Revenu Québec Infos

The Regulation respecting the determination of total payroll will be amended to provide that, as of 2015, only employers whose total payroll for a year exceeds $2 million will be required to participate in the development of workforce skills for that year.

For more information, see page A.118 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

The eligible amount for a donation of eligible agricultural products that is made after March 26, 2015, by a recognized farm producer to a registered charity that is either the Food Banks of Québec or a Moisson member can be increased by 50% for purposes of calculating the deduction for donations and gifts or the non-refundable tax credit for donations and gifts, as the case may be.

A recognized farm producer is an individual or a corporation that carries on a business registered as an agricultural operation with the Ministère de l'Agriculture, des Pêcheries et de l'Alimentation or that is a member of a partnership carrying on such a business at the end of its fiscal period.

The following products are considered eligible agricultural products:

• meat and meat by-products;
• eggs and dairy products;
• fish;
• fruit;
• vegetables;
• grain;
• legumes;
• fines herbes;
• honey;
• maple syrup;
• mushrooms;
• nuts; and
• any other product grown, raised or harvested by a registered agricultural operation, provided the product can be legally sold, distributed or offered for sale—at a place other than where it was produced—as a food or beverage intended for human consumption. 

However, a processed product is not considered an eligible agricultural product unless it has been processed only to the extent necessary to allow it to be legally sold, distributed or offered for sale—at a place other than where it was produced—as a food or beverage intended for human consumption.

For more information, see pages A.117 and A.118 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

The eligible amount for a donation of eligible agricultural products that is made after March 26, 2015, by a recognized farm producer to a registered charity that is either the Food Banks of Québec or a Moisson member can be increased by 50% for purposes of calculating the deduction for donations and gifts or the non-refundable tax credit for donations and gifts, as the case may be.

A recognized farm producer is an individual or a corporation that carries on a business registered as an agricultural operation with the Ministère de l'Agriculture, des Pêcheries et de l'Alimentation or that is a member of a partnership carrying on such a business at the end of its fiscal period.

The following products are considered eligible agricultural products:

• meat and meat by-products;
• eggs and dairy products;
• fish;
• fruit;
• vegetables;
• grain;
• legumes;
• fines herbes;
• honey;
• maple syrup;
• mushrooms;
• nuts; and
• any other product grown, raised or harvested by a registered agricultural operation, provided the product can be legally sold, distributed or offered for sale—at a place other than where it was produced—as a food or beverage intended for human consumption. 

However, a processed product is not considered an eligible agricultural product unless it has been processed only to the extent necessary to allow it to be legally sold, distributed or offered for sale—at a place other than where it was produced—as a food or beverage intended for human consumption.

For more information, see pages A.117 and A.118 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

The eligible amount for a donation of eligible agricultural products that is made after March 26, 2015, by a recognized farm producer to a registered charity that is either the Food Banks of Québec or a Moisson member can be increased by 50% for purposes of calculating the deduction for donations and gifts or the non-refundable tax credit for donations and gifts, as the case may be.

A recognized farm producer is an individual or a corporation that carries on a business registered as an agricultural operation with the Ministère de l'Agriculture, des Pêcheries et de l'Alimentation or that is a member of a partnership carrying on such a business at the end of its fiscal period.

The following products are considered eligible agricultural products:

• meat and meat by-products;
• eggs and dairy products;
• fish;
• fruit;
• vegetables;
• grain;
• legumes;
• fines herbes;
• honey;
• maple syrup;
• mushrooms;
• nuts; and
• any other product grown, raised or harvested by a registered agricultural operation, provided the product can be legally sold, distributed or offered for sale—at a place other than where it was produced—as a food or beverage intended for human consumption. 

However, a processed product is not considered an eligible agricultural product unless it has been processed only to the extent necessary to allow it to be legally sold, distributed or offered for sale—at a place other than where it was produced—as a food or beverage intended for human consumption.

For more information, see pages A.117 and A.118 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

The eligible amount for a donation of eligible agricultural products that is made after March 26, 2015, by a recognized farm producer to a registered charity that is either the Food Banks of Québec or a Moisson member can be increased by 50% for purposes of calculating the deduction for donations and gifts or the non-refundable tax credit for donations and gifts, as the case may be.

A recognized farm producer is an individual or a corporation that carries on a business registered as an agricultural operation with the Ministère de l'Agriculture, des Pêcheries et de l'Alimentation or that is a member of a partnership carrying on such a business at the end of its fiscal period.

