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Updated: 7 hours 21 min ago

Tobacco Tax Rate Increase

Tue, 03/12/2024 - 16:32

As part of the strategy for a tobacco-free Québec 2020-2025, the Ministère des Finances announced two successive $2 increases in the tobacco tax per carton of 200 cigarettes. The increases apply as follows:

  • At 12:01 a.m. on March 13, 2024, the tobacco tax on a carton of cigarettes will increase from $37.80 to $39.80.
  • At 12:01  a.m. on January 6, 2025, the tobacco tax on a carton of cigarettes will increase from $39.80 to $41.80.

The table below shows the changes to the tobacco tax rates.

Product

Rate in effect from February 9, 2023, through March 12, 2024

Rate in effect from March 13, 2024, through January 5, 2025

Rate in effect starting January 6, 2025

Cigarettes

$0.189 per cigarette

$0.199 per cigarette

$0.209 per cigarette

Loose tobacco

$0.189 per gram

$0.199 per gram

$0.209 per gram

Leaf tobacco

$0.189 per gram

$0.199 per gram

$0.209 per gram

Tobacco sticks, rolls or any other pre-rolled tobacco product designed for smoking

The higher of the following:

  • $0.189 per stick, roll or other pre-rolled tobacco product
  • $0.2907 per gram

The higher of the following:

  • $0.199 per stick, roll or other pre-rolled tobacco product
  • $0.3061 per gram

The higher of the following:

  • $0.209 per stick, roll or other pre-rolled tobacco product
  • $0.3215 per gram

Other tobacco products

$0.2907 per gram

$0.3061 per gram

$0.3215 per gram

The tobacco tax rate applicable to cigars (80% of the taxable price of each cigar) remains unchanged.

We will send retail vendors and collection officers that sell tobacco products a notice informing them of their obligations stemming from each increase, which includes completing form TAZ-7.12-V, Inventory of Tobacco Products in Stock.

For more information, see the 2024-2025 Budget Speech, available on the Ministère des Finances website.

Postponing the Application of the Rule Limiting Eligibility for the Non-Refundable Tax Credit For a Labour-Sponsored Fund

Tue, 03/05/2024 - 15:25

Currently, an individual who acquires, as first purchaser, qualifying class shares in the Fonds de solidarité des travailleurs du Québec (FTQ) or Fondaction can claim the tax credit for a labour-sponsored fund (conditions apply). The non-refundable tax credit is equal to 15% of the amount paid to acquire such shares in the year or in the first 60 days of the following year. The total amount of the shares acquired in a labour-sponsored fund that can be taken into account in calculating the tax credit for a year cannot be more than $5,000, for a maximum tax credit of $750.

In the budget speech of March 21, 2023, the government announced a rule limiting eligibility for the tax credit for a labour-sponsored fund to focus on assisting individuals with the greatest need for savings. As of the 2024 taxation year, an individual who acquires shares after December 31, 2023, would no longer be able to claim this tax credit for a taxation year if their taxable income for the reference year (the second calendar year preceding that taxation year) was subject to the highest tax rate in the personal income tax table.

However, so that labour-sponsored funds can attract more capital to increase their investments, particularly in housing construction, the rule limiting eligibility for the non-refundable tax credit for a labour-sponsored fund will not take effect until January 1, 2027. Thus, the rule will now apply when the tax credit is claimed for a taxation year after the 2026 taxation year in respect of shares acquired after December 31, 2026. Consequently, the taxable income for the 2025 taxation year will be used to determine the income limit for the 2027 taxation year.

For more information, see Information Bulletin 2024-3 (PDF – 219 KB) on the Ministère des Finances website.

