Revenu Québec Infos

Several changes will be made to the tax credit for workers 65 or older as of the 2016 taxation year.

The changes will:

• lower the age of eligibility for the tax credit from 65 to 63 over a period of two years
• gradually increase the maximum amount of eligible work income on which the tax credit is calculated until it reaches $10,000 for all workers 65 or older, and
• make the tax credit reducible based on work income

For more information, see pages A.6 to A.12 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

Starting in 2016, the age at which you become eligible for the age amount will gradually be raised until it reaches 70. For 2020 and all subsequent taxation years, the eligibility age will remain 70.

For more information, see page A.16 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

Fiscal legislation will be amended to raise both the base rates and the increased rates of the tax credit for an on-the-job training period such that

• the base rate will increase from 24% to 40% where the eligible taxpayer is a corporation, and from 12% to 20% where the eligible taxpayer is an individual;
• the increased rate will increase from 32% to 50% where the eligible trainee is a person with a disability, and from 16% to 25% where the eligible trainee is an immigrant.

An eligible taxpayer in a given taxation year will be able to take advantage of the increase in the tax credit rates where the following conditions are met:

• the eligible trainee is a student trainee;
• the taxation year is at least the third consecutive taxation year for which the taxpayer is entitled to the tax credit in respect of a student trainee (or, if the taxpayer claiming the tax credit is doing so as a member of a qualified partnership, the fiscal period of the partnership ending in the taxation year is at least the third consecutive fiscal period for which the partnership incurred a qualified expenditure in respect of a student trainee);
• a qualified expenditure of the eligible taxpayer or the eligible partnership of which the taxpayer is a member, as the case may be, incurred in respect of a student trainee reached $2,500 for each of the three consecutive taxation years or more, or for each of the three consecutive fiscal periods or more, referred to in the previous paragraph.

These amendments will apply in respect of a qualified expenditure incurred after March 26, 2015, relative to an eligible training period beginning after that date.

For more information, see pages A.51 to A.52 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB) published by the Ministère des Finances.

Since June 4, 2014, Investissement Québec has not been able to accept applications for a certificate in connection with an information technology (IT) integration contract for purposes of the above-mentioned tax credit (referred to in the Budget Speech as the refundable tax credit for the integration of IT in manufacturing SMBs). The Act respecting the sectoral parameters of certain fiscal measures will be amended so that Investissement Québec can accept such applications filed after March 26, 2015, and before January 1, 2020.

Two-year extension of the tax credit

Tax legislation will be amended to extend for two years the tax credit relating to information technologies in small and medium-sized manufacturing businesses.

Reduction of the level of assistance

Furthermore, the tax credit rate, for a taxation year, will be 20% for a qualified corporation whose paid-up capital for the year is $15 million or less. The rate will be reduced linearly and reach zero for any qualified corporation whose paid-up capital for the year is $20 million or more.

Eligibility of primary sector corporations

In addition, tax legislation will be amended so that the term "qualified manufacturing or private sector corporation" means, for a taxation year, a qualified corporation whose proportion of manufacturing or processing activities and primary sector activities for the taxation year is more than 50%.

Activities attributable to agriculture, forestry, fishing, hunting, mining, quarrying, and oil and gas extraction will be considered primary sector activities.

Effective date

These amendments will apply to expenditures relating to the supply of a qualified management software package that are incurred after March 26, 2015, and before January 1, 2020, under an IT integration contract the negotiation of which began after March 26, 2015, and before January 1, 2020, and in respect of which Investissement Québec has issued a certificate.

For more information, see pages A.53 to A.56 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

For purposes of the goods and services tax (GST) and the Québec sales tax (QST), certain persons may jointly elect to have the taxable supplies made between them (with certain exceptions) deemed to have been made for no consideration.

Effective January 1, 2015, persons that wish to make such an election must complete form FP-4616-V, Election or Revocation of an Election to Have Certain Taxable Supplies Made Between Specified Members Deemed Made for No Consideration, and send it to us on or before the earliest of the dates by which the members making the election must file their GST and QST returns for the period that includes the effective date of the election. Previously, the election form did not have to be sent to Revenu Québec.

A group of more than two persons that wishes to make such an election between all members of the group can complete a single copy of form FP-4616-V. Only one member of the group has to sign the election form and send it to Revenu Québec.