The following products are considered eligible agricultural products:

• meat and meat by-products;
• eggs and dairy products;
• fish;
• fruit;
• vegetables;
• grain;
• legumes;
• fines herbes;
• honey;
• maple syrup;
• mushrooms;
• nuts; and
• any other product grown, raised or harvested by a registered agricultural operation, provided the product can be legally sold, distributed or offered for sale—at a place other than where it was produced—as a food or beverage intended for human consumption. 

However, a processed product is not considered an eligible agricultural product unless it has been processed only to the extent necessary to allow it to be legally sold, distributed or offered for sale—at a place other than where it was produced—as a food or beverage intended for human consumption.

For more information, see pages A.117 and A.118 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

Major changes are to be made to the tax credit for salaries and wages (IFC) (hereinafter the "refundable tax credit") (referred to in the Budget Speech as the refundable tax credit for international financial centres). It will be replaced almost entirely by a non-refundable tax credit, except with respect to back-office activities. The refundable tax credit may still be claimed in respect of such activities, which, subject to certain conditions, may be considered qualified international financial transactions (QIFTs).

Continuation of the refundable tax credit with respect to back-office activities

The Act respecting sectoral parameters of certain fiscal measures will be amended so that an eligible corporation that operates a business, all of whose activities are back-office activities that qualify as QIFTs, may obtain a qualification certificate that recognizes the business as an international financial centre (IFC) and the annual certificate that is required for purposes of the refundable tax credit.

These amendments relating to corporations will apply to taxation years that begin after March 26, 2015.

Replacement of the refundable tax credit with a non-refundable tax credit in respect of activities other than back-office activities

Tax legislation will be amended so that an eligible corporation that operates a business recognized as an IFC by the Minister of Finance may deduct from its income tax otherwise payable for a taxation year an amount representing 24% of the qualified salaries and wages it incurred for the year in respect of its eligible employees. This new non-refundable tax credit cannot be greater than $16,000 per employee, calculated on an annual basis.

All the conditions in tax legislation that apply to the refundable tax credit will apply to the new non-refundable tax credit, with the necessary modifications.

Furthermore, an eligible corporation will be able to carry back over the three preceding taxation years or carry forward over the following 20 taxation years the portion of the tax credit that did not reduce its income tax payable for the taxation year to which the tax credit relates. However, no carry-over is possible in respect of either a taxation year for which the corporation does not have a valid qualification certificate for purposes of the non-refundable tax credit or a taxation year ending before March 27, 2015.

These amendments relating to eligible corporations will apply to taxation years that begin after March 26, 2015.

For more information, see pages A.95 to A.100 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

Major changes are to be made to the tax credit for salaries and wages (IFC) (hereinafter the "refundable tax credit") (referred to in the Budget Speech as the refundable tax credit for international financial centres). It will be replaced almost entirely by a non-refundable tax credit, except with respect to back-office activities. The refundable tax credit may still be claimed in respect of such activities, which, subject to certain conditions, may be considered qualified international financial transactions (QIFTs).

Continuation of the refundable tax credit with respect to back-office activities

The Act respecting sectoral parameters of certain fiscal measures will be amended so that an eligible corporation that operates a business, all of whose activities are back-office activities that qualify as QIFTs, may obtain a qualification certificate that recognizes the business as an international financial centre (IFC) and the annual certificate that is required for purposes of the refundable tax credit.

These amendments relating to corporations will apply to taxation years that begin after March 26, 2015.

Replacement of the refundable tax credit with a non-refundable tax credit in respect of activities other than back-office activities

Tax legislation will be amended so that an eligible corporation that operates a business recognized as an IFC by the Minister of Finance may deduct from its income tax otherwise payable for a taxation year an amount representing 24% of the qualified salaries and wages it incurred for the year in respect of its eligible employees. This new non-refundable tax credit cannot be greater than $16,000 per employee, calculated on an annual basis.

All the conditions in tax legislation that apply to the refundable tax credit will apply to the new non-refundable tax credit, with the necessary modifications.

Furthermore, an eligible corporation will be able to carry back over the three preceding taxation years or carry forward over the following 20 taxation years the portion of the tax credit that did not reduce its income tax payable for the taxation year to which the tax credit relates. However, no carry-over is possible in respect of either a taxation year for which the corporation does not have a valid qualification certificate for purposes of the non-refundable tax credit or a taxation year ending before March 27, 2015.

These amendments relating to eligible corporations will apply to taxation years that begin after March 26, 2015.