Limits and Rates Related to the Use of an Automobile for 2024

Thu, 02/15/2024 - 08:30

The limits and rates used to determine deductible automobile expenses and calculate taxable benefits relating to the use of an automobile for 2024 are as follows:

  • The deductible limit for tax-exempt allowances paid by employers to employees is increased to $0.70/km for the first 5,000 kilometres travelled and $0.64/km for additional kilometres. For the Yukon, the Northwest Territories and Nunavut, the deductible limit for tax-exempt allowances paid by employers to employees is increased to $0.74/km for the first 5,000 kilometres travelled and $0.68/km for additional kilometres.
  • The prescribed amount used to determine the value of the taxable benefit an employee receives for the personal portion of the operating costs of an automobile provided by his or her employer remains at $0.33/km. For taxpayers whose main occupation is selling or leasing automobiles, the prescribed amount remains at $0.30/km.
  • The maximum capital cost of non-zero-emission passenger vehicles for capital cost allowance purposes is increased to $37,000 (before GST and QST) for vehicles purchased after 2023.
  • The maximum capital cost of eligible zero-emission passenger vehicles for capital cost allowance purposes remains at $61,000 (before GST and QST) for vehicles purchased after 2023. Eligible zero-emission passenger vehicles include plug-in hybrids with a battery capacity of at least 7 kWh and vehicles that are fully electric or fully powered by hydrogen.
  • The deductible limit for interest paid on amounts borrowed to purchase a passenger vehicle is increased to $350/month for loans related to vehicles purchased after 2023.
  • The deductible limit for leasing expenses is increased to $1050/month (before GST and QST) for leases entered into after 2023.

Extension of the Eligibility Period for the Refundable Cost of Living Tax Credit

Thu, 01/25/2024 - 00:00

The government has extended the period for receiving the refundable cost of living tax credit. The deadline for filing the 2021 income tax return and receiving the credit has been extended from June 30, 2023, to June 30, 2024.

Under the credit, which was first announced on November 9, 2022, eligible individuals could receive up to $600 or $400, depending on their net income. To receive it, eligible individuals had to file their 2021 income tax return by June 30, 2023.

If you already filed your 2021 income tax return by June 30, 2023, this new announcement does not concern you—if you were eligible for the tax credit, you already received it.

However, eligible individuals who filed their 2021 income tax return from July 1, 2023, to January 31, 2024, will receive the credit by February 29, 2024.

Likewise, eligible individuals who file their 2021 income tax return from February 1 to June 30, 2024, will receive the credit by September 30, 2024.

Moreover, eligible individuals who file their 2021 income tax return may also receive the one-time cost of living credit of up to $500 that was announced in the budget speech of March 22, 2022.

For more information, click Refundable Cost of Living Tax Credit or see information bulletin 2024-2 (PDF – 143 KB) on the Ministère des Finances website.

New Rule for the Non-Refundable Tax Credit for a Labour-Sponsored Fund

Tue, 01/09/2024 - 14:36

Currently, an individual who acquires, as first purchaser, qualifying class shares in the Fonds de solidarité des travailleurs du Québec (FTQ) or Fondaction can claim the tax credit for a labour-sponsored fund. Conditions apply. The non-refundable tax credit is equal to 15% of the amount paid to acquire such shares in the year or in the first 60 days of the following year. The total amount of the shares acquired in a labour-sponsored fund that can be taken into account in calculating the tax credit for a year cannot be more than $5,000, for a maximum tax credit of $750.

As of the 2024 taxation year, a new rule limiting access to the tax credit for shares acquired after December 31, 2023, is being introduced in order to refocus tax assistance on taxpayers with greater savings needs. More specifically, individuals whose taxable income for the base taxation year (the second calendar year preceding the taxation year for which the individual claims the tax credit) was subject to the highest tax rate of the personal income tax table will no longer be able to claim the tax credit.

Consequently, for the 2024 taxation year, the base year will be the 2022 taxation year. The maximum taxable income that can be taken into account for 2022 is $112,655. Therefore, only individuals whose taxable income for the 2022 taxation year did not exceed the $112,655 threshold will be able to claim the tax credit for a labour-sponsored fund for the 2024 taxation year. The ungranted amount of the tax credit cannot be carried forward.

Maximum income for the base year according to the taxation year for which the tax credit is being claimed

Taxation year

Maximum income for the base year

2024

The taxable income for 2022 cannot exceed $112,655.

2025

The taxable income for 2023 cannot exceed $119,910.

For more information, see Additional Information on the Fiscal Measures, Budget 2023-2024 (PDF – 1,418 Ko), on the Ministère des Finances website.

