Revenu Québec Infos

On June 1, 2015, the rate of the tax credit for the acquisition of shares issued by Fondaction was set at 20% for any eligible share acquired after May 31, 2015, and before June 1, 2016.

In the Budget Speech delivered on March 17, 2016, the Minister of Finance of Québec announced that the rate of the tax credit would be maintained at 20% for any eligible share acquired after May 31, 2016, and before June 1, 2018. Accordingly, for 2016, if an employee has authorized you to withhold an amount from his or her pay for the purchase of shares issued by Fondaction, you must use the 20% rate to calculate the amount of income tax to withhold.

If you use the source deduction table to determine the amount of income tax to withhold, you must, for any pay period during which Fondaction shares were purchased, subtract, from the remuneration paid to the employee, 100% of the amount deducted from the employee's remuneration for the purchase of such shares.

If you use the formulas, you must, for any pay period during which Fondaction shares were purchased, subtract, from the income tax payable for the year, 20% of the amount deducted from the employee's remuneration for the purchase of such shares.

On June 1, 2015, the rate of the tax credit for the acquisition of shares issued by Fondaction was set at 20% for any eligible share acquired after May 31, 2015, and before June 1, 2016.

In the Budget Speech delivered on March 17, 2016, the Minister of Finance of Québec announced that the rate of the tax credit would be maintained at 20% for any eligible share acquired after May 31, 2016, and before June 1, 2018. Accordingly, for 2016, if an employee has authorized you to withhold an amount from his or her pay for the purchase of shares issued by Fondaction, you must use the 20% rate to calculate the amount of income tax to withhold.

If you use the source deduction table to determine the amount of income tax to withhold, you must, for any pay period during which Fondaction shares were purchased, subtract, from the remuneration paid to the employee, 100% of the amount deducted from the employee's remuneration for the purchase of such shares.

If you use the formulas, you must, for any pay period during which Fondaction shares were purchased, subtract, from the income tax payable for the year, 20% of the amount deducted from the employee's remuneration for the purchase of such shares.

On June 1, 2015, the rate of the tax credit for the acquisition of shares issued by Fondaction was set at 20% for any eligible share acquired after May 31, 2015, and before June 1, 2016.

In the Budget Speech delivered on March 17, 2016, the Minister of Finance of Québec announced that the rate of the tax credit would be maintained at 20% for any eligible share acquired after May 31, 2016, and before June 1, 2018. Accordingly, for 2016, if an employee has authorized you to withhold an amount from his or her pay for the purchase of shares issued by Fondaction, you must use the 20% rate to calculate the amount of income tax to withhold.

If you use the source deduction table to determine the amount of income tax to withhold, you must, for any pay period during which Fondaction shares were purchased, subtract, from the remuneration paid to the employee, 100% of the amount deducted from the employee's remuneration for the purchase of such shares.

If you use the formulas, you must, for any pay period during which Fondaction shares were purchased, subtract, from the income tax payable for the year, 20% of the amount deducted from the employee's remuneration for the purchase of such shares.

On June 1, 2015, the rate of the tax credit for the acquisition of shares issued by Fondaction was set at 20% for any eligible share acquired after May 31, 2015, and before June 1, 2016.

In the Budget Speech delivered on March 17, 2016, the Minister of Finance of Québec announced that the rate of the tax credit would be maintained at 20% for any eligible share acquired after May 31, 2016, and before June 1, 2018. Accordingly, for 2016, if an employee has authorized you to withhold an amount from his or her pay for the purchase of shares issued by Fondaction, you must use the 20% rate to calculate the amount of income tax to withhold.

If you use the source deduction table to determine the amount of income tax to withhold, you must, for any pay period during which Fondaction shares were purchased, subtract, from the remuneration paid to the employee, 100% of the amount deducted from the employee's remuneration for the purchase of such shares.

If you use the formulas, you must, for any pay period during which Fondaction shares were purchased, subtract, from the income tax payable for the year, 20% of the amount deducted from the employee's remuneration for the purchase of such shares. 

A temporary refundable tax credit has been established to support the implementation and maintenance of major digital transformation projects in Québec.

The tax credit applies to eligible digitization contracts entered into after March 17, 2016, and before January 1, 2019, and is intended to encourage the implementation of projects that create in Québec at least 500 jobs that must be maintained for a period of seven years. 

The tax credit is equal to 24% of the qualified wages paid by a corporation to an eligible employee under an eligible digitization contract over a two-year period, up to a maximum of $20,000 per employee each year.

Investissement Québec must issue a certificate in respect of the contract for it to be considered an eligible digitization contract.

For more information, see pages A.59 to A.67 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

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.

