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To boost the international growth potential of Québec companies carrying out their activities in the production of multimedia events or environments on the international stage, tax legislation will be amended to remove the $350,000 limit on the tax credit.

This amendment applies to qualified productions for which an application for an advance ruling, or an application for a certificate if no application for an advance ruling was previously filed for the production, is submitted to the Société de développement des entreprises culturelles after March 27, 2018.

For more information, see pages A.92 and A.93 Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

To boost the international growth potential of Québec companies carrying out their activities in the production of multimedia events or environments on the international stage, tax legislation will be amended to remove the $350,000 limit on the tax credit.

This amendment applies to qualified productions for which an application for an advance ruling, or an application for a certificate if no application for an advance ruling was previously filed for the production, is submitted to the Société de développement des entreprises culturelles after March 27, 2018.

For more information, see pages A.92 and A.93 Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

To further ease the tax burden on small and medium-sized businesses (SMBs) in sectors other than the primary and manufacturing sectors, and thus standardize the tax rates applicable to SMBs, the 3.7% small business deduction (SBD) rate has been raised. It will be further raised until the tax rate applicable to the portion of a corporation's income qualifying for the SBD reaches 4% in 2021. Consequently, the rate of the additional deduction for SMBs in the primary and manufacturing sectors has been reduced and will be further reduced until it has been eliminated altogether in 2021.

The maximum SBD rate available to a corporation is now:

• 4.7% for the period that begins on March 28, 2018, and ends on December 31, 2018;
• 5.6% for the period that begins on January 1, 2019, and ends on December 31, 2019;
• 6.5% for the period that begins on January 1, 2020, and ends on December 31, 2020;
• 7.5% as of January 1, 2021.

Accordingly, the rate of the additional deduction for SMBs in the primary and manufacturing sectors has been reduced so that the maximum deduction rate available to corporations is 3% for the period that begins on March 28, 2018, and ends on December 31, 2018, 2% for the period that begins on January 1, 2019, and ends on December 31, 2019, and 1% for the period that begins on January 1, 2020, and ends on December 31, 2020. The additional deduction for SMBs in the primary and manufacturing sectors will be eliminated as of January 1, 2021.

The announced changes to the SBD rates and to the rate of the additional deduction for SMBs in the primary and manufacturing sectors apply to taxation years of a corporation that end after March 28, 2018.

If a taxation year of a corporation straddles periods to which different SBD rates apply, the SBD rate that applies to the corporation for that taxation year is an average rate calculated taking into account the number of days in the taxation year included in each period and the SBD rate applicable to each of these periods.

Similarly, the rate of the additional deduction for SMBs in the primary and manufacturing sectors that applies to the corporation for that taxation year is an average rate calculated taking into account the number of days in the taxation year included in each period and the rate of the additional deduction for SMBs in the primary and manufacturing sectors applicable to each of these periods.

For more information, see pages A.60 and A.63 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

To further ease the tax burden on small and medium-sized businesses (SMBs) in sectors other than the primary and manufacturing sectors, and thus standardize the tax rates applicable to SMBs, the 3.7% small business deduction (SBD) rate has been raised. It will be further raised until the tax rate applicable to the portion of a corporation's income qualifying for the SBD reaches 4% in 2021. Consequently, the rate of the additional deduction for SMBs in the primary and manufacturing sectors has been reduced and will be further reduced until it has been eliminated altogether in 2021.

The maximum SBD rate available to a corporation is now:

• 4.7% for the period that begins on March 28, 2018, and ends on December 31, 2018;
• 5.6% for the period that begins on January 1, 2019, and ends on December 31, 2019;
• 6.5% for the period that begins on January 1, 2020, and ends on December 31, 2020;
• 7.5% as of January 1, 2021.

Accordingly, the rate of the additional deduction for SMBs in the primary and manufacturing sectors has been reduced so that the maximum deduction rate available to corporations is 3% for the period that begins on March 28, 2018, and ends on December 31, 2018, 2% for the period that begins on January 1, 2019, and ends on December 31, 2019, and 1% for the period that begins on January 1, 2020, and ends on December 31, 2020. The additional deduction for SMBs in the primary and manufacturing sectors will be eliminated as of January 1, 2021.