New Rule for Payments Over $10,000

Tue, 12/05/2023 - 14:01

As of January 1, 2024, individuals, corporations, partnerships and trusts must make payments of more than $10,000 to Revenu Québec electronically (for example, online or through a financial institution), unless electronic payment is impossible due to special circumstances.

This rule applies to payments of income tax, source deductions (including employer contributions) and instalment payments. Failure to comply may result in a penalty.

This new rule also applies to GST/HST and QST registrants. For more information, see the Tax News article entitled New Requirements for Paying Consumption Taxes and Filing Consumption Tax Returns Electronically.

Corporation Income Tax Requirements – Electronic Payments and Online Filing of Income Tax Returns

Tue, 12/05/2023 - 11:25
New requirement for payments of more than $10,000

As of January 1, 2024, corporations must make all payments of more than $10,000 electronically (for example, online or through a financial institution), unless electronic payment is impossible due to special circumstances. Failure to do so may result in a penalty.

Mandatory online filing of income tax returns

For taxation years beginning on or after January 1, 2024, corporations must file their income tax returns online, regardless of their gross revenue. For taxation years beginning before January 1, 2024, corporations are required to file their income tax returns online if their gross revenue exceeds $1 million.

Insurance companies, non-resident corporations, corporations that file their income tax returns in a functional currency (meaning not in Canadian dollars), and corporations that are tax-exempt under Title I of Book VIII of Part I of the Taxation Act are not covered by this requirement.

In addition, as of January 1, 2024, tax preparers who have more than five corporation income tax returns to file for the same taxation year must file them with us online.

Penalties may apply to corporations or tax preparers who fail to meet these obligations.

New Requirements for Paying Consumption Taxes and Filing Consumption Tax Returns Electronically

Mon, 12/04/2023 - 13:16

As of January 1, 2024, payments of $10,000 or more must be made to us electronically (previously, the limit was $50,000 or more). An electronic payment is a payment made through the online services of a financial institution or by any electronic means specified by the Minister. Note that we may impose a penalty on anyone who fails to make a payment electronically as required.

In addition, as of January 1, 2024, all GST/HST and QST registrants (except charities) will be required to file their consumption tax returns electronically, through either a financial institution or our website. Note that we may impose a penalty on anyone who fails to file electronically as required.

Lowered Threshold for Mandatory Online Filing of RL Slips

Mon, 12/04/2023 - 13:07

Effective January 1, 2024, the mandatory online filing threshold for RL slips is lowered from 51 to 6 for most types of RL slips.

Therefore, as of that date, if you file more than 5 RL slips of the same type for a calendar year (except RL-13 and RL-24 slips), you must file them online. You can use any of the following:

You may also choose to have a specialized business, such as an accounting firm or a payroll services provider, file your RL slips.

Under the Tax Administration Act, you are liable to penalties if you fail to use online filing when filing more than 5 RL slips of the same type (except RL-13 and RL-24 slips) after December 31, 2023.

The online filing threshold for RL-24 slips is unchanged at 51 slips.

Registering as a transmitter and getting a transmitter number

You must have a transmitter number (composed of the letters NP and six digits) to send RL-slip XML files online using software. To get a transmitter number, complete and file form ED-430-V, Transmitter Registration Form.

You do not have to get a transmitter number if you use the online services in My Account for businesses or the Prepare and View the RL-31 Slip online service.

Administrative Policy on Determining the Province of Employment for Québec Source Deductions and Employer Contributions

Tue, 11/14/2023 - 16:21

An employer must generally make source deductions and pay the employer contributions specified under Québec legislation regarding the salaries or wages it pays an employee if either of the following conditions is met:

  • The employee reports for work at an establishment of the employer located in Québec.
  • The employee is not required to report for work at an establishment of their employer (in Québec or elsewhere), and their salary or wages are paid from an establishment of the employer located in Québec.