For more information, see pages A.95 to A.100 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

Major changes are to be made to the tax credit for salaries and wages (IFC) (hereinafter the "refundable tax credit") (referred to in the Budget Speech as the refundable tax credit for international financial centres). It will be replaced almost entirely by a non-refundable tax credit, except with respect to back-office activities. The refundable tax credit may still be claimed in respect of such activities, which, subject to certain conditions, may be considered qualified international financial transactions (QIFTs).

Continuation of the refundable tax credit with respect to back-office activities

The Act respecting sectoral parameters of certain fiscal measures will be amended so that an eligible corporation that operates a business, all of whose activities are back-office activities that qualify as QIFTs, may obtain a qualification certificate that recognizes the business as an international financial centre (IFC) and the annual certificate that is required for purposes of the refundable tax credit.

These amendments relating to corporations will apply to taxation years that begin after March 26, 2015.

Replacement of the refundable tax credit with a non-refundable tax credit in respect of activities other than back-office activities

Tax legislation will be amended so that an eligible corporation that operates a business recognized as an IFC by the Minister of Finance may deduct from its income tax otherwise payable for a taxation year an amount representing 24% of the qualified salaries and wages it incurred for the year in respect of its eligible employees. This new non-refundable tax credit cannot be greater than $16,000 per employee, calculated on an annual basis.

All the conditions in tax legislation that apply to the refundable tax credit will apply to the new non-refundable tax credit, with the necessary modifications.

Furthermore, an eligible corporation will be able to carry back over the three preceding taxation years or carry forward over the following 20 taxation years the portion of the tax credit that did not reduce its income tax payable for the taxation year to which the tax credit relates. However, no carry-over is possible in respect of either a taxation year for which the corporation does not have a valid qualification certificate for purposes of the non-refundable tax credit or a taxation year ending before March 27, 2015.

These amendments relating to eligible corporations will apply to taxation years that begin after March 26, 2015.

For more information, see pages A.95 to A.100 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

Major changes are to be made to the tax credit for salaries and wages (IFC) (hereinafter the "refundable tax credit") (referred to in the Budget Speech as the refundable tax credit for international financial centres). It will be replaced almost entirely by a non-refundable tax credit, except with respect to back-office activities. The refundable tax credit may still be claimed in respect of such activities, which, subject to certain conditions, may be considered qualified international financial transactions (QIFTs).

Continuation of the refundable tax credit with respect to back-office activities

The Act respecting sectoral parameters of certain fiscal measures will be amended so that an eligible corporation that operates a business, all of whose activities are back-office activities that qualify as QIFTs, may obtain a qualification certificate that recognizes the business as an international financial centre (IFC) and the annual certificate that is required for purposes of the refundable tax credit.

These amendments relating to corporations will apply to taxation years that begin after March 26, 2015.

Replacement of the refundable tax credit with a non-refundable tax credit in respect of activities other than back-office activities

Tax legislation will be amended so that an eligible corporation that operates a business recognized as an IFC by the Minister of Finance may deduct from its income tax otherwise payable for a taxation year an amount representing 24% of the qualified salaries and wages it incurred for the year in respect of its eligible employees. This new non-refundable tax credit cannot be greater than $16,000 per employee, calculated on an annual basis.

All the conditions in tax legislation that apply to the refundable tax credit will apply to the new non-refundable tax credit, with the necessary modifications.

Furthermore, an eligible corporation will be able to carry back over the three preceding taxation years or carry forward over the following 20 taxation years the portion of the tax credit that did not reduce its income tax payable for the taxation year to which the tax credit relates. However, no carry-over is possible in respect of either a taxation year for which the corporation does not have a valid qualification certificate for purposes of the non-refundable tax credit or a taxation year ending before March 27, 2015.

These amendments relating to eligible corporations will apply to taxation years that begin after March 26, 2015.

For more information, see pages A.95 to A.100 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

Tax legislation will be amended to restore the former parameters of the tax credit for the production of performances. However, a new, lower cap will be applicable to a qualified performance that is a comedy show. Consequently,

• the tax credit rate applicable to a qualified labour expenditure will be 35% (instead of 28%);
• the maximum tax credit in respect of a qualified performance will be 
  • $1.25 million (instead of $1 million), where the qualified performance is a musical comedy,
  • $350,000, where the qualified performance is a comedy show,
  • $750,000 (instead of $600,000) otherwise.

