Revenu Québec Infos

Under Québec fiscal legislation, a taxpayer that is a corporation or an individual, including a trust, is required to pay income tax for a taxation year equal to 10% of:

• the taxpayer's income from logging operations for the year; and 
• the taxpayer's share in the income of a partnership carrying on logging operations of which the taxpayer is a member, for the partnership's fiscal period that ends in the year.

Previously, a taxpayer was not required to pay the logging tax for a taxation year if:

• the taxpayer's income from logging operations was $10,000 or less for the year; or
• the taxpayer's share in the income of a partnership carrying on logging operations of which the taxpayer is a member was $10,000 or less for the partnership's fiscal period that ends in the year.

However, on March 17, 2016, the logging tax exemption was raised from $10,000 to $65,000 for a taxation year of a taxpayer beginning after that date.

For more information, see page A.99 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Rate increases

The fixed rates used to calculate the maximum amount of the tax credits respecting the work premium for a person living alone and for a couple without children were increased by two percentage points, effective 2016. The rate increased from 7% to 9%, in the case of the work premium, and from 9% to 11%, in the case of the adapted work premium for households whose capacity for employment is severely limited.

For 2016, the maximum amount for the work premium increases from $564.48 to $725.76 for a person living alone and from $881.30 to $1,133.10 for a couple without children. The adapted work premium increases from $1,094.94 to $1,338.26 for a person living alone and from $1,641.96 to $2,006.84 for a couple without children.

Advance payment requests from recipients of last-resort financial assistance

Beginning on January 1, 2017, the Ministère du Travail, de l'Emploi et de la Solidarité sociale will receive requests for advance payments from recipients of last-resort financial assistance and determine the payment amounts.

For more information, see pages A.18 to A.21 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Rate increases

The fixed rates used to calculate the maximum amount of the tax credits respecting the work premium for a person living alone and for a couple without children were increased by two percentage points, effective 2016. The rate increased from 7% to 9%, in the case of the work premium, and from 9% to 11%, in the case of the adapted work premium for households whose capacity for employment is severely limited.

For 2016, the maximum amount for the work premium increases from $564.48 to $725.76 for a person living alone and from $881.30 to $1,133.10 for a couple without children. The adapted work premium increases from $1,094.94 to $1,338.26 for a person living alone and from $1,641.96 to $2,006.84 for a couple without children.

Advance payment requests from recipients of last-resort financial assistance

Beginning on January 1, 2017, the Ministère du Travail, de l'Emploi et de la Solidarité sociale will receive requests for advance payments from recipients of last-resort financial assistance and determine the payment amounts.

For more information, see pages A.18 to A.21 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Rate increases

The fixed rates used to calculate the maximum amount of the tax credits respecting the work premium for a person living alone and for a couple without children were increased by two percentage points, effective 2016. The rate increased from 7% to 9%, in the case of the work premium, and from 9% to 11%, in the case of the adapted work premium for households whose capacity for employment is severely limited.

For 2016, the maximum amount for the work premium increases from $564.48 to $725.76 for a person living alone and from $881.30 to $1,133.10 for a couple without children. The adapted work premium increases from $1,094.94 to $1,338.26 for a person living alone and from $1,641.96 to $2,006.84 for a couple without children.

Advance payment requests from recipients of last-resort financial assistance

Beginning on January 1, 2017, the Ministère du Travail, de l'Emploi et de la Solidarité sociale will receive requests for advance payments from recipients of last-resort financial assistance and determine the payment amounts.

For more information, see pages A.18 to A.21 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Rate increases

The fixed rates used to calculate the maximum amount of the tax credits respecting the work premium for a person living alone and for a couple without children were increased by two percentage points, effective 2016. The rate increased from 7% to 9%, in the case of the work premium, and from 9% to 11%, in the case of the adapted work premium for households whose capacity for employment is severely limited.

For 2016, the maximum amount for the work premium increases from $564.48 to $725.76 for a person living alone and from $881.30 to $1,133.10 for a couple without children. The adapted work premium increases from $1,094.94 to $1,338.26 for a person living alone and from $1,641.96 to $2,006.84 for a couple without children.

Advance payment requests from recipients of last-resort financial assistance

Beginning on January 1, 2017, the Ministère du Travail, de l'Emploi et de la Solidarité sociale will receive requests for advance payments from recipients of last-resort financial assistance and determine the payment amounts.

For more information, see pages A.18 to A.21 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.

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.