As of January 1, 2024, if an employee does not physically report for work at an establishment of their employer, we consider that they are reporting for work at an establishment of their employer if they are “attached” to the establishment. An employee is attached to an establishment if both of the following conditions are met:

  • A temporary or permanent work agreement allows the employee to work full-time remotely from a location that is not an establishment of the employer (the employer and employee must be able to justify that such an agreement was made).
  • The employee is reasonably considered to be attached to an establishment of the employer (see indicators below).

This administrative policy applies to source deductions of Québec income tax, employee Québec Pension Plan (QPP) contributions and Québec parental insurance plan (QPIP) premiums as well as to employer contributions to the QPP, the QPIP, the health services fund, the Workforce Skills Development and Recognition Fund (WSDRF), and to the contribution related to labour standards.

For the purposes of this policy, “employee” means teleworkers as well as employees who never have to report for work at an establishment of their employer, such as travelling representatives.

This policy does not apply if the employee is not considered to be working full-time remotely or if they are not considered to be attached to an establishment of their employer.

Indicators for determining whether an employee can reasonably be considered to be attached to an establishment of their employer

The following indicators must be used to determine whether an employee can reasonably be considered to be attached to an establishment of their employer.

Primary indicator

If there is no full-time remote work agreement and the employee would have to physically report to work to carry out their employment duties at an establishment of their employer, we consider the employee to be attached to that establishment.

If an employee physically reported to an establishment of the employer immediately before entering a full-time remote work agreement, we consider them to be attached to that establishment, unless the employee's circumstances or the nature of their duties have changed.

Secondary indicators

If the primary indicator is not useful for determining whether an employee is attached to an establishment of their employer, the following indicators must be used to determine whether they can reasonably be considered to be attached to that establishment:

  • The employee attends or would attend in-person meetings at the establishment, through any type of communication.
  • The employee receives or would receive work-related material or equipment or associated instructions and assistance at the establishment.
  • The employee comes or would go in-person to the establishment to receive instructions from their employer regarding their duties, through any type of communication.
  • The employee is supervised from the establishment, as indicated in their employment contract.
  • The employee would report for work at the establishment based on the nature of their duties.

Generally, all the indicators need to be reviewed together in order to determine whether the employee is reasonably considered to be “attached to an establishment of the employer.” This determination cannot be used to avoid making Québec source deductions and paying Québec employer contributions.

More than one establishment of the employer

If an employee can be reasonably considered attached to more than one establishment of the employer, the same indicators should be used to determine to which establishment of the employer the employee can be reasonably considered as more closely attached to.

Example

An employee works as a systems analyst for an employer. The employer and employee have an agreement authorizing the employee to work from their residence in Ontario 100% of the time. We must determine whether the employee can reasonably be considered to be attached to an establishment of their employer.

Had there been no agreement authorizing full-time remote work, the employee would have to physically report for work at the establishment of their employer located in Québec to carry out their duties. We therefore consider that the employee is attached to that establishment. As a result, we consider that the employee reports for work at their employer's establishment in Québec. The employer must therefore make Québec source deductions and pay Québec employer contributions on the salary or wages paid to the employee.

Enhanced Shelter Allowance Program

Tue, 11/07/2023 - 12:16

In the economic and financial update released on November 7, 2023, the Minister of Finance of Québec announced an increase in the family income ceiling for the shelter allowance program. This will allow more low-income individuals who spend too much of their budget on housing to receive up to $170 per month in financial assistance. 

If you have already applied for the shelter allowance, we will review your application in light of the new ceiling. The amounts you are entitled to since October 1, 2023, will be paid to you automatically by the end of March 2024. You do not need to apply again.

If you may be eligible for the shelter allowance under the new criteria but you have not yet applied, keep an eye on our website as we will publish the information you will need to apply. We will also undertake an information campaign aimed at helping individuals get all the information they need to apply for the allowance.

For more information, see the Update on Québec's Economic and Financial Situation – Fall 2023 (PDF – 3,983 KB) on the Ministère des Finances website.

Increase in the Municipal Tax for 9-1-1 Service as of January 1, 2024

Fri, 10/27/2023 - 13:45

On June 7, 2023, a draft regulation amending the Regulation respecting the municipal tax for 9-1-1 service was published in the Gazette officielle du Québec. In it, the Quebec Minister of Municipal Affairs announced that the municipal tax for 9-1-1 service will increase from $0.46 to $0.52. This increase will apply as of January 1, 2024, and is designed to ensure the long-term funding of Quebec's 9-1-1 emergency centers.