Election already in effect before January 1, 2015

Persons whose election was in effect before January 1, 2015, that would like the election to remain in effect must make the election again, by completing form FP-4616-V and sending it to us before January 1, 2016. Neither the original election nor its effective date will change.

Where the effective dates of the elections made by members of a group of more than two persons are different, the group may

• complete a separate copy of form FP-4616-V for each effective date and send all copies of the form to us, or
• complete a single copy of form FP-4616-V, entering the effective date of December 31, 2014, and send it to us.

If the group chooses the second option, each member of the group must keep in its accounting records the copy of either form FP-25-V, form VD-336-V or form FP-2025-V that was previously completed and shows the original date of the election.

For purposes of the goods and services tax (GST) and the Québec sales tax (QST), certain persons may jointly elect to have the taxable supplies made between them (with certain exceptions) deemed to have been made for no consideration.

Effective January 1, 2015, persons that wish to make such an election must complete form FP-4616-V, Election or Revocation of an Election to Have Certain Taxable Supplies Made Between Specified Members Deemed Made for No Consideration, and send it to us on or before the earliest of the dates by which the members making the election must file their GST and QST returns for the period that includes the effective date of the election. Previously, the election form did not have to be sent to Revenu Québec.

A group of more than two persons that wishes to make such an election between all members of the group can complete a single copy of form FP-4616-V. Only one member of the group has to sign the election form and send it to Revenu Québec.

Election already in effect before January 1, 2015

Persons whose election was in effect before January 1, 2015, that would like the election to remain in effect must make the election again, by completing form FP-4616-V and sending it to us before January 1, 2016. Neither the original election nor its effective date will change.

Where the effective dates of the elections made by members of a group of more than two persons are different, the group may

• complete a separate copy of form FP-4616-V for each effective date and send all copies of the form to us, or
• complete a single copy of form FP-4616-V, entering the effective date of December 31, 2014, and send it to us.

If the group chooses the second option, each member of the group must keep in its accounting records the copy of either form FP-25-V, form VD-336-V or form FP-2025-V that was previously completed and shows the original date of the election.

For purposes of the goods and services tax (GST) and the Québec sales tax (QST), certain persons may jointly elect to have the taxable supplies made between them (with certain exceptions) deemed to have been made for no consideration.

Effective January 1, 2015, persons that wish to make such an election must complete form FP-4616-V, Election or Revocation of an Election to Have Certain Taxable Supplies Made Between Specified Members Deemed Made for No Consideration, and send it to us on or before the earliest of the dates by which the members making the election must file their GST and QST returns for the period that includes the effective date of the election. Previously, the election form did not have to be sent to Revenu Québec.

A group of more than two persons that wishes to make such an election between all members of the group can complete a single copy of form FP-4616-V. Only one member of the group has to sign the election form and send it to Revenu Québec.

Election already in effect before January 1, 2015

Persons whose election was in effect before January 1, 2015, that would like the election to remain in effect must make the election again, by completing form FP-4616-V and sending it to us before January 1, 2016. Neither the original election nor its effective date will change.

Where the effective dates of the elections made by members of a group of more than two persons are different, the group may

• complete a separate copy of form FP-4616-V for each effective date and send all copies of the form to us, or
• complete a single copy of form FP-4616-V, entering the effective date of December 31, 2014, and send it to us.

If the group chooses the second option, each member of the group must keep in its accounting records the copy of either form FP-25-V, form VD-336-V or form FP-2025-V that was previously completed and shows the original date of the election.

Tax legislation will be amended to make changes to the above-mentioned tax credit (referred to in the Budget Speech as the tax credit for investments relating to manufacturing and processing equipment).

Rate adjustments

Tax legislation will be amended to reduce, by 8%, the increased rate of the tax credit for investment that applies in respect of qualified property acquired for use primarily in

• a remote zone;
• the eastern part of the Bas-Saint-Laurent administrative region; or
• an intermediate zone.

Therefore, the maximum rate of the tax credit that a qualified corporation may claim in respect of qualified property acquired for use primarily in a remote zone will be 24% (the 4% base rate plus a 20% increase in the base rate).