The increase in the tax credit rate will apply to an eligibility period of a qualified performance beginning after March 26, 2015, for which an application for an advance ruling or, where no such application was previously filed in respect of the eligibility period, an application for a certificate is filed with the Société de développement des entreprises culturelles (SODEC) after that day.

The increase in the cap on the tax credit will apply to a qualified performance, other than a qualified performance that is a comedy show, where one of its eligibility periods is not completed on March 26, 2015.

The decrease in the cap on the tax credit will apply to a qualified performance that is a comedy show for which an application for an advance ruling or, where no such application was previously filed in respect of the initial eligibility period an application for a certificate is filed with SODEC:

• after March 26, 2015, where SODEC considers that work on the production of the performance was not sufficiently advanced on March 26, 2015;
• after June 30, 2015, otherwise.

For more information, see pages A.91 and A.92 of the document Additional Information 2015-2016 (PDF – 1.96 MB) published by the Ministère des Finances.

Tax legislation will be amended to restore the former parameters of the tax credit for the production of performances. However, a new, lower cap will be applicable to a qualified performance that is a comedy show. Consequently,

• the tax credit rate applicable to a qualified labour expenditure will be 35% (instead of 28%);
• the maximum tax credit in respect of a qualified performance will be 
  • $1.25 million (instead of $1 million), where the qualified performance is a musical comedy,
  • $350,000, where the qualified performance is a comedy show,
  • $750,000 (instead of $600,000) otherwise.

The increase in the tax credit rate will apply to an eligibility period of a qualified performance beginning after March 26, 2015, for which an application for an advance ruling or, where no such application was previously filed in respect of the eligibility period, an application for a certificate is filed with the Société de développement des entreprises culturelles (SODEC) after that day.

The increase in the cap on the tax credit will apply to a qualified performance, other than a qualified performance that is a comedy show, where one of its eligibility periods is not completed on March 26, 2015.

The decrease in the cap on the tax credit will apply to a qualified performance that is a comedy show for which an application for an advance ruling or, where no such application was previously filed in respect of the initial eligibility period an application for a certificate is filed with SODEC:

• after March 26, 2015, where SODEC considers that work on the production of the performance was not sufficiently advanced on March 26, 2015;
• after June 30, 2015, otherwise.

For more information, see pages A.91 and A.92 of the document Additional Information 2015-2016 (PDF – 1.96 MB) published by the Ministère des Finances.

Tax legislation will be amended to restore the former parameters of the tax credit for the production of performances. However, a new, lower cap will be applicable to a qualified performance that is a comedy show. Consequently,

• the tax credit rate applicable to a qualified labour expenditure will be 35% (instead of 28%);
• the maximum tax credit in respect of a qualified performance will be 
  • $1.25 million (instead of $1 million), where the qualified performance is a musical comedy,
  • $350,000, where the qualified performance is a comedy show,
  • $750,000 (instead of $600,000) otherwise.

The increase in the tax credit rate will apply to an eligibility period of a qualified performance beginning after March 26, 2015, for which an application for an advance ruling or, where no such application was previously filed in respect of the eligibility period, an application for a certificate is filed with the Société de développement des entreprises culturelles (SODEC) after that day.

The increase in the cap on the tax credit will apply to a qualified performance, other than a qualified performance that is a comedy show, where one of its eligibility periods is not completed on March 26, 2015.

The decrease in the cap on the tax credit will apply to a qualified performance that is a comedy show for which an application for an advance ruling or, where no such application was previously filed in respect of the initial eligibility period an application for a certificate is filed with SODEC:

• after March 26, 2015, where SODEC considers that work on the production of the performance was not sufficiently advanced on March 26, 2015;
• after June 30, 2015, otherwise.

For more information, see pages A.91 and A.92 of the document Additional Information 2015-2016 (PDF – 1.96 MB) published by the Ministère des Finances.

Tax legislation will be amended to restore the former parameters of the tax credit for the production of performances. However, a new, lower cap will be applicable to a qualified performance that is a comedy show. Consequently,

• the tax credit rate applicable to a qualified labour expenditure will be 35% (instead of 28%);
• the maximum tax credit in respect of a qualified performance will be 
  • $1.25 million (instead of $1 million), where the qualified performance is a musical comedy,
  • $350,000, where the qualified performance is a comedy show,
  • $750,000 (instead of $600,000) otherwise.

The increase in the tax credit rate will apply to an eligibility period of a qualified performance beginning after March 26, 2015, for which an application for an advance ruling or, where no such application was previously filed in respect of the eligibility period, an application for a certificate is filed with the Société de développement des entreprises culturelles (SODEC) after that day.