In addition, as of January 1, 2025, the amount of the tax will be indexed each year according to the annual variation in the average consumer price index in Quebec, for the 12-month period ending on June 30 of the year preceding that for which the amount of the tax is to be indexed.

Thus, no later than September 30 of the year preceding the year for which the amount of the tax is to be indexed, the minister will publish the result of the indexation in Part 1 of the Gazette officielle du Québec.

Reduction in Québec Pension Plan Contributions for Workers 65 or Older

Tue, 10/10/2023 - 15:58

In the Budget Speech of March 21, 2023, the Minister of Finance announced that changes would be made to the Act respecting the Québec Pension Plan so that workers 65 or older can stop contributing to the Québec Pension Plan (QPP) and workers over 72 are no longer required to contribute to the plan.

Introduction of an option to stop paying QPP contributions for workers 65 or older

As of January 1, 2024, workers 65 or older can choose to stop contributing to the QPP, provided they receive a QPP or Canada Pension Plan (CPP) retirement pension. This measure will promote job retention and offer greater financial flexibility. However, for workers who make this election, the retirement pension supplement, an additional amount their QPP contributions entitle them to, will no longer be added to their QPP retirement pension.

For employees, the election to stop making QPP contributions must be made using the Election to Stop Contributing to the QPP, or Revocation of an Election (form RR-50-V), which must be given to the employer and to Revenu Québec. The form will soon be available on Revenu Québec's website. Note that the election will also apply to the employer.

For self-employed workers or workers responsible for a family-type resource or an intermediate resource, the election to stop making QPP contributions must be made when they file their income tax return for the year.

Note that the election cannot come into effect before January 1, 2024.

End of the obligation to contribute to the QPP for workers over 72

As of 2024, the obligation to contribute to the QPP will cease for workers over 72, for all workers subject to the contribution provided for by the Act respecting the Québec Pension Plan.

Specifically, the obligation to contribute to the QPP for workers will cease as of the year they turn 73. Consequently, all wages paid and earnings received as of January 1 of the year a worker turns 73 will no longer be subject to QPP contributions.

For more information, see the Budget 2023-2024 – Additional information document on the Minister of Finance website.

Source Deductions of Income Tax to Change On July 1, 2023

Mon, 05/15/2023 - 16:07

In the Budget Speech of March 21, 2023, the Minister of Finance announced a general income tax cut for individuals as of the 2023 taxation year. Changes will be made to source deductions of income tax on remuneration paid after June 30, 2023.

Consequently, the Source Deduction Table for Québec Income Tax (TP-1015.TI-V), the Formulas to Calculate Source Deductions and Contributions (guide TP-1015.F-V), the Guide for Employers (TP-1015.G-V), the Source Deductions Return (TP-1015.3-V) and the WebRAS calculation tool will be updated for 2023. Since the changes will apply only as of July 1, 2023, the income tax reduction for the first part of 2023 will generally be calculated when individuals file their 2023 income tax return.

Reduction of the tax rates for the first two taxable income brackets for individuals

As of 2023, the tax rates for the first two taxable income brackets will drop from:

  • 15% to 14% for taxable income up to $49,275;    
  • 20% to 19% for taxable income over $49,275 but not more than $98,540.
Changes to personal tax credits Decrease in the conversion rate

As of 2023, the conversion rate for the amounts used to calculate personal tax credits will decrease from 15% to 14%.

Increase in the amounts used to calculate some personal tax credits

As of 2023, the amounts shown in form TP-1015.3-V that are used to calculate some personal tax credits will be increased. The amount for other dependants will increase from $4,810 to $5,154, and the amount for a child under 18 enrolled in vocational training or post-secondary studies (per term) will increase from $3,301 to $3,537. Source deductions of income tax on remuneration paid after June 30, 2023, must take these changes into account.

