind-power sector, manufacturing sector, peat or slate processing sector and marine products processing sector.

Similarly, tax legislation will be amended to reduce, from 32% to 30%, the rate used to determine the amount of the tax credit with respect to recognized activities in the marine biotechnology sector, mariculture sector and recreation and tourism sector.

These amendments will apply as of the 2016 calendar year.

Other measures

A corporation that qualifies for the tax holiday for large investment projects will not be able to benefit, in respect of the salary or wages paid to an employee for a pay period, from the tax assistance relative to the holiday from employer contributions to the health services fund and the refundable tax credit for the creation of jobs in Gaspésie and certain maritime regions of Québec.

This change will apply as of the 2016 calendar year.

For more information, see pages A.58 to A.61 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

Further to changes in the QST system, large businesses will be able to claim input tax refunds (ITRs) in respect of property and services to which restrictions currently apply, at the rate of 25% in 2018, 50% in 2019, 75% in 2020 and 100% as of 2021.

As such, an amount of QST that becomes payable as of January 1 on the acquisition of property and services to which the restrictions apply may be included in the calculation of a large business's ITR, at the rate of 25%, 50%, 75% or 100%, depending on the year in question.

For more information, see pages A.72 and A.73 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

The rate of the contribution to the health services fund for employers in the service and construction sectors whose total payroll is equal to or less than $1 million will gradually decrease from 2.7% to 2.25% over a three-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.

Additionally, the Act respecting the Régie de l'assurance maladie du Québec will be amended to stipulate that, for the purposes of calculating, for a year subsequent to 2016, the temporary reduction of the health services fund contribution of a specified employer, other than an eligible specified employer, whose total payroll is $1 million or less, the rate of reduction will be equal to:

• 2.55% for 2017
• 2.40% for 2018
• 2.25% for 2019 and 2020

For more information, see pages A.46 to A.48 of the document entitled Additional Information 2015-2016 (PDF – 1.96 Mb), published by the Ministère des Finances.

Effective April 22, 2015, a new measure is changing subsidized childcare fees. Fees now include:

• a basic contribution of $7.30 per day, per child, that you will continue to pay your childcare service provider, and
• an additional contribution, adjusted to your family income, that you will pay Revenu Québec when you file your 2015 income tax return 

If you would like to know more, refer to the information pages.

Start thinking about your contribution now!

The following tips will help you prepare for paying the additional contribution when you file your 2015 income tax return.

1. Estimate the amount of your additional contribution using the Additional contribution for childcare expenses calculator.
2. If you like, you can have the amount added to your source deductions, by completing and filing one of the forms below with your employer:
   • Source Deductions Return (TP-1015.3-V)
   • Request to Have Additional Income Tax Withheld at Source (TP-1017-V)

If you are self-employed, you can increase the amount of your tax instalments.

Effective April 22, 2015, a new measure is changing subsidized childcare fees. Fees now include:

• a basic contribution of $7.30 per day, per child, that you will continue to pay your childcare service provider, and
• an additional contribution, adjusted to your family income, that you will pay Revenu Québec when you file your 2015 income tax return 

If you would like to know more, refer to the information pages.

Start thinking about your contribution now!

The following tips will help you prepare for paying the additional contribution when you file your 2015 income tax return.

1. Estimate the amount of your additional contribution using the Additional contribution for childcare expenses calculator.
2. If you like, you can have the amount added to your source deductions, by completing and filing one of the forms below with your employer:
   • Source Deductions Return (TP-1015.3-V)
   • Request to Have Additional Income Tax Withheld at Source (TP-1017-V)

If you are self-employed, you can increase the amount of your tax instalments.

Effective April 22, 2015, a new measure is changing subsidized childcare fees. Fees now include:

• a basic contribution of $7.30 per day, per child, that you will continue to pay your childcare service provider, and
• an additional contribution, adjusted to your family income, that you will pay Revenu Québec when you file your 2015 income tax return 

If you would like to know more, refer to the information pages.

