Revenu Québec Infos

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.

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.

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.

Tax legislation will be amended to restore the former rate of 35% applicable to a qualified film dubbing expenditure.

This amendment will apply in respect of a qualified production the dubbing of which is completed after March 26, 2015.

For more information, see pages A.92 and A.93 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 rate of 35% applicable to a qualified film dubbing expenditure.

This amendment will apply in respect of a qualified production the dubbing of which is completed after March 26, 2015.

For more information, see pages A.92 and A.93 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 rate of 35% applicable to a qualified film dubbing expenditure.

This amendment will apply in respect of a qualified production the dubbing of which is completed after March 26, 2015.

For more information, see pages A.92 and A.93 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 rate of 35% applicable to a qualified film dubbing expenditure.

This amendment will apply in respect of a qualified production the dubbing of which is completed after March 26, 2015.

For more information, see pages A.92 and A.93 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

A number of changes will be made to the tax credit for the development of e-business (hereinafter the "TCEB") and a new non-refundable tax credit will be established.

Elimination of the end date of the TCEB

Tax legislation will be amended to eliminate the end date of the TCEB, which was supposed to be December 31, 2025. Consequently, a qualified corporation will still be able to claim the TCEB in respect of qualified wages it incurs after December 31, 2025, subject to the other conditions that apply.

Exclusion of wages relating to certain government contracts

Tax legislation will be amended to exclude from an employee's qualified wages, for purposes of the TCEB, any portion of the wages attributable to the employee's duties in carrying out work under an agreement entered into by the employer and a government entity.

This amendment will apply to wages that are incurred after September 30, 2015, by a qualified corporation in respect of an eligible employee and that are attributable to the employee's duties in carrying out work under an agreement with a government entity that is entered into, renewed or extended after that date.

Changes made to the concept of e-business related activities and to the criterion of "services supplied"

The Act respecting the sectoral parameters of certain fiscal measures (hereinafter the "sectoral act") will be amended to add the following particulars:

• Activities must be primarily related to e-business to be eligible for the TCEB.
• Activities carried out by a qualified corporation's employees are not to be considered related to e-business where the results of the activities are integrated into property intended for sale or are used to operate such property.
• Where the results of activities carried out by a qualified corporation's employees are integrated into property intended for sale or are used to operate such property, the gross income from such activities is not to be considered for purposes of the criterion relating to "services supplied," which must be met by the corporation to qualify for the TCEB.

With regard to qualified corporations, these amendments will apply to taxation years that begin after March 26, 2015.

Establishment of a non-refundable tax credit for the development of e-business

The overall level of tax assistance for e-business development activities will be restored to 30%, by adding to the current rate of 24% for the TCEB a new non-refundable tax credit whose rate will be 6%.

All the conditions in the sectoral act that apply to the TCEB will apply to the non-refundable tax credit. Also, for a taxation year, the certificates used for purposes of the TCEB will also be used for purposes of the new non-refundable tax credit.

Similarly, all the conditions in tax legislation that apply to the TCEB will apply to the non-refundable tax credit, subject to the rules for determining the amount of the new tax credit, which cannot be greater than $5,000 per employee, calculated on an annual basis.

Furthermore, a qualified 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 is not entitled to the TCEB or a taxation year ending before March 27, 2015.

These amendments will apply to wages incurred after March 26, 2015, by a qualified corporation in respect of an eligible employee.

For more information, see pages A.80 to A.84 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

A number of changes will be made to the tax credit for the development of e-business (hereinafter the "TCEB") and a new non-refundable tax credit will be established.

Elimination of the end date of the TCEB

Tax legislation will be amended to eliminate the end date of the TCEB, which was supposed to be December 31, 2025. Consequently, a qualified corporation will still be able to claim the TCEB in respect of qualified wages it incurs after December 31, 2025, subject to the other conditions that apply.