Reduction of the fixed rates for some payments

Since the rates for the first two taxable income brackets for individuals will be reduced, the fixed rates used to calculate source deductions on some payments and remuneration will be changed as well. This includes the payments and remuneration listed below that are made after June 30, 2023

Single payment under a registered retirement income fund (RRIF) or a registered retirement savings plan (RRSP)

The rate for the part of a single payment under a RRIF that exceeds the minimum amount or for a single payment under an RRSP will decrease from 15% to 14%.

Other single payments

The rate for a single payment not exceeding $5,000 that does not come from a RRIF or an RRSP will decrease from 15% to 14%. If the payment exceeds $5,000, the rate will drop from 20% to 19%.

The single payments covered by the rate reduction are as follows:

  • retiring allowance payments;
  • certain payments from a registered education savings plan (RESP);
  • certain payments from a pension plan;
  • a payment made under a deferred profit-sharing plan;
  • a death benefit payment;
  • an amount paid to an employee or a former employee pursuant to an order or judgment, where part of the amount paid relates to a previous year.
Payment under a government work-incentive project

The rate for an earnings supplement payment under some government work-incentive projects will decrease from 15% to 14%.

Assistance payment under a registered disability savings plan (RDSP)

The rate for the taxable portion of an assistance payment under an RDSP that exceeds $20,998 for 2023 will decrease from 15% to 14%.

Bonuses, retroactive payments and similar lump-sum payments

The rate for bonuses or retroactive payments paid to an employee whose estimated annual remuneration (including the bonus or payment) does not exceed $17,183 for 2023 will decrease from 8% to 7%.

Remuneration of self-employed fishers

The rate applied to the remuneration of individuals who fish otherwise than under an employment contract and who elected to have income tax deducted at source from their remuneration will decrease from 15% to 14%.

Payment under a program to obtain information relating to tax non-compliance

The rate for a payment under a federal or provincial program to obtain information relating to tax non-compliance will decrease from 20% to 19%.

Special tax on accumulated investment income from a registered education savings plan (RESP)

The special tax deduction rate of 8% in Québec on the accumulated investment income from an RESP is maintained so that the combined (federal and Québec) tax rate of 20% continues to apply to Québec residents.

For more information, see Budget 2023-2024: Additional Information (PDF – 1,418 KB) on the Ministère des Finances website.

Specific Duty on New Tires to Increase on July 1, 2023

Fri, 05/12/2023 - 11:15

In the Budget Speech of March 21, 2023, the Minister of Finance of Québec announced that the specific duty on new tires would increase on July 1, 2023, in part to help ensure the continuity of the Programme québécois de gestion intégrée des pneus hors d'usage (integrated scrap tire management program) administered by the Société québécoise de récupération et de recyclage (RECYC-QUÉBEC).

Since the cost of processing scrap car and truck tires varies according to their diameter, the specific duty of $3 will be increased to better reflect that fact. Thus, as of July 1, 2023, the specific duty on new tires will be increased to $4.50 for car tires and $6 for truck tires. The method for collecting, reporting and remitting the specific duty will stay the same.

See the table below for the amount of the specific duty on each tire with a rim diameter of 62.23 cm (24.5 in) or less in relation to its overall diameter.

Amount of specific duty by overall tire diameter Overall tire diameter Specific duty per new tire Application date 83.82 cm (33 in) or less $4.50 July 1, 2023 Over 83.82 cm (33 in) but not exceeding 123.19 cm (48.5 in) $6.00 July 1, 2023 123.19 cm (48.5 in) or less $3.00 Until June 30, 2023

For more information, see Additional Information: Budget 2023-2024 (PDF – 1.38 MB) on the Ministère des Finances website and Tires and Road Vehicles Subject to the Duty.

