Revenu Québec Infos

An additional capital cost allowance has been introduced for businesses that acquire manufacturing or processing equipment and computer equipment before April 1, 2019.

Qualified property

The additional capital cost allowance applies in respect of property that consists in:

• general-purpose electronic data processing equipment and systems software for that equipment;
• machinery and equipment acquired mainly with a view to using them for manufacturing and processing goods intended for sale or lease.

Qualified property must be put to use within a reasonable time of its acquisition and be used by the taxpayer mainly in the course of carrying on a business during a period of 730 consecutive days following the day it is first put to use. It must also be used mainly in Québec throughout the 730-day period.

Lastly, the property must be new at the time of its acquisition and be acquired by the taxpayer after March 28, 2017, but before April 1, 2019.

Additional capital cost allowance

For a given taxation year, the base amount of the allowance corresponds to 35% of the amount the taxpayer deducted, in calculating the taxpayer's income for the year, as depreciation in respect of the capital cost allowance class to which the taxpayer's qualified property belongs.

The amount that the taxpayer can deduct in calculating income for a taxation year on account of the additional capital cost allowance corresponds to the product of the base amount of the allowance for the year and the fraction of the undepreciated capital cost (UCC) of property of the capital cost allowance class attributable to the qualified property.

For the taxation year in which the qualified property is first put to use, the fraction of UCC attributable to the qualified property corresponds to the proportion represented by the ratio between one half of the acquisition cost of that property and the UCC used in calculating the capital cost allowance for the year.

For the taxation year following the taxation year in which the qualified property is first put to use, the fraction of UCC attributable to the qualified property will correspond to the proportion represented by the ratio between the depreciation balance attributable to the qualified property and the UCC used in calculating the capital cost allowance for the year.

In this respect, the depreciation balance attributable to the qualified property means the amount by which the cost of the qualified property exceeds the part of the capital cost allowance amount that the taxpayer deducted in calculating the previous year's income and that is proportionately attributable to the qualified property.

The taxpayer may have to pay a special tax if the property is not used mainly in Québec throughout the 730-day period.

The changes came into effect on March 28, 2017, and apply to property acquired after this date but before April 1, 2019.

For more information, see pages A.35 to A.37 of the Additional Information 2017-2018 (PDF – 2.71 MB), which is published by the Ministère des Finances.

Postponement of the time limit for applying for an initial qualification certificate

To claim the tax holiday (income tax and health services fund contribution) for large investment projects, a corporation must, among other things, file an application for an initial qualification certificate in respect of its investment project before the carrying out of the project begins but no later than November 20, 2017. However, the November 20, 2017, deadline has now been extended to December 31, 2020.

This amendment will apply to large investment projects in relation to which an application for an initial qualification certificate is filed after March 28, 2017.

Introduction of an election enabling an additional phase to be added to a large investment project

A new election has been introduced to allow two large investment projects carried out by a corporation to be considered together. In this context, changes have been made to the tax holiday to reflect this reality and have applied since March 29, 2017.

For more information, see pages A.30 to A.36 of the Additional Information 2017-2018 (PDF – 2.71 MB), published by the Ministère des Finances.

Postponement of the time limit for applying for an initial qualification certificate

To claim the tax holiday (income tax and health services fund contribution) for large investment projects, a corporation must, among other things, file an application for an initial qualification certificate in respect of its investment project before the carrying out of the project begins but no later than November 20, 2017. However, the November 20, 2017, deadline has now been extended to December 31, 2020.

This amendment will apply to large investment projects in relation to which an application for an initial qualification certificate is filed after March 28, 2017.

Introduction of an election enabling an additional phase to be added to a large investment project

A new election has been introduced to allow two large investment projects carried out by a corporation to be considered together. In this context, changes have been made to the tax holiday to reflect this reality and have applied since March 29, 2017.

For more information, see pages A.30 to A.36 of the Additional Information 2017-2018 (PDF – 2.71 MB), published by the Ministère des Finances.

Postponement of the time limit for applying for an initial qualification certificate

To claim the tax holiday (income tax and health services fund contribution) for large investment projects, a corporation must, among other things, file an application for an initial qualification certificate in respect of its investment project before the carrying out of the project begins but no later than November 20, 2017. However, the November 20, 2017, deadline has now been extended to December 31, 2020.

This amendment will apply to large investment projects in relation to which an application for an initial qualification certificate is filed after March 28, 2017.

Introduction of an election enabling an additional phase to be added to a large investment project

A new election has been introduced to allow two large investment projects carried out by a corporation to be considered together. In this context, changes have been made to the tax holiday to reflect this reality and have applied since March 29, 2017.

For more information, see pages A.30 to A.36 of the Additional Information 2017-2018 (PDF – 2.71 MB), published by the Ministère des Finances.