Exclusion of wages relating to certain government contracts

Tax legislation will be amended to exclude from an employee's qualified wages, for purposes of the TCEB, any portion of the wages attributable to the employee's duties in carrying out work under an agreement entered into by the employer and a government entity.

This amendment will apply to wages that are incurred after September 30, 2015, by a qualified corporation in respect of an eligible employee and that are attributable to the employee's duties in carrying out work under an agreement with a government entity that is entered into, renewed or extended after that date.

Changes made to the concept of e-business related activities and to the criterion of "services supplied"

The Act respecting the sectoral parameters of certain fiscal measures (hereinafter the "sectoral act") will be amended to add the following particulars:

• Activities must be primarily related to e-business to be eligible for the TCEB.
• Activities carried out by a qualified corporation's employees are not to be considered related to e-business where the results of the activities are integrated into property intended for sale or are used to operate such property.
• Where the results of activities carried out by a qualified corporation's employees are integrated into property intended for sale or are used to operate such property, the gross income from such activities is not to be considered for purposes of the criterion relating to "services supplied," which must be met by the corporation to qualify for the TCEB.

With regard to qualified corporations, these amendments will apply to taxation years that begin after March 26, 2015.

Establishment of a non-refundable tax credit for the development of e-business

The overall level of tax assistance for e-business development activities will be restored to 30%, by adding to the current rate of 24% for the TCEB a new non-refundable tax credit whose rate will be 6%.

All the conditions in the sectoral act that apply to the TCEB will apply to the non-refundable tax credit. Also, for a taxation year, the certificates used for purposes of the TCEB will also be used for purposes of the new non-refundable tax credit.

Similarly, all the conditions in tax legislation that apply to the TCEB will apply to the non-refundable tax credit, subject to the rules for determining the amount of the new tax credit, which cannot be greater than $5,000 per employee, calculated on an annual basis.

Furthermore, a qualified 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 is not entitled to the TCEB or a taxation year ending before March 27, 2015.

These amendments will apply to wages incurred after March 26, 2015, by a qualified corporation in respect of an eligible employee.

For more information, see pages A.80 to A.84 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

A number of changes will be made to the tax credit for the development of e-business (hereinafter the "TCEB") and a new non-refundable tax credit will be established.

Elimination of the end date of the TCEB

Tax legislation will be amended to eliminate the end date of the TCEB, which was supposed to be December 31, 2025. Consequently, a qualified corporation will still be able to claim the TCEB in respect of qualified wages it incurs after December 31, 2025, subject to the other conditions that apply.

Exclusion of wages relating to certain government contracts

Tax legislation will be amended to exclude from an employee's qualified wages, for purposes of the TCEB, any portion of the wages attributable to the employee's duties in carrying out work under an agreement entered into by the employer and a government entity.

This amendment will apply to wages that are incurred after September 30, 2015, by a qualified corporation in respect of an eligible employee and that are attributable to the employee's duties in carrying out work under an agreement with a government entity that is entered into, renewed or extended after that date.

Changes made to the concept of e-business related activities and to the criterion of "services supplied"

The Act respecting the sectoral parameters of certain fiscal measures (hereinafter the "sectoral act") will be amended to add the following particulars:

• Activities must be primarily related to e-business to be eligible for the TCEB.
• Activities carried out by a qualified corporation's employees are not to be considered related to e-business where the results of the activities are integrated into property intended for sale or are used to operate such property.
• Where the results of activities carried out by a qualified corporation's employees are integrated into property intended for sale or are used to operate such property, the gross income from such activities is not to be considered for purposes of the criterion relating to "services supplied," which must be met by the corporation to qualify for the TCEB.

With regard to qualified corporations, these amendments will apply to taxation years that begin after March 26, 2015.

Establishment of a non-refundable tax credit for the development of e-business

The overall level of tax assistance for e-business development activities will be restored to 30%, by adding to the current rate of 24% for the TCEB a new non-refundable tax credit whose rate will be 6%.

All the conditions in the sectoral act that apply to the TCEB will apply to the non-refundable tax credit. Also, for a taxation year, the certificates used for purposes of the TCEB will also be used for purposes of the new non-refundable tax credit.