Allègement relatif à l'incitatif à la passation en charges immédiate pour une société (in French Only)

Wed, 05/10/2023 - 16:22

Lors du discours sur le budget fédéral du 19 avril 2021, une mesure visant à accorder un incitatif temporaire à l'investissement par la passation en charges immédiate a été annoncée. Cette mesure permet à une société privée sous contrôle canadien (SPCC) de bénéficier d'une déduction pour amortissement pouvant atteindre 100 % du coût en capital de certains biens pour l'année où ils deviennent prêts à être mis en service. Ces biens doivent, entre autres, être acquis après le 18 avril 2021 et devenir prêts à être mis en service avant 2024. Le montant de la déduction pour amortissement que peut demander une SPCC pour une année d'imposition, pour l'ensemble de ses biens relatifs à la passation en charges immédiate désignés (BPCID) devenus prêts à être mis en service dans cette année d'imposition, ne peut pas dépasser un plafond de 1,5 million de dollars.

Le 30 juin 2021, le ministère des Finances du Québec a annoncé l'harmonisation de la législation fiscale québécoise avec cette mesure dans le bulletin d'information 2021-5. Le 7 avril 2022, le ministère des Finances du Canada a présenté un avis de motion de voies et moyens (incluant un avant-projet de loi) prévoyant la mise en œuvre de la mesure relative à la passation en charges immédiate. En juin 2022, Revenu Québec a publié le formulaire Déduction pour amortissement à l'égard de biens relatifs à la passation en charges immédiate (CO-130.AD), qui permet à une SPCC d'effectuer les calculs relatifs à cette mesure.

Il y a donc eu un délai entre le moment où l'annonce de la mesure a eu lieu et le moment où les premiers textes légaux et le formulaire CO-130.AD permettant à une société d'appliquer cette mesure ont été rendus publics. Pour cette raison, Revenu Québec permettra à une société de modifier le montant de la déduction pour amortissement demandé à l'égard des biens relatifs à la passation en charges immédiate qui ont fait l'objet d'une désignation pour une année d'imposition se terminant après le 18 avril 2021 et avant le 1er janvier 2022. Les sociétés ont jusqu'au 31 décembre 2023 pour demander une telle modification à Revenu Québec.

Notez que cet allègement ne s'applique pas à un particulier ni à une société de personnes, car ils peuvent bénéficier de cette mesure uniquement depuis le 1er janvier 2022.

General Reduction in Personal Income Tax as of the 2023 Taxation Year

Tue, 03/21/2023 - 16:00

In the budget speech on March 21, 2023, the Minister of Finance of Québec announced a decrease in the tax rates applicable to the first two taxable income brackets of the personal income tax table. As of the 2023 taxation year, the rates will decrease: 

  • from 15% to 14% for taxable income up to $49,275;
  • from 20% to 19% for taxable income over $49,275 but not exceeding $98,540.

So that individuals can benefit from this tax cut in the 2023 taxation year, adjustments will be made to the methods of calculating source deductions of income tax that must be made on salaries and wages and on certain other amounts paid after June 30, 2023.

Instalment payments

To account for the general tax reduction for the 2023 taxation year, individuals who must pay their income tax in instalments can adjust the amount of their payments due after March 15, 2023, according to the usual rules.

Changes to personal tax credits Decrease in the conversion rate

Starting the 2023 taxation year, the conversion rate for the amounts used to calculate personal tax credits will drop from 15% to 14%, which corresponds to the new rate applicable to the first taxable income bracket of the personal income tax table. 

Increase in amounts granted for the purpose of calculating certain personal tax credits

As of the 2023 taxation year, the amounts granted for the purpose of calculating the personal tax credits in the table below have been increased.

Type of amount Amount granted (before budget) Income tax reduction at 15% conversion rate (before budget) Amount granted (after budget) Income tax reduction at 14% conversion rate (after budget) Amount for a child under 18 enrolled in post-secondary studies (per term) $3,301 $495 $3,537 $495 Amount for other dependants $4,810 $722 $5,154 $722 Amount transferred by a child 18 or over enrolled in post-secondary studies $11,795 $1,769 $12,638 $1,769 Reduction in the amount transferred by a child 18 or over enrolled in post-secondary studies when only term has been completed $3,301 $495 $3,537 $495

For more information, see Additional Information on the 2023-2024 Budget (PDF – 1,566 KB) on the Ministère des Finances website.