Postponement of the time limit for applying for an initial qualification certificate

To claim the tax holiday (income tax and health services fund contribution) for large investment projects, a corporation must, among other things, file an application for an initial qualification certificate in respect of its investment project before the carrying out of the project begins but no later than November 20, 2017. However, the November 20, 2017, deadline has now been extended to December 31, 2020.

This amendment will apply to large investment projects in relation to which an application for an initial qualification certificate is filed after March 28, 2017.

Introduction of an election enabling an additional phase to be added to a large investment project

A new election has been introduced to allow two large investment projects carried out by a corporation to be considered together. In this context, changes have been made to the tax holiday to reflect this reality and have applied since March 29, 2017.

For more information, see pages A.30 to A.36 of the Additional Information 2017-2018 (PDF – 2.71 MB), published by the Ministère des Finances.

Postponement of the time limit for applying for an initial qualification certificate

To claim the tax holiday (income tax and health services fund contribution) for large investment projects, a corporation must, among other things, file an application for an initial qualification certificate in respect of its investment project before the carrying out of the project begins but no later than November 20, 2017. However, the November 20, 2017, deadline has now been extended to December 31, 2020. 

This amendment will apply to large investment projects in relation to which an application for an initial qualification certificate is filed after March 28, 2017. 

Introduction of an election enabling an additional phase to be added to a large investment project

A new election has been introduced to allow two large investment projects carried out by a corporation to be considered together. In this context, changes have been made to the tax holiday to reflect this reality and have applied since March 29, 2017. 

For more information, see pages A.30 to A.36 of the Additional Information 2017-2018 (PDF – 2.71 MB), published by the Ministère des Finances.

The maximum share of Fondaction's net assets that may be allocated to major investments for the purposes of its investment requirement to a particular fiscal year set at 10% of its net assets at the end of the preceding fiscal year must be calculated without taking into account major investments in social economy enterprises, within the meaning of the Social Economy Act.

This change applies to any fiscal year of Fondaction beginning after May 31, 2016.

For more information, see pages A.55 and A.56 of the Additional Information 2017-2018 (PDF – 2.71 MB) published by the Ministère des Finances.

The maximum share of Fondaction's net assets that may be allocated to major investments for the purposes of its investment requirement to a particular fiscal year set at 10% of its net assets at the end of the preceding fiscal year must be calculated without taking into account major investments in social economy enterprises, within the meaning of the Social Economy Act.

This change applies to any fiscal year of Fondaction beginning after May 31, 2016.

For more information, see pages A.55 and A.56 of the Additional Information 2017-2018 (PDF – 2.71 MB) published by the Ministère des Finances.

The maximum share of Fondaction's net assets that may be allocated to major investments for the purposes of its investment requirement to a particular fiscal year set at 10% of its net assets at the end of the preceding fiscal year must be calculated without taking into account major investments in social economy enterprises, within the meaning of the Social Economy Act.

This change applies to any fiscal year of Fondaction beginning after May 31, 2016.

For more information, see pages A.55 and A.56 of the Additional Information 2017-2018 (PDF – 2.71 MB) published by the Ministère des Finances.

The maximum share of Fondaction's net assets that may be allocated to major investments for the purposes of its investment requirement to a particular fiscal year set at 10% of its net assets at the end of the preceding fiscal year must be calculated without taking into account major investments in social economy enterprises, within the meaning of the Social Economy Act.

This change applies to any fiscal year of Fondaction beginning after May 31, 2016.

For more information, see pages A.55 and A.56 of the Additional Information 2017-2018 (PDF – 2.71 MB) published by the Ministère des Finances.

As a rule, Revenu Québec must receive annual GST and QST returns and remittances no later than three months after the end of the reporting period.

The time limit changes, however, for individuals who are GST and QST registrants and

• who earn business income (other than property income) for income tax purposes;
• who have an annual reporting period; and
• whose fiscal year ends on December 31.

Individuals in the situation described above have until June 15 of the following year to file their returns.

Note, however, that they must make remittances of any GST and QST payable no later than April 30.

Important note

This year, individuals have until May 1, 2017, to make remittances of any GST and QST payable, since the usual deadline, April 30, falls on a Sunday.

As a rule, Revenu Québec must receive annual GST and QST returns and remittances no later than three months after the end of the reporting period.

The time limit changes, however, for individuals who are GST and QST registrants and

• who earn business income (other than property income) for income tax purposes;
• who have an annual reporting period; and
• whose fiscal year ends on December 31.

Individuals in the situation described above have until June 15 of the following year to file their returns.

Note, however, that they must make remittances of any GST and QST payable no later than April 30.

Important note

This year, individuals have until May 1, 2017, to make remittances of any GST and QST payable, since the usual deadline, April 30, falls on a Sunday.

As a rule, Revenu Québec must receive annual GST and QST returns and remittances no later than three months after the end of the reporting period.

The time limit changes, however, for individuals who are GST and QST registrants and

• who earn business income (other than property income) for income tax purposes;
• who have an annual reporting period; and
• whose fiscal year ends on December 31.