Similarly, all the conditions in tax legislation that apply to the TCEB will apply to the non-refundable tax credit, subject to the rules for determining the amount of the new tax credit, which cannot be greater than $5,000 per employee, calculated on an annual basis.

Furthermore, a qualified 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 is not entitled to the TCEB or a taxation year ending before March 27, 2015.

These amendments will apply to wages incurred after March 26, 2015, by a qualified corporation in respect of an eligible employee.

For more information, see pages A.80 to A.84 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

Starting in 2016, the age at which you become eligible for the age amount will gradually be raised until it reaches 70. For 2020 and all subsequent taxation years, the eligibility age will remain 70.

For more information, see page A.16 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

Starting in 2016, the age at which you become eligible for the age amount will gradually be raised until it reaches 70. For 2020 and all subsequent taxation years, the eligibility age will remain 70.

For more information, see page A.16 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

Starting in 2016, the age at which you become eligible for the age amount will gradually be raised until it reaches 70. For 2020 and all subsequent taxation years, the eligibility age will remain 70.

For more information, see page A.16 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

Tax legislation will be amended to make changes to the above-mentioned tax credit (referred to in the Budget Speech as the tax credit for investments relating to manufacturing and processing equipment).

Rate adjustments

Tax legislation will be amended to reduce, by 8%, the increased rate of the tax credit for investment that applies in respect of qualified property acquired for use primarily in

• a remote zone;
• the eastern part of the Bas-Saint-Laurent administrative region; or
• an intermediate zone.

Therefore, the maximum rate of the tax credit that a qualified corporation may claim in respect of qualified property acquired for use primarily in a remote zone will be 24% (the 4% base rate plus a 20% increase in the base rate).

Furthermore, the maximum rate of the tax credit that a qualified corporation may claim in respect of qualified property acquired for use primarily in the eastern part of the Bas-Saint-Laurent administrative region will be 16% (the 4% base rate plus a 12% increase in the base rate).

Likewise, the maximum rate of the tax credit that a qualified corporation may claim in respect of qualified property acquired for use primarily in an intermediate zone will be 8% (the 4% base rate plus a 4% increase in the base rate).

Finally, in view of the 8% reduction in tax assistance, a qualified corporation will no longer be able to claim the tax credit for investment in respect of eligible expenses incurred in another region.

These amendments to tax legislation will apply in respect of eligible expenses incurred after December 31, 2016.

Extension of the tax credit for investment and change in the definition of the term "qualified property" 

Tax legislation will be amended to extend by five years the period in which property must be acquired in order to be considered qualified property for purposes of the tax credit for investment. Thus, property may be considered qualified property if it is acquired before January 1, 2023.

The definition of the term "qualified property" will also be changed so that property acquired after December 31, 2016 (other than property acquired for use primarily in a remote zone, the eastern part of the Bas-Saint-Laurent administrative region or an intermediate zone) will not be considered qualified property for purposes of the tax credit for investment.

For more information, see pages A.48 to A.51 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

Tax legislation will be amended to make changes to the above-mentioned tax credit (referred to in the Budget Speech as the tax credit for investments relating to manufacturing and processing equipment).

Rate adjustments

Tax legislation will be amended to reduce, by 8%, the increased rate of the tax credit for investment that applies in respect of qualified property acquired for use primarily in

• a remote zone;
• the eastern part of the Bas-Saint-Laurent administrative region; or
• an intermediate zone.

Therefore, the maximum rate of the tax credit that a qualified corporation may claim in respect of qualified property acquired for use primarily in a remote zone will be 24% (the 4% base rate plus a 20% increase in the base rate).

Furthermore, the maximum rate of the tax credit that a qualified corporation may claim in respect of qualified property acquired for use primarily in the eastern part of the Bas-Saint-Laurent administrative region will be 16% (the 4% base rate plus a 12% increase in the base rate).