The increase in the cap on the tax credit will apply to a qualified performance, other than a qualified performance that is a comedy show, where one of its eligibility periods is not completed on March 26, 2015.

The decrease in the cap on the tax credit will apply to a qualified performance that is a comedy show for which an application for an advance ruling or, where no such application was previously filed in respect of the initial eligibility period an application for a certificate is filed with SODEC:

• after March 26, 2015, where SODEC considers that work on the production of the performance was not sufficiently advanced on March 26, 2015;
• after June 30, 2015, otherwise.

For more information, see pages A.91 and A.92 of the document Additional Information 2015-2016 (PDF – 1.96 MB) published by the Ministère des Finances.

The provisions of the Taxation Act prohibit an individual from obtaining a capital gains exemption on the disposition of qualified shares to a corporation with which the individual is not dealing at arm's length.

The provisions in question will be amended with respect to sellers who receive consideration as full or partial payment.

Moreover, the Act will also be amended so that the provisions will not apply where the seller claims the capital gains exemption in respect of a capital gain realized on the disposition of qualified shares in the primary (agriculture and fishing) and manufacturing sectors to a corporation with which the seller is not dealing at arm's length. The shares must, however, be disposed of in conjunction with the transfer of a qualified family business.

The amendments will apply with respect to dispositions of shares that take place after December 31, 2016.

For more information, see pages A.113 to A. 117 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

The provisions of the Taxation Act prohibit an individual from obtaining a capital gains exemption on the disposition of qualified shares to a corporation with which the individual is not dealing at arm's length.

The provisions in question will be amended with respect to sellers who receive consideration as full or partial payment.

Moreover, the Act will also be amended so that the provisions will not apply where the seller claims the capital gains exemption in respect of a capital gain realized on the disposition of qualified shares in the primary (agriculture and fishing) and manufacturing sectors to a corporation with which the seller is not dealing at arm's length. The shares must, however, be disposed of in conjunction with the transfer of a qualified family business.

The amendments will apply with respect to dispositions of shares that take place after December 31, 2016.

For more information, see pages A.113 to A. 117 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

The provisions of the Taxation Act prohibit an individual from obtaining a capital gains exemption on the disposition of qualified shares to a corporation with which the individual is not dealing at arm's length.

The provisions in question will be amended with respect to sellers who receive consideration as full or partial payment.

Moreover, the Act will also be amended so that the provisions will not apply where the seller claims the capital gains exemption in respect of a capital gain realized on the disposition of qualified shares in the primary (agriculture and fishing) and manufacturing sectors to a corporation with which the seller is not dealing at arm's length. The shares must, however, be disposed of in conjunction with the transfer of a qualified family business.

The amendments will apply with respect to dispositions of shares that take place after December 31, 2016.

For more information, see pages A.113 to A. 117 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

The provisions of the Taxation Act prohibit an individual from obtaining a capital gains exemption on the disposition of qualified shares to a corporation with which the individual is not dealing at arm's length.

The provisions in question will be amended with respect to sellers who receive consideration as full or partial payment.

Moreover, the Act will also be amended so that the provisions will not apply where the seller claims the capital gains exemption in respect of a capital gain realized on the disposition of qualified shares in the primary (agriculture and fishing) and manufacturing sectors to a corporation with which the seller is not dealing at arm's length. The shares must, however, be disposed of in conjunction with the transfer of a qualified family business.

The amendments will apply with respect to dispositions of shares that take place after December 31, 2016.

For more information, see pages A.113 to A. 117 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

The tax credit for Québec film productions (referred to in the Budget Speech as the refundable tax credit for Québec film and television production) will be reorganized so that a higher basic rate will apply in respect of a film, including a television program, that is not developed from a foreign concept or a foreign format.

New class of eligible films

The Act respecting the sectoral parameters of certain fiscal measures (hereinafter the "sectoral act") will be amended to introduce a new class of films. That class will include any film that is already eligible for the basic tax credit under the current rules and that is developed from a foreign concept or a foreign format.

This amendment will apply to film and television productions for which an application for an advance ruling or, where no such application has previously been filed in respect of the production, for which an application for a certificate is filed with the Société de développement des entreprises culturelles (SODEC) after March 26, 2015.

Increase in the basic rates

In addition, tax legislation will be amended to provide for an increase in the basic rates of the tax credit for Québec film productions in respect of eligible films that are not adapted from a foreign format.