Furthermore, the maximum rate of the tax credit that a qualified corporation may claim in respect of qualified property acquired for use primarily in the eastern part of the Bas-Saint-Laurent administrative region will be 16% (the 4% base rate plus a 12% increase in the base rate).

Likewise, the maximum rate of the tax credit that a qualified corporation may claim in respect of qualified property acquired for use primarily in an intermediate zone will be 8% (the 4% base rate plus a 4% increase in the base rate).

Finally, in view of the 8% reduction in tax assistance, a qualified corporation will no longer be able to claim the tax credit for investment in respect of eligible expenses incurred in another region.

These amendments to tax legislation will apply in respect of eligible expenses incurred after December 31, 2016.

Extension of the tax credit for investment and change in the definition of the term "qualified property" 

Tax legislation will be amended to extend by five years the period in which property must be acquired in order to be considered qualified property for purposes of the tax credit for investment. Thus, property may be considered qualified property if it is acquired before January 1, 2023.

The definition of the term "qualified property" will also be changed so that property acquired after December 31, 2016 (other than property acquired for use primarily in a remote zone, the eastern part of the Bas-Saint-Laurent administrative region or an intermediate zone) will not be considered qualified property for purposes of the tax credit for investment.

For more information, see pages A.48 to A.51 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

The rate of the tax credit for the acquisition of shares issued by Fondaction is changing to 20% for all class A and class B shares acquired after May 31, 2015, and before June 1, 2016. This means that, if an employee has authorized you to withhold an amount from his or her remuneration for the purchase, after May 31, 2015, and before June 1, 2016, of class A or class B shares issued by Fondaction, you must adjust the calculation of that employee's source deductions of income tax.

For more information, refer to document PZ-972-V, Temporary Change in the Rate of the Tax Credit for the Acquisition of Shares Issued by Fondaction.

The rate of the tax credit for the acquisition of shares issued by Fondaction is changing to 20% for all class A and class B shares acquired after May 31, 2015, and before June 1, 2016. This means that, if an employee has authorized you to withhold an amount from his or her remuneration for the purchase, after May 31, 2015, and before June 1, 2016, of class A or class B shares issued by Fondaction, you must adjust the calculation of that employee's source deductions of income tax.

For more information, refer to document PZ-972-V, Temporary Change in the Rate of the Tax Credit for the Acquisition of Shares Issued by Fondaction.

The rate of the tax credit for the acquisition of shares issued by Fondaction is changing to 20% for all class A and class B shares acquired after May 31, 2015, and before June 1, 2016. This means that, if an employee has authorized you to withhold an amount from his or her remuneration for the purchase, after May 31, 2015, and before June 1, 2016, of class A or class B shares issued by Fondaction, you must adjust the calculation of that employee's source deductions of income tax.

For more information, refer to document PZ-972-V, Temporary Change in the Rate of the Tax Credit for the Acquisition of Shares Issued by Fondaction.

Eligible sector of activity added for the urban agglomeration of Îles-de-la-Madeleine

The Act respecting the sectoral parameters of certain fiscal measures will be amended so that activities in the recreation and tourism sector carried on by a corporation in the territory of the urban agglomeration of Îles-de-la-Madeleine may be recognized by Investissement Québec for the purposes of the refundable tax credit for Gaspésie and certain maritime regions of Québec.

This amendment will apply as of the 2015 calendar year.

Extension of the eligibility period under the tax credit and other changes

The eligibility period under the tax credit will be extended through December 31, 2020.

In addition, tax legislation will be amended to standardize the terms for calculating the amount of the refundable tax credit applicable to the various sectors of activity.

Tax legislation will also be amended so that, when determining the amount of the tax credit of a qualified corporation for a taxation year in which a calendar year ends, the aggregate of the amounts, each of which represents the salary or wages paid to an employee of the corporation for a pay period ended in the calendar year, may not exceed $83,333, calculated annually.

These amendments will apply as of the 2016 calendar year.

Reduction of the tax credit rates

Tax legislation will be amended to reduce, from 16% to 15%, the rate used to determine the amount of the refundable tax credit with respect to recognized activities in the wind-power sector, manufacturing sector, peat or slate processing sector and marine products processing sector.

Similarly, tax legislation will be amended to reduce, from 32% to 30%, the rate used to determine the amount of the tax credit with respect to recognized activities in the marine biotechnology sector, mariculture sector and recreation and tourism sector.