Start thinking about your contribution now!

The following tips will help you prepare for paying the additional contribution when you file your 2015 income tax return.

1. Estimate the amount of your additional contribution using the additional subsidized childcare contribution calculator.
2. If you like, you can have the amount added to your source deductions, by completing and filing one of the forms below with your employer:
   • Source Deductions Return (TP-1015.3-V)
   • Request to Have Additional Income Tax Withheld at Source (TP-1017-V)

If you are self-employed, you can increase the amount of your tax instalments.

Corporate income tax rates will change through a reduction of the general tax rate, adjustment of the small business deduction (SBD) and a refocusing of the SBD on corporations in the primary and manufacturing sectors, and the extension of the additional deduction for small and medium-sized manufacturing businesses to small and medium-sized businesses (SMBs) in the primary and manufacturing sectors.

General tax rate

From 2017 to 2020, the general tax rate will be gradually reduced by 0.4 of a percentage point. The rate reductions will take effect on January 1 of each of the aforementioned years.

The general corporate tax rate will be reduced from the current rate of 11.9% to 11.8% in 2017, 11.7% in 2018, 11.6 % in 2019 and, finally, 11.5% in 2020.

SBD

Changes will be made to the SBD to adjust the rate of the deduction in view of the reduction of the general tax rate and to refocus the SBD on certain types of corporations.

The minimum income tax rate for small corporations will be maintained at all times at 8%. For all practical purposes, the current SBD rate of 3.9% will be gradually reduced by 0.4 of a percentage point in the same manner and within the same time frame as the general tax rate is to be reduced, thereby maintaining the minimum rate at 8%.

Furthermore, only some of the corporations that currently qualify for the SBD will be able to continue to claim it, in whole or in part. They include, for a taxation year,

• any corporation that employs more than three full-time employees in its business throughout the year or that would usually have used the services of more than three full-time employees had financial, administrative, maintenance, management or other similar services not been provided to the corporation in the year by a corporation associated with it; and 
• any corporation in the primary or manufacturing sector.

A corporation that, for a taxation year, meets the requirement by having the minimum number of such employees will be able to claim the SBD at the maximum rate for that taxation year.

However, a corporation in the primary or manufacturing sector that fails to meet the requirement by not having the minimum number of such employees will nonetheless be able to claim the SBD according to the proportion of its activities in the primary or manufacturing sector. Primary sector activities are those attributable to agriculture, forestry, fishing, hunting, mining, quarrying, and oil and gas extraction, whereas manufacturing sector activities are those that constitute manufacturing and processing activities.

A corporation in the primary or manufacturing sector whose proportion of activities in the primary sector or in the manufacturing and processing sector, for a particular taxation year, is 50% or more will be able to claim the SBD at the maximum rate for that taxation year.

If the proportion of such activities for a particular taxation year is between 50% and 25%, a corporation in the primary or manufacturing sector will be able to claim, for that taxation year, the SBD at a rate that is reduced linearly.

The changes relating to the refocusing of the SBD on corporations in the primary and manufacturing sectors will apply to taxation years beginning after December 31, 2016.

Additional deduction for SMBs

Changes will be made to the additional deduction for SMBs so that it becomes the additional deduction for SMBs in the primary and manufacturing sectors. The activities that are considered primary sector activities or manufacturing sector activities for purposes of the SBD are also considered such activities for purposes of the additional deduction for SMBs in the primary and manufacturing sectors.

A corporation in the primary or manufacturing sector whose proportion of activities in the primary sector or in the manufacturing and transformation sector, for a particular taxation year, is 50% or more will be able to claim the additional deduction for SMBs in the primary and manufacturing sectors at the rate of 4%.

If the proportion of such activities for a particular taxation year is between 50% and 25%, the rate of the additional deduction for SMBs in the primary and manufacturing sectors that a corporation may claim will be reduced linearly.

These changes will apply to taxation years beginning after December 31, 2016.