Moreover, the current basic rates will continue to apply in respect of eligible films that are adapted from a foreign format. The various increases will remain the same in respect of all eligible films.

This amendment will apply to film and television productions for which an application for an advance ruling or, where no such application has previously been filed in respect of the production, for which an application for a certificate is filed with SODEC after March 26, 2015.

Other amendments

Furthermore, tax legislation and the sectoral act will be amended to restore the former rules pertaining to the criterion of "non-arm's length," thereby replacing the rules pertaining to the criterion of "associated corporations." Consequential amendments relating to the tax credit for film production services will also be made to tax legislation and the sectoral act.

With regard to corporations, the amendments to tax legislation will apply to labour expenditures or production costs, as the case may be, incurred in a taxation year that begins after March 26, 2015.

Also with regard to corporations, the amendments to the sectoral act will apply to taxation years that begin after March 26, 2015.

For more information, see pages A.84 to A.90 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

The tax credit for Québec film productions (referred to in the Budget Speech as the refundable tax credit for Québec film and television production) will be reorganized so that a higher basic rate will apply in respect of a film, including a television program, that is not developed from a foreign concept or a foreign format.

New class of eligible films

The Act respecting the sectoral parameters of certain fiscal measures (hereinafter the "sectoral act") will be amended to introduce a new class of films. That class will include any film that is already eligible for the basic tax credit under the current rules and that is developed from a foreign concept or a foreign format.

This amendment will apply to film and television productions for which an application for an advance ruling or, where no such application has previously been filed in respect of the production, for which an application for a certificate is filed with the Société de développement des entreprises culturelles (SODEC) after March 26, 2015.

Increase in the basic rates

In addition, tax legislation will be amended to provide for an increase in the basic rates of the tax credit for Québec film productions in respect of eligible films that are not adapted from a foreign format.

Moreover, the current basic rates will continue to apply in respect of eligible films that are adapted from a foreign format. The various increases will remain the same in respect of all eligible films.

This amendment will apply to film and television productions for which an application for an advance ruling or, where no such application has previously been filed in respect of the production, for which an application for a certificate is filed with SODEC after March 26, 2015.

Other amendments

Furthermore, tax legislation and the sectoral act will be amended to restore the former rules pertaining to the criterion of "non-arm's length," thereby replacing the rules pertaining to the criterion of "associated corporations." Consequential amendments relating to the tax credit for film production services will also be made to tax legislation and the sectoral act.

With regard to corporations, the amendments to tax legislation will apply to labour expenditures or production costs, as the case may be, incurred in a taxation year that begins after March 26, 2015.

Also with regard to corporations, the amendments to the sectoral act will apply to taxation years that begin after March 26, 2015.

For more information, see pages A.84 to A.90 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

The tax credit for Québec film productions (referred to in the Budget Speech as the refundable tax credit for Québec film and television production) will be reorganized so that a higher basic rate will apply in respect of a film, including a television program, that is not developed from a foreign concept or a foreign format.

New class of eligible films

The Act respecting the sectoral parameters of certain fiscal measures (hereinafter the "sectoral act") will be amended to introduce a new class of films. That class will include any film that is already eligible for the basic tax credit under the current rules and that is developed from a foreign concept or a foreign format.

This amendment will apply to film and television productions for which an application for an advance ruling or, where no such application has previously been filed in respect of the production, for which an application for a certificate is filed with the Société de développement des entreprises culturelles (SODEC) after March 26, 2015.

Increase in the basic rates

In addition, tax legislation will be amended to provide for an increase in the basic rates of the tax credit for Québec film productions in respect of eligible films that are not adapted from a foreign format.

Moreover, the current basic rates will continue to apply in respect of eligible films that are adapted from a foreign format. The various increases will remain the same in respect of all eligible films.

This amendment will apply to film and television productions for which an application for an advance ruling or, where no such application has previously been filed in respect of the production, for which an application for a certificate is filed with SODEC after March 26, 2015.

Other amendments

Furthermore, tax legislation and the sectoral act will be amended to restore the former rules pertaining to the criterion of "non-arm's length," thereby replacing the rules pertaining to the criterion of "associated corporations." Consequential amendments relating to the tax credit for film production services will also be made to tax legislation and the sectoral act.

With regard to corporations, the amendments to tax legislation will apply to labour expenditures or production costs, as the case may be, incurred in a taxation year that begins after March 26, 2015.

Also with regard to corporations, the amendments to the sectoral act will apply to taxation years that begin after March 26, 2015.

For more information, see pages A.84 to A.90 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.