The announced changes to the SBD rates and to the rate of the additional deduction for SMBs in the primary and manufacturing sectors apply to taxation years of a corporation that end after March 28, 2018.

If a taxation year of a corporation straddles periods to which different SBD rates apply, the SBD rate that applies to the corporation for that taxation year is an average rate calculated taking into account the number of days in the taxation year included in each period and the SBD rate applicable to each of these periods.

Similarly, the rate of the additional deduction for SMBs in the primary and manufacturing sectors that applies to the corporation for that taxation year is an average rate calculated taking into account the number of days in the taxation year included in each period and the rate of the additional deduction for SMBs in the primary and manufacturing sectors applicable to each of these periods.

For more information, see pages A.60 and A.63 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

To further ease the tax burden on small and medium-sized businesses (SMBs) in sectors other than the primary and manufacturing sectors, and thus standardize the tax rates applicable to SMBs, the 3.7% small business deduction (SBD) rate has been raised. It will be further raised until the tax rate applicable to the portion of a corporation's income qualifying for the SBD reaches 4% in 2021. Consequently, the rate of the additional deduction for SMBs in the primary and manufacturing sectors has been reduced and will be further reduced until it has been eliminated altogether in 2021.

The maximum SBD rate available to a corporation is now:

• 4.7% for the period that begins on March 28, 2018, and ends on December 31, 2018;
• 5.6% for the period that begins on January 1, 2019, and ends on December 31, 2019;
• 6.5% for the period that begins on January 1, 2020, and ends on December 31, 2020;
• 7.5% as of January 1, 2021.

Accordingly, the rate of the additional deduction for SMBs in the primary and manufacturing sectors has been reduced so that the maximum deduction rate available to corporations is 3% for the period that begins on March 28, 2018, and ends on December 31, 2018, 2% for the period that begins on January 1, 2019, and ends on December 31, 2019, and 1% for the period that begins on January 1, 2020, and ends on December 31, 2020. The additional deduction for SMBs in the primary and manufacturing sectors will be eliminated as of January 1, 2021.

The announced changes to the SBD rates and to the rate of the additional deduction for SMBs in the primary and manufacturing sectors apply to taxation years of a corporation that end after March 28, 2018.

If a taxation year of a corporation straddles periods to which different SBD rates apply, the SBD rate that applies to the corporation for that taxation year is an average rate calculated taking into account the number of days in the taxation year included in each period and the SBD rate applicable to each of these periods.

Similarly, the rate of the additional deduction for SMBs in the primary and manufacturing sectors that applies to the corporation for that taxation year is an average rate calculated taking into account the number of days in the taxation year included in each period and the rate of the additional deduction for SMBs in the primary and manufacturing sectors applicable to each of these periods.

For more information, see pages A.60 and A.63 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

The eligible dividend tax credit rate, which applies to the dividend gross-up amount, has been reduced from 11.9% to:

• 11.86% for a dividend received or deemed received after March 27, 2018, and before January 1, 2019;
• 11.78% for a dividend received or deemed received in 2019; and
• 11.7% for a dividend received or deemed received after December 31, 2019.

Similarly, the non-eligible dividend tax credit rate, which applies to the dividend gross-up amount, has been reduced from 7.05% to:

• 6.28% for a dividend received or deemed received after March 27, 2018, and before January 1, 2019;
• 5.55% for a dividend received or deemed received in 2019;
• 4.77% for a dividend received or deemed received in 2020; and
• 4.01% for a dividend received or deemed received after December 31, 2020.

For more information, see pages A.47 and A.48 of the Additional Information 2018‑2019 (PDF – 3.73 MB) published by the Ministère des Finances.

The eligible dividend tax credit rate, which applies to the dividend gross-up amount, has been reduced from 11.9% to:

• 11.86% for a dividend received or deemed received after March 27, 2018, and before January 1, 2019;
• 11.78% for a dividend received or deemed received in 2019; and
• 11.7% for a dividend received or deemed received after December 31, 2019.

Similarly, the non-eligible dividend tax credit rate, which applies to the dividend gross-up amount, has been reduced from 7.05% to:

• 6.28% for a dividend received or deemed received after March 27, 2018, and before January 1, 2019;
• 5.55% for a dividend received or deemed received in 2019;
• 4.77% for a dividend received or deemed received in 2020; and
• 4.01% for a dividend received or deemed received after December 31, 2020.