For more information, see pages A.37 to A.44 of the document entitled Additional Information 2015-2016 (PDF – 1.96 Mb) published by the Ministère des Finances.

The health contribution will be phased out beginning in 2017 and will be completely eliminated by 2019.

Low-income tax payers will no longer have to pay the health contribution as of 2017, since the income threshold at which it becomes payable will be set at more than $40,000.

The maximum amount payable for middle-income tax payers will decline to $125 in 2017 and $80 in 2018, and for high-income tax payers, it will decline to $800 in 2017 and $600 in 2018.

For more information, see page A.5 of the Ministère des Finances document entitled Additional Information 2015-2016 (PDF – 1.96 Mb).

As a rule, Revenu Québec must receive annual GST and QST returns and remittances no later than three months after the end of the reporting period.

The time limit changes, however, for individuals who are GST and QST registrants and

• who earn business income (other than property income) for income tax purposes;
• who have an annual reporting period; and 
• whose fiscal year ends on December 31.

Individuals in the situation described above have until June 15 of the following year to file their returns.

Note, however, that they must make remittances of any GST and QST payable no later than April 30.

As a rule, Revenu Québec must receive annual GST and QST returns and remittances no later than three months after the end of the reporting period.

The time limit changes, however, for individuals who are GST and QST registrants and

• who earn business income (other than property income) for income tax purposes;
• who have an annual reporting period; and 
• whose fiscal year ends on December 31.

Individuals in the situation described above have until June 15 of the following year to file their returns.

Note, however, that they must make remittances of any GST and QST payable no later than April 30.

As a rule, Revenu Québec must receive annual GST and QST returns and remittances no later than three months after the end of the reporting period.

The time limit changes, however, for individuals who are GST and QST registrants and

• who earn business income (other than property income) for income tax purposes;
• who have an annual reporting period; and 
• whose fiscal year ends on December 31.

Individuals in the situation described above have until June 15 of the following year to file their returns.

Note, however, that they must make remittances of any GST and QST payable no later than April 30.

On January 1, 2014, Revenu Québec's harmonized its tax treatment of any prize or award received by a lottery ticket vendor further to the distribution or sale of a winning ticket with that of the Revenue Canada Agency. The term “vendor” refers to both ticket retailers and distributors of tickets to retailers.

Any prizes or awards received or to be received after December 31, 2013, by a lottery ticket vendor further to the distribution or sale of a winning ticket must be included in the calculation of the vendor's business income for the purposes of the Taxation Act. Such prizes or awards constitute business income even if the amount or value of the prizes or awards is based on the volume of tickets sold or distributed (as in the case of an incentive bonus).

Prizes or awards received by vendors are therefore treated in the same way as income from the sale or distribution of lottery tickets.

However, prizes or awards received before January 1, 2014, by a lottery ticket vendor that sold or distributed a winning ticket are non-taxable lottery winnings.

For more information, see the interpretation bulletin Lotteries (IMP.293-1/R2) (PDF – 62.3 KB).

On January 1, 2014, Revenu Québec's harmonized its tax treatment of any prize or award received by a lottery ticket vendor further to the distribution or sale of a winning ticket with that of the Revenue Canada Agency. The term “vendor” refers to both ticket retailers and distributors of tickets to retailers.

Any prizes or awards received or to be received after December 31, 2013, by a lottery ticket vendor further to the distribution or sale of a winning ticket must be included in the calculation of the vendor's business income for the purposes of the Taxation Act. Such prizes or awards constitute business income even if the amount or value of the prizes or awards is based on the volume of tickets sold or distributed (as in the case of an incentive bonus).

Prizes or awards received by vendors are therefore treated in the same way as income from the sale or distribution of lottery tickets.

However, prizes or awards received before January 1, 2014, by a lottery ticket vendor that sold or distributed a winning ticket are non-taxable lottery winnings.

For more information, see the interpretation bulletin Lotteries (IMP.293-1/R2) (PDF – 62.3 KB).

