Revenu Québec Infos

The additional capital cost allowance of 35% introduced in March 2017 has been replaced by an additional capital cost allowance of 60%.

Like the 35% one, the additional capital cost allowance of 60% covers a two-year period and applies to manufacturing or processing equipment and general-purpose electronic data processing equipment.

Tax legislation will be amended to allow taxpayers to deduct, in the calculation of their business income for a taxation year, an amount corresponding to the additional capital cost allowance of 60% in respect of qualified property for that taxation year. This additional amount will be granted for the taxation year in which the qualified property is first put to use and the following year.

Qualified property

The additional capital cost allowance of 60% applies in respect of:

• property that is a machine or equipment acquired primarily for use in the manufacturing and processing goods intended for sale or lease (property in Class 53 in Schedule B to the Regulation respecting the Taxation Act); and
• general-purpose electronic data processing equipment and systems software for that equipment (property included in Class 50 in Schedule B to the Regulation respecting the Taxation Act).

The property must be new at the time of its acquisition and be acquired after March 27, 2018, but before April 1, 2020. Moreover, it must be:

• put to use within a reasonable time of its acquisition;
• used by a taxpayer mainly in the course of carrying on a business for a period of 730 consecutive days following the day it is first put to use (except in the case of loss, involuntary destruction by fire, theft or water, or a major breakdown); and
• used mainly in Québec by the taxpayer throughout that period.

Calculating the additional capital cost allowance

The additional capital cost allowance of 60% is calculated according to the same rules as the additional capital cost allowance of 35%.

Special tax

A taxpayer that claims the additional capital cost allowance in respect of qualified property and that does not use the property mainly in the course of carrying on a business for a period of at least 730 consecutive days after the property was first put to use or that does not use the property mainly in Québec during that period may have to pay a special tax.

Additional capital cost allowance of 35%

The additional capital cost allowance of 60% replaces the additional capital cost allowance of 35%, which was eliminated on March 28, 2018.

For more information, see pages A.63 and A.66 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

Tax legislation will be amended to remove the limit on the amount that can be claimed under the refundable tax credit for film dubbing, which corresponds to 45% of the consideration paid to corporations for the performance of the dubbing contract. This will simplify the application of the tax credit and boost support for dubbing activities carried out in Québec.

The amendment will apply to a qualified film dubbing expenditure of a corporation for a taxation year that begins after March 27, 2018.

For more information, see pages A.85 and A.86 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

Tax legislation will be amended to remove the limit on the amount that can be claimed under the refundable tax credit for film dubbing, which corresponds to 45% of the consideration paid to corporations for the performance of the dubbing contract. This will simplify the application of the tax credit and boost support for dubbing activities carried out in Québec.

The amendment will apply to a qualified film dubbing expenditure of a corporation for a taxation year that begins after March 27, 2018.

For more information, see pages A.85 and A.86 of the 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 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.