These amendments will apply as of the 2016 calendar year.

Other measures

A corporation that qualifies for the tax holiday for large investment projects will not be able to benefit, in respect of the salary or wages paid to an employee for a pay period, from the tax assistance relative to the holiday from employer contributions to the health services fund and the refundable tax credit for the creation of jobs in Gaspésie and certain maritime regions of Québec.

This change will apply as of the 2016 calendar year.

For more information, see pages A.58 to A.61 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

Further to changes in the QST system, large businesses will be able to claim input tax refunds (ITRs) in respect of property and services to which restrictions currently apply, at the rate of 25% in 2018, 50% in 2019, 75% in 2020 and 100% as of 2021.

As such, an amount of QST that becomes payable as of January 1 on the acquisition of property and services to which the restrictions apply may be included in the calculation of a large business's ITR, at the rate of 25%, 50%, 75% or 100%, depending on the year in question.

For more information, see pages A.72 and A.73 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB), published by the Ministère des Finances.

The rate of the contribution to the health services fund for employers in the service and construction sectors whose total payroll is equal to or less than $1 million will gradually decrease from 2.7% to 2.25% over a three-year period beginning in 2017.

Employers whose total payroll is between $1 million and $5 million will also see a gradual reduction in their contribution rate.

Additionally, the Act respecting the Régie de l'assurance maladie du Québec will be amended to stipulate that, for the purposes of calculating, for a year subsequent to 2016, the temporary reduction of the health services fund contribution of a specified employer, other than an eligible specified employer, whose total payroll is $1 million or less, the rate of reduction will be equal to:

• 2.55% for 2017
• 2.40% for 2018
• 2.25% for 2019 and 2020

For more information, see pages A.46 to A.48 of the document entitled Additional Information 2015-2016 (PDF – 1.96 Mb), published by the Ministère des Finances.

Effective April 22, 2015, a new measure is changing subsidized childcare fees. Fees now include:

• a basic contribution of $7.30 per day, per child, that you will continue to pay your childcare service provider, and
• an additional contribution, adjusted to your family income, that you will pay Revenu Québec when you file your 2015 income tax return 

If you would like to know more, refer to the information pages.

Start thinking about your contribution now!

The following tips will help you prepare for paying the additional contribution when you file your 2015 income tax return.

1. Estimate the amount of your additional contribution using the Additional contribution for childcare expenses calculator.
2. If you like, you can have the amount added to your source deductions, by completing and filing one of the forms below with your employer:
   • Source Deductions Return (TP-1015.3-V)
   • Request to Have Additional Income Tax Withheld at Source (TP-1017-V)

If you are self-employed, you can increase the amount of your tax instalments.

Effective April 22, 2015, a new measure is changing subsidized childcare fees. Fees now include:

• a basic contribution of $7.30 per day, per child, that you will continue to pay your childcare service provider, and
• an additional contribution, adjusted to your family income, that you will pay Revenu Québec when you file your 2015 income tax return 

If you would like to know more, refer to the information pages.

Start thinking about your contribution now!

The following tips will help you prepare for paying the additional contribution when you file your 2015 income tax return.

1. Estimate the amount of your additional contribution using the Additional contribution for childcare expenses calculator.
2. If you like, you can have the amount added to your source deductions, by completing and filing one of the forms below with your employer:
   • Source Deductions Return (TP-1015.3-V)
   • Request to Have Additional Income Tax Withheld at Source (TP-1017-V)

If you are self-employed, you can increase the amount of your tax instalments.

Effective April 22, 2015, a new measure is changing subsidized childcare fees. Fees now include:

• a basic contribution of $7.30 per day, per child, that you will continue to pay your childcare service provider, and
• an additional contribution, adjusted to your family income, that you will pay Revenu Québec when you file your 2015 income tax return 

If you would like to know more, refer to the information pages.

Start thinking about your contribution now!

The following tips will help you prepare for paying the additional contribution when you file your 2015 income tax return.

1. Estimate the amount of your additional contribution using the additional subsidized childcare contribution calculator.
2. If you like, you can have the amount added to your source deductions, by completing and filing one of the forms below with your employer:
   • Source Deductions Return (TP-1015.3-V)
   • Request to Have Additional Income Tax Withheld at Source (TP-1017-V)

If you are self-employed, you can increase the amount of your tax instalments.