On January 1, 2014, Revenu Québec's harmonized its tax treatment of any prize or award received by a lottery ticket vendor further to the distribution or sale of a winning ticket with that of the Revenue Canada Agency. The term “vendor” refers to both ticket retailers and distributors of tickets to retailers.

Any prizes or awards received or to be received after December 31, 2013, by a lottery ticket vendor further to the distribution or sale of a winning ticket must be included in the calculation of the vendor's business income for the purposes of the Taxation Act. Such prizes or awards constitute business income even if the amount or value of the prizes or awards is based on the volume of tickets sold or distributed (as in the case of an incentive bonus).

Prizes or awards received by vendors are therefore treated in the same way as income from the sale or distribution of lottery tickets.

However, prizes or awards received before January 1, 2014, by a lottery ticket vendor that sold or distributed a winning ticket are non-taxable lottery winnings.

For more information, see the interpretation bulletin Lotteries (IMP.293-1/R2) (PDF – 62.3 KB).

In the Budget Speech delivered on March 26, 2015, the Minister of Finance announced that an increase in the rate of the fuel tax reduction applicable to gasoline in Québec's border regions and the designated region would take effect at 12:01 a.m. on April 1, 2015.

Refund application

If you sell gasoline on which an amount equal to the fuel tax was collected in advance, you can apply for a refund of the amount that corresponds to the difference between the new rates and the rates in effect before April 1, 2015. 

To apply for the refund, you must inventory the gasoline you have in stock at 12:01 a.m. on April 1, 2015, and file form CAZ-14.1.R-V, Application for a Fuel Tax Refund in Respect of Gasoline in Stock at 12:01 a.m. on April 1, 2015 (Retail Dealers), making sure that we receive it by June 30, 2015. Applications received after that date will not be accepted. 

As a rule, a benefit respecting a motor vehicle made available to an employee for personal use is taxable. As an employer, you must include the value of taxable benefits in your employees' total income and enter the amounts of these benefits on their RL-1 slips (see courtesy translation RL-1-T).

Consult the following pages for information that will help you determine if a benefit respecting a motor vehicle you made available to your employee is taxable:

• Allowance for the Use of a Motor Vehicle
• Benefit Related to an Automobile Made Available to an Employee
• Benefit Related to the Personal Use of an Automobile Other than an Automobile Made Available to the Employee
• Benefit Related to an Employee's Personal Use of a Motor Vehicle Other Than an Automobile

As a rule, a benefit respecting a motor vehicle made available to an employee for personal use is taxable. As an employer, you must include the value of taxable benefits in your employees' total income and enter the amounts of these benefits on their RL-1 slips (see courtesy translation RL-1-T).

Consult the following pages for information that will help you determine if a benefit respecting a motor vehicle you made available to your employee is taxable:

• Allowance for the Use of a Motor Vehicle
• Benefit Related to an Automobile Made Available to an Employee
• Benefit Related to the Personal Use of an Automobile Other than an Automobile Made Available to the Employee
• Benefit Related to an Employee's Personal Use of a Motor Vehicle Other Than an Automobile

As a rule, a benefit respecting a motor vehicle made available to an employee for personal use is taxable. As an employer, you must include the value of taxable benefits in your employees' total income and enter the amounts of these benefits on their RL-1 slips (see courtesy translation RL-1-T).

Consult the following pages for information that will help you determine if a benefit respecting a motor vehicle you made available to your employee is taxable:

• Allowance for the Use of a Motor Vehicle
• Benefit Related to an Automobile Made Available to an Employee
• Benefit Related to the Personal Use of an Automobile Other than an Automobile Made Available to the Employee
• Benefit Related to an Employee's Personal Use of a Motor Vehicle Other Than an Automobile

The rate of the tax on lodging applicable in the Montréal tourism region is maintained at 3.5% for the period from February 1, 2015, to January 31, 2025.

For more information, consult Information Bulletin 2014-12 (PDF – 336 KB), published by the Ministère des Finances on December 19, 2014.