For more information, see pages A.47 and A.48 of the Additional Information 2018‑2019 (PDF – 3.73 MB) published by the Ministère des Finances.

The eligible dividend tax credit rate, which applies to the dividend gross-up amount, has been reduced from 11.9% to:

• 11.86% for a dividend received or deemed received after March 27, 2018, and before January 1, 2019;
• 11.78% for a dividend received or deemed received in 2019; and
• 11.7% for a dividend received or deemed received after December 31, 2019.

Similarly, the non-eligible dividend tax credit rate, which applies to the dividend gross-up amount, has been reduced from 7.05% to:

• 6.28% for a dividend received or deemed received after March 27, 2018, and before January 1, 2019;
• 5.55% for a dividend received or deemed received in 2019;
• 4.77% for a dividend received or deemed received in 2020; and
• 4.01% for a dividend received or deemed received after December 31, 2020.

For more information, see pages A.47 and A.48 of the Additional Information 2018‑2019 (PDF – 3.73 MB) published by the Ministère des Finances.

The eligible dividend tax credit rate, which applies to the dividend gross-up amount, has been reduced from 11.9% to:

• 11.86% for a dividend received or deemed received after March 27, 2018, and before January 1, 2019;
• 11.78% for a dividend received or deemed received in 2019; and
• 11.7% for a dividend received or deemed received after December 31, 2019.

Similarly, the non-eligible dividend tax credit rate, which applies to the dividend gross-up amount, has been reduced from 7.05% to:

• 6.28% for a dividend received or deemed received after March 27, 2018, and before January 1, 2019;
• 5.55% for a dividend received or deemed received in 2019;
• 4.77% for a dividend received or deemed received in 2020; and
• 4.01% for a dividend received or deemed received after December 31, 2020.

For more information, see pages A.47 and A.48 of the Additional Information 2018‑2019 (PDF – 3.73 MB) published by the Ministère des Finances.

To further encourage experienced workers to remain in the labour market, the age of eligibility for the tax credit will be lowered, as of the 2018 taxation year, to 61 years of age. For workers who are 61 years old, the maximum amount of eligible work income on which the tax credit will be calculated is $3,000.

Moreover, tax legislation will be amended so that the maximum amount of eligible work income on which the tax credit will be calculated for experienced workers aged 62 and over will be increased by $1,000 as of the 2018 taxation year. 

The table below shows how the tax credit for experienced workers will be adjusted as of the 2018 taxation year.

Maximum eligible work income based on age, for income over the first $5,000 (as of 2018) Age of experienced worker Maximum eligible work income 65 and over $11,000 64 $9,000 63 $7,000 62 $5,000 61 $3,000

For more information, see pages A.22 to A.27 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

To further encourage experienced workers to remain in the labour market, the age of eligibility for the tax credit will be lowered, as of the 2018 taxation year, to 61 years of age. For workers who are 61 years old, the maximum amount of eligible work income on which the tax credit will be calculated is $3,000.

Moreover, tax legislation will be amended so that the maximum amount of eligible work income on which the tax credit will be calculated for experienced workers aged 62 and over will be increased by $1,000 as of the 2018 taxation year. 

The table below shows how the tax credit for experienced workers will be adjusted as of the 2018 taxation year.

Maximum eligible work income based on age, for income over the first $5,000 (as of 2018) Age of experienced worker Maximum eligible work income 65 and over $11,000 64 $9,000 63 $7,000 62 $5,000 61 $3,000

For more information, see pages A.22 to A.27 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

The purpose of the tax shield is to offset a decrease in the following refundable work-incentive tax credits brought about by an increase in work income:

• the work premium;
• the adapted work premium (for individuals whose capacity for employment is severely limited); and
• the tax credit for childcare expenses.

As of the 2018 taxation year, the maximum increase in eligible work income relative to the previous year will be raised from $3,000 to $4,000 for each member of a household.

For more information, see page A.22 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

The purpose of the tax shield is to offset a decrease in the following refundable work-incentive tax credits brought about by an increase in work income:

• the work premium;
• the adapted work premium (for individuals whose capacity for employment is severely limited); and
• the tax credit for childcare expenses.