The tax credit relating to information technologies in small and medium-sized businesses has been enhanced in two ways. First, the eligibility criteria for the tax credit have been broadened to include corporations doing business in the wholesale and retail sectors. Second, the threshold amount of paid-up capital of a qualified corporation at which the tax credit rate falls to zero has been increased to $50 million.

Eligibility of corporations doing business in the wholesale and retail sectors

Fiscal legislation has been amended so that a corporation can claim the tax credit relating to information technologies for a taxation year in which the proportion of its eligible activities (manufacturing and processing activities, primary sector activities, and activities in the wholesale and retail sectors) for purposes of the tax credit is greater than 50%.

The proportion of eligible activities of a qualified corporation for a taxation year for purposes of the tax credit is calculated as follows: the salaries or wages incurred by the corporation in respect of its employees whose duties consist of manufacturing or processing activities, primary sector activities, or activities in the wholesale or retail sectors, divided by the salaries or wages incurred by the corporation in respect of all its employees.

This change applies in respect of a taxation year of a corporation ending after March 17, 2016, but only to expenditures related to the supply of a qualified management software package incurred after March 17, 2016, and before January 1, 2020, under an information technology integration contract the negotiation of which began after March 17, 2016, and before January 1, 2020, and in respect of which Investissement Québec has issued a certificate.

For more information, see pages A.57 and A.58 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Increase in the threshold amount of paid-up capital

Fiscal legislation has been amended so that the 20% rate of the tax credit relating to information technologies that a qualified corporation can claim for a taxation year will not be reduced if the corporation's paid-up capital for that year is $35 million or less.

That rate is reduced linearly for a taxation year if the paid-up capital of a qualified corporation is more than $35 million; it falls to zero if the qualified corporation's paid-up capital totals $50 million or more. Thus, a qualified corporation that has $50 million or more in paid-up capital for a taxation year cannot benefit from the tax credit.

This change applies in respect of a taxation year of a corporation ending after March 17, 2016.

For more information, see page A.58 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

There has been a 25% increase in the rates of the refundable tax credit relating to resources that qualified corporations can claim in respect of eligible expenses related to mineral resources that were incurred in the Near North or the Far North of Québec. Thus, the tax credit has been increased from 31% to 38.75% for a corporation that does not operate a mineral resource and is not a member of an associated group having a member who operates such a resource. The tax credit has been increased from 15% to 18.75% for other corporations.

The increased rates of the refundable tax credit relating to resources apply in respect of eligible expenses incurred after March 17, 2016.

For more information, see pages A.67 and A.68 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Fiscal legislation will be amended to provide that contributions made illegally or otherwise, directly or indirectly, for political purposes are not deductible in calculating a taxpayer's income from a business or property.

This change will apply to contributions made for political purposes after March 17, 2016. 

For more information, see pages A.72 and A. 73 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Effective as of the 2018 taxation year, the age of eligibility for the tax credit for experienced workers will be lowered to 62 years of age, the average retirement age of Quebecers. For this new category of workers, the maximum amount of eligible work income on which the tax credit will be calculated is $4,000.

For more information, see pages A.24 to A.27 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.

Income-based limits eliminated

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

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

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

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

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

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

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.

Effective August 1, 2016, the municipal tax for 9-1-1 service for each telephone service will be $0.46 a month per telephone number or, in the case of a multi-line service other than a Centrex service, per outgoing access line.

Effective August 1, 2016, the municipal tax for 9-1-1 service for each telephone service will be $0.46 a month per telephone number or, in the case of a multi-line service other than a Centrex service, per outgoing access line.

Effective August 1, 2016, the municipal tax for 9-1-1 service for each telephone service will be $0.46 a month per telephone number or, in the case of a multi-line service other than a Centrex service, per outgoing access line.

Effective August 1, 2016, the municipal tax for 9-1-1 service for each telephone service (This link will open a new window) will be $0.46 a month per telephone number or, in the case of a multi-line service (This link will open a new window) other than a Centrex service, per outgoing access line.

The GST and QST apply to the sale of a hair prosthesis, whether or not it is sold by prescription. Wigs, hairpieces, toupees and volumizing systems are examples of hair prostheses.

The GST and QST apply to the sale of a hair prosthesis, whether or not it is sold by prescription. Wigs, hairpieces, toupees and volumizing systems are examples of hair prostheses.

The GST and QST apply to the sale of a hair prosthesis, whether or not it is sold by prescription. Wigs, hairpieces, toupees and volumizing systems are examples of hair prostheses.

The GST and QST apply to the sale of a hair prosthesis, whether or not it is sold by prescription. Wigs, hairpieces, toupees and volumizing systems are examples of hair prostheses.