Corporate income tax rates will change through a reduction of the general tax rate, adjustment of the small business deduction (SBD) and a refocusing of the SBD on corporations in the primary and manufacturing sectors, and the extension of the additional deduction for small and medium-sized manufacturing businesses to small and medium-sized businesses (SMBs) in the primary and manufacturing sectors.

General tax rate

From 2017 to 2020, the general tax rate will be gradually reduced by 0.4 of a percentage point. The rate reductions will take effect on January 1 of each of the aforementioned years.

The general corporate tax rate will be reduced from the current rate of 11.9% to 11.8% in 2017, 11.7% in 2018, 11.6 % in 2019 and, finally, 11.5% in 2020.

SBD

Changes will be made to the SBD to adjust the rate of the deduction in view of the reduction of the general tax rate and to refocus the SBD on certain types of corporations.

The minimum income tax rate for small corporations will be maintained at all times at 8%. For all practical purposes, the current SBD rate of 3.9% will be gradually reduced by 0.4 of a percentage point in the same manner and within the same time frame as the general tax rate is to be reduced, thereby maintaining the minimum rate at 8%.

Furthermore, only some of the corporations that currently qualify for the SBD will be able to continue to claim it, in whole or in part. They include, for a taxation year,

• any corporation that employs more than three full-time employees in its business throughout the year or that would usually have used the services of more than three full-time employees had financial, administrative, maintenance, management or other similar services not been provided to the corporation in the year by a corporation associated with it; and 
• any corporation in the primary or manufacturing sector.

A corporation that, for a taxation year, meets the requirement by having the minimum number of such employees will be able to claim the SBD at the maximum rate for that taxation year.

However, a corporation in the primary or manufacturing sector that fails to meet the requirement by not having the minimum number of such employees will nonetheless be able to claim the SBD according to the proportion of its activities in the primary or manufacturing sector. Primary sector activities are those attributable to agriculture, forestry, fishing, hunting, mining, quarrying, and oil and gas extraction, whereas manufacturing sector activities are those that constitute manufacturing and processing activities.

A corporation in the primary or manufacturing sector whose proportion of activities in the primary sector or in the manufacturing and processing sector, for a particular taxation year, is 50% or more will be able to claim the SBD at the maximum rate for that taxation year.

If the proportion of such activities for a particular taxation year is between 50% and 25%, a corporation in the primary or manufacturing sector will be able to claim, for that taxation year, the SBD at a rate that is reduced linearly.

The changes relating to the refocusing of the SBD on corporations in the primary and manufacturing sectors will apply to taxation years beginning after December 31, 2016.

Additional deduction for SMBs

Changes will be made to the additional deduction for SMBs so that it becomes the additional deduction for SMBs in the primary and manufacturing sectors. The activities that are considered primary sector activities or manufacturing sector activities for purposes of the SBD are also considered such activities for purposes of the additional deduction for SMBs in the primary and manufacturing sectors.

A corporation in the primary or manufacturing sector whose proportion of activities in the primary sector or in the manufacturing and transformation sector, for a particular taxation year, is 50% or more will be able to claim the additional deduction for SMBs in the primary and manufacturing sectors at the rate of 4%.

If the proportion of such activities for a particular taxation year is between 50% and 25%, the rate of the additional deduction for SMBs in the primary and manufacturing sectors that a corporation may claim will be reduced linearly.

These changes will apply to taxation years beginning after December 31, 2016.

For more information, see pages A.37 to A.44 of the document entitled Additional Information 2015-2016 (PDF – 1.96 Mb) published by the Ministère des Finances.

The health contribution will be phased out beginning in 2017 and will be completely eliminated by 2019.

Low-income tax payers will no longer have to pay the health contribution as of 2017, since the income threshold at which it becomes payable will be set at more than $40,000.

The maximum amount payable for middle-income tax payers will decline to $125 in 2017 and $80 in 2018, and for high-income tax payers, it will decline to $800 in 2017 and $600 in 2018.

For more information, see page A.5 of the Ministère des Finances document entitled Additional Information 2015-2016 (PDF – 1.96 Mb).

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.