Limits and Rates Related to the Use of an Automobile for 2023

Fri, 03/17/2023 - 14:40

The limits and rates used to determine deductible automobile expenses and calculate taxable benefits relating to the use of an automobile for 2023 are as follows:

  • The deductible limit for tax-exempt allowances paid by employers to employees is increased to $0.68/km for the first 5,000 kilometres travelled and $0.62/km for additional kilometres. For the Yukon, the Northwest Territories and Nunavut, the deductible limit for tax-exempt allowances paid by employers to employees is increased to $0.72/km for the first 5,000 kilometres travelled and $0.66/km for additional kilometres.
  • The prescribed amount used to determine the value of the taxable benefit an employee receives for the personal portion of the operating costs of an automobile provided by his or her employer is increased to $0.33/km. For taxpayers whose main occupation is selling or leasing automobiles, the prescribed amount is increased to $0.30/km.
  • The maximum capital cost of non zero-emission passenger vehicles for capital cost allowance purposes is increased to $36,000 (before GST and QST) for vehicles purchased after 2022.
  • The maximum capital cost of eligible zero-emission passenger vehicles for capital cost allowance purposes is increased to $61,000 (before GST and QST) for vehicles purchased after 2022. Eligible zero-emission passenger vehicles include plug-in hybrids with a battery capacity of at least 7 kWh and vehicles that are fully electric or fully powered by hydrogen.
  • The deductible limit for interest paid on amounts borrowed to purchase a passenger vehicle remains $300/month for loans related to vehicles purchased after 2022.
  • The deductible limit for leasing expenses is increased to $950/month (before GST and QST) for leases entered into after 2022.

Tobacco Tax Rate Increase

Wed, 02/08/2023 - 05:12

As part of the strategy for a tobacco-free Québec 2020-2025, the Ministère des Finances announced an increase in the tobacco tax from $29.80 to $37.80 per carton of 200 cigarettes. This $8 increase takes effect at 12:01 a.m. on February 9, 2023.

The table below shows the changes to the tobacco tax rates.

Product Rate in effect until February 8, 2023 Rate in effect starting February 9, 2023 Cigarettes $0.149 per cigarette $0.189 per cigarette Loose tobacco $0.149 per gram $0.189 per gram Leaf tobacco $0.149 per gram $0.189 per gram Tobacco sticks, rolls or other pre-rolled tobacco product

The higher of the following:

  • $0.149 per stick, roll or other pre-rolled tobacco product
  • $0.2292 per gram

The higher of the following:

  • $0.189 per stick, roll or other pre-rolled tobacco product
  • $0.2907 per gram
Other tobacco products $0.2292 per gram $0.2907 per gram

The tobacco tax rate applicable to cigars remains unchanged.

We will send retail vendors and collection officers that sell tobacco products a notice informing them of their obligations stemming from this increase, which includes completing form TAZ-7.12-V, Inventory of Tobacco Products in Stock.

For more information, see information bulletin 2023-2, available on the Ministère des Finances website.

New Rule on Flipping a Property (Home or Rental Property)

Tue, 01/10/2023 - 09:51

Since January 1, 2023, the profit from flipping residential property (including rental property or a purchase option) you held for fewer than 365 consecutive days is fully taxable as business income. As a result, you are not eligible for the 50% capital gains inclusion rate or the principal residence exemption.

Situations when the rule does not apply

This rule does not apply if the property is sold due to one or more of the following life events:

  • You or a related person dies.
  • A related person joins your household (birth of child, adoption, or care of elderly parent) or you join a related person's household.
  • Your marriage or common-law partnership breaks down (if you were living apart from your spouse for at least 90 days prior to the property's sale).  
  • Your personal safety or a related person's personal safety is threatened (e.g. domestic violence).
  • You or a related person has a disability or serious illness.
  • You or your spouse or common-law partner works at a new location and your new residence is at least 40 km closer to the new work location.
  • Your or your spouse's or common-law partner's employment is involuntarily terminated.
  • You are insolvent.
  • Your property is destroyed (e.g. natural disaster) or expropriated.

Even if the new rule does not apply because of the above events or because you held the property for fewer than 365 consecutive days, the profit may still be fully taxable if it is determined to be business income or a capital gain.

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