As of the 2018 taxation year, the maximum increase in eligible work income relative to the previous year will be raised from $3,000 to $4,000 for each member of a household.

For more information, see page A.22 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

Current tax legislation will be amended to recognize the support that seniors provide to their adult grandchildren or great-grandchildren during their studies. For any taxation year after 2017, individuals can claim the amount for persons living alone if, throughout the year (or part of the year before their death), they ordinarily lived in a self-contained domestic establishment they maintained themselves either alone or with a person under 18 or an eligible student of whom they were the father, mother, grandfather or grandmother, or great-grandfather or great-grandmother.

Note that the eligibility requirements for the additional amount for a person living alone (single-parent family) will remain unchanged—only the mother or father of an eligible student can claim the additional amount.

For more information, see pages A.38 to A.40 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

Current tax legislation will be amended to recognize the support that seniors provide to their adult grandchildren or great-grandchildren during their studies. For any taxation year after 2017, individuals can claim the amount for persons living alone if, throughout the year (or part of the year before their death), they ordinarily lived in a self-contained domestic establishment they maintained themselves either alone or with a person under 18 or an eligible student of whom they were the father, mother, grandfather or grandmother, or great-grandfather or great-grandmother.

Note that the eligibility requirements for the additional amount for a person living alone (single-parent family) will remain unchanged—only the mother or father of an eligible student can claim the additional amount.

For more information, see pages A.38 to A.40 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

Current tax legislation will be amended to recognize the support that seniors provide to their adult grandchildren or great-grandchildren during their studies. For any taxation year after 2017, individuals can claim the amount for persons living alone if, throughout the year (or part of the year before their death), they ordinarily lived in a self-contained domestic establishment they maintained themselves either alone or with a person under 18 or an eligible student of whom they were the father, mother, grandfather or grandmother, or great-grandfather or great-grandmother.

Note that the eligibility requirements for the additional amount for a person living alone (single-parent family) will remain unchanged—only the mother or father of an eligible student can claim the additional amount.

For more information, see pages A.38 to A.40 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

Current tax legislation will be amended to recognize the support that seniors provide to their adult grandchildren or great-grandchildren during their studies. For any taxation year after 2017, individuals can claim the amount for persons living alone if, throughout the year (or part of the year before their death), they ordinarily lived in a self-contained domestic establishment they maintained themselves either alone or with a person under 18 or an eligible student of whom they were the father, mother, grandfather or grandmother, or great-grandfather or great-grandmother.

Note that the eligibility requirements for the additional amount for a person living alone (single-parent family) will remain unchanged—only the mother or father of an eligible student can claim the additional amount.

For more information, see pages A.38 to A.40 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

The non-refundable tax credit for large cultural donations was created in 2013. It corresponds to 25% of a large cultural donation made by an individual (other than a trust) for the year. Though it can be claimed in addition to the tax credit for charitable donations and other gifts, it can only be claimed for one donation.

Given the increase in the number of large cultural donations since the tax credit was introduced, it will be extended five years. The tax legislation will therefore be amended to allow individuals to claim the non-refundable tax credit for a large cultural donation made before January 1, 2023.

For more information, see pages A.42 and A.43 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

The non-refundable tax credit for large cultural donations was created in 2013. It corresponds to 25% of a large cultural donation made by an individual (other than a trust) for the year. Though it can be claimed in addition to the tax credit for charitable donations and other gifts, it can only be claimed for one donation.

Given the increase in the number of large cultural donations since the tax credit was introduced, it will be extended five years. The tax legislation will therefore be amended to allow individuals to claim the non-refundable tax credit for a large cultural donation made before January 1, 2023.

For more information, see pages A.42 and A.43 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

The non-refundable tax credit for large cultural donations was created in 2013. It corresponds to 25% of a large cultural donation made by an individual (other than a trust) for the year. Though it can be claimed in addition to the tax credit for charitable donations and other gifts, it can only be claimed for one donation.

Given the increase in the number of large cultural donations since the tax credit was introduced, it will be extended five years. The tax legislation will therefore be amended to allow individuals to claim the non-refundable tax credit for a large cultural donation made before January 1, 2023.

For more information, see pages A.42 and A.43 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.