Individuals in the situation described above have until June 15 of the following year to file their returns.

Note, however, that they must make remittances of any GST and QST payable no later than April 30.

Important note

This year, individuals have until May 1, 2017, to make remittances of any GST and QST payable, since the usual deadline, April 30, falls on a Sunday.

As a rule, Revenu Québec must receive annual GST and QST returns and remittances no later than three months after the end of the reporting period.

The time limit changes, however, for individuals who are GST and QST registrants and

• who earn business income (other than property income) for income tax purposes;
• who have an annual reporting period; and
• whose fiscal year ends on December 31.

Individuals in the situation described above have until June 15 of the following year to file their returns.

Note, however, that they must make remittances of any GST and QST payable no later than April 30.

Important note

This year, individuals have until May 1, 2017, to make remittances of any GST and QST payable, since the usual deadline, April 30, falls on a Sunday.

As a rule, Revenu Québec must receive annual GST and QST returns and remittances no later than three months after the end of the reporting period.

The time limit changes, however, for individuals who are GST and QST registrants and

• who earn business income (other than property income) for income tax purposes;
• who have an annual reporting period; and
• whose fiscal year ends on December 31.

Individuals in the situation described above have until June 15 of the following year to file their returns.

Note, however, that they must make remittances of any GST and QST payable no later than April 30.

Important note

This year, individuals have until May 1, 2017, to make remittances of any GST and QST payable, since the usual deadline, April 30, falls on a Sunday.

As a rule, Revenu Québec must receive annual GST and QST returns and remittances no later than three months after the end of the reporting period.

The time limit changes, however, for individuals who are GST and QST registrants and

• who earn business income (other than property income) for income tax purposes;
• who have an annual reporting period; and
• whose fiscal year ends on December 31.

Individuals in the situation described above have until June 15 of the following year to file their returns.

Note, however, that they must make remittances of any GST and QST payable no later than April 30.

Important note

This year, individuals have until May 1, 2017, to make remittances of any GST and QST payable, since the usual deadline, April 30, falls on a Sunday.

In the Budget Speech delivered on March 28, 2017, Québec's Finance Minister announced that the health contribution would be eliminated retroactively for low- and middle-income taxpayers. As a result, individuals whose net income (line 275 of the income tax return) is $134,095 or less no longer have to pay the health contribution. Individuals whose net income is greater than $134,095 must pay a health contribution equal to 4% of the portion of their net income that exceeds that amount—the $175 minimum contribution has been eliminated, while the $1,000 maximum contribution remains unchanged.

Revenu Québec will correct the 2016 income tax returns of individuals affected by the change by adjusting the refund or balance due and, where necessary, will issue new notices of assessment.

If you have already filed your income tax return, you do not need to send us a new one.

In the Budget Speech delivered on March 28, 2017, Québec's Finance Minister announced that the health contribution would be eliminated retroactively for low- and middle-income taxpayers. As a result, individuals whose net income (line 275 of the income tax return) is $134,095 or less no longer have to pay the health contribution. Individuals whose net income is greater than $134,095 must pay a health contribution equal to 4% of the portion of their net income that exceeds that amount—the $175 minimum contribution has been eliminated, while the $1,000 maximum contribution remains unchanged.

Revenu Québec will correct the 2016 income tax returns of individuals affected by the change by adjusting the refund or balance due and, where necessary, will issue new notices of assessment.

If you have already filed your income tax return, you do not need to send us a new one.

In the Budget Speech delivered on March 28, 2017, Québec's Finance Minister announced that the health contribution would be eliminated retroactively for low- and middle-income taxpayers. As a result, individuals whose net income (line 275 of the income tax return) is $134,095 or less no longer have to pay the health contribution. Individuals whose net income is greater than $134,095 must pay a health contribution equal to 4% of the portion of their net income that exceeds that amount—the $175 minimum contribution has been eliminated, while the $1,000 maximum contribution remains unchanged.

Revenu Québec will correct the 2016 income tax returns of individuals affected by the change by adjusting the refund or balance due and, where necessary, will issue new notices of assessment.

If you have already filed your income tax return, you do not need to send us a new one.

In the Budget Speech delivered on March 28, 2017, Québec's Finance Minister announced that the health contribution would be eliminated retroactively for low- and middle-income taxpayers. As a result, individuals whose net income (line 275 of the income tax return) is $134,095 or less no longer have to pay the health contribution. Individuals whose net income is greater than $134,095 must pay a health contribution equal to 4% of the portion of their net income that exceeds that amount—the $175 minimum contribution has been eliminated, while the $1,000 maximum contribution remains unchanged.

Revenu Québec will correct the 2016 income tax returns of individuals affected by the change by adjusting the refund or balance due and, where necessary, will issue new notices of assessment.

If you have already filed your income tax return, you do not need to send us a new one.