Likewise, the maximum rate of the tax credit that a qualified corporation may claim in respect of qualified property acquired for use primarily in an intermediate zone will be 8% (the 4% base rate plus a 4% increase in the base rate).

Finally, in view of the 8% reduction in tax assistance, a qualified corporation will no longer be able to claim the tax credit for investment in respect of eligible expenses incurred in another region.

These amendments to tax legislation will apply in respect of eligible expenses incurred after December 31, 2016.

Extension of the tax credit for investment and change in the definition of the term "qualified property" 

Tax legislation will be amended to extend by five years the period in which property must be acquired in order to be considered qualified property for purposes of the tax credit for investment. Thus, property may be considered qualified property if it is acquired before January 1, 2023.

The definition of the term "qualified property" will also be changed so that property acquired after December 31, 2016 (other than property acquired for use primarily in a remote zone, the eastern part of the Bas-Saint-Laurent administrative region or an intermediate zone) will not be considered qualified property for purposes of the tax credit for investment.

For more information, see pages A.48 to A.51 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

Tax legislation will be amended to make changes to the above-mentioned tax credit (referred to in the Budget Speech as the tax credit for investments relating to manufacturing and processing equipment).

Rate adjustments

Tax legislation will be amended to reduce, by 8%, the increased rate of the tax credit for investment that applies in respect of qualified property acquired for use primarily in

• a remote zone;
• the eastern part of the Bas-Saint-Laurent administrative region; or
• an intermediate zone.

Therefore, the maximum rate of the tax credit that a qualified corporation may claim in respect of qualified property acquired for use primarily in a remote zone will be 24% (the 4% base rate plus a 20% increase in the base rate).

Furthermore, the maximum rate of the tax credit that a qualified corporation may claim in respect of qualified property acquired for use primarily in the eastern part of the Bas-Saint-Laurent administrative region will be 16% (the 4% base rate plus a 12% increase in the base rate).

Likewise, the maximum rate of the tax credit that a qualified corporation may claim in respect of qualified property acquired for use primarily in an intermediate zone will be 8% (the 4% base rate plus a 4% increase in the base rate).

Finally, in view of the 8% reduction in tax assistance, a qualified corporation will no longer be able to claim the tax credit for investment in respect of eligible expenses incurred in another region.

These amendments to tax legislation will apply in respect of eligible expenses incurred after December 31, 2016.

Extension of the tax credit for investment and change in the definition of the term "qualified property" 

Tax legislation will be amended to extend by five years the period in which property must be acquired in order to be considered qualified property for purposes of the tax credit for investment. Thus, property may be considered qualified property if it is acquired before January 1, 2023.

The definition of the term "qualified property" will also be changed so that property acquired after December 31, 2016 (other than property acquired for use primarily in a remote zone, the eastern part of the Bas-Saint-Laurent administrative region or an intermediate zone) will not be considered qualified property for purposes of the tax credit for investment.

For more information, see pages A.48 to A.51 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

On June 1, 2015, the tax on lodging increases from $2 to $3 per overnight stay in the Chaudière-Appalaches tourism region. The tax on lodging applies at a rate of $3 per overnight stay if the accommodation unit supplied is billed and occupied after May 31, 2015.

For more information, see the transitional rules that apply in the Chaudière-Appalaches tourism region.

On June 1, 2015, the tax on lodging increases from $2 to $3 per overnight stay in the Chaudière-Appalaches tourism region. The tax on lodging applies at a rate of $3 per overnight stay if the accommodation unit supplied is billed and occupied after May 31, 2015.

For more information, see the transitional rules that apply in the Chaudière-Appalaches tourism region.

On June 1, 2015, the tax on lodging increases from $2 to $3 per overnight stay in the Chaudière-Appalaches tourism region. The tax on lodging applies at a rate of $3 per overnight stay if the accommodation unit supplied is billed and occupied after May 31, 2015.

For more information, see the transitional rules that apply in the Chaudière-Appalaches tourism region.