Revenu Québec Infos

As a rule, a public service body (PSB) that is registered for the GST/HST and QST can claim input tax credits (ITCs) and input tax refunds (ITRs) in respect of the GST and QST paid to acquire an immovable for use as capital property, provided the percentage of use of the immovable in commercial activities is more than 50%. If, however, the percentage of use is 50% or less, the PSB cannot claim ITCs or ITRs. The same rules apply in respect of improvements made to an immovable.

Election respecting the exempt supply of an immovable

A PSB can elect to have the exempt supply of an immovable treated as a taxable supply. By doing so, the PSB will be able to claim ITCs and ITRs in respect of the GST and QST paid to acquire the immovable or make improvements to it, provided the percentage of use of the immovable in commercial activities is more than 10%.

Once the election has been made, the PSB must collect the GST/HST and QST on its supplies. That said, certain supplies (such as long-term residential leases) remain exempt.

To make the election, PSBs must file form FP-2626-V, Election or Revocation of the Election by a Public Service Body to Have an Exempt Supply of Real Property (an Immovable) Treated as a Taxable Supply.

Example

A PSB acquires a building and plans to use 45% of it in its commercial activities. As a result, unless the PSB makes the above-mentioned election, it cannot claim ITCs or ITRs in respect of the taxes paid to acquire the building. If it makes the election, it will be able to claim ITCs or ITRs equal to 45% of the taxes paid to acquire the building.

For more information, click Special Election for Immovables.

As a rule, a public service body (PSB) that is registered for the GST/HST and QST can claim input tax credits (ITCs) and input tax refunds (ITRs) in respect of the GST and QST paid to acquire an immovable for use as capital property, provided the percentage of use of the immovable in commercial activities is more than 50%. If, however, the percentage of use is 50% or less, the PSB cannot claim ITCs or ITRs. The same rules apply in respect of improvements made to an immovable.

Election respecting the exempt supply of an immovable

A PSB can elect to have the exempt supply of an immovable treated as a taxable supply. By doing so, the PSB will be able to claim ITCs and ITRs in respect of the GST and QST paid to acquire the immovable or make improvements to it, provided the percentage of use of the immovable in commercial activities is more than 10%.

Once the election has been made, the PSB must collect the GST/HST and QST on its supplies. That said, certain supplies (such as long-term residential leases) remain exempt.

To make the election, PSBs must file form FP-2626-V, Election or Revocation of the Election by a Public Service Body to Have an Exempt Supply of Real Property (an Immovable) Treated as a Taxable Supply.

Example

A PSB acquires a building and plans to use 45% of it in its commercial activities. As a result, unless the PSB makes the above-mentioned election, it cannot claim ITCs or ITRs in respect of the taxes paid to acquire the building. If it makes the election, it will be able to claim ITCs or ITRs equal to 45% of the taxes paid to acquire the building.

For more information, click Special Election for Immovables.

If a charity is a GST/HST registrant because it makes taxable sales, it must use the net tax calculation method for charities to complete its GST/HST and QST returns. For more information, click Calculation Method for Charities.

Election not to use the net tax calculation method for charities

A charity can elect not to use the net tax calculation method for charities if any of the following situations apply:

• The charity makes sales of zero-rated property or services in the ordinary course of business (for example, exported property or medical devices).
• The charity sells property or services outside Canada (or outside Québec, for QST purposes) in the ordinary course of business.
• Substantially all (90% or more) of the charity's sales of property and services are taxable.

To make the election, the charity must file form FP-2488-V, Election or Revocation of an Election Not to Use the Net Tax Calculation for Charities.

Once it has made the election, the charity must calculate its net tax according to the general rules. For more information, click Reporting QST and GST/HST.

Designated charities

A charity can apply for designation so that the services it provides become taxable if they are provided to GST/HST and QST registrants. In this case, the charity must calculate its net tax according to either the general rules or the special quick method of accounting for public service bodies. For more information, click Designated Charities.

If a charity is a GST/HST registrant because it makes taxable sales, it must use the net tax calculation method for charities to complete its GST/HST and QST returns. For more information, click Calculation Method for Charities.

Election not to use the net tax calculation method for charities

A charity can elect not to use the net tax calculation method for charities if any of the following situations apply:

• The charity makes sales of zero-rated property or services in the ordinary course of business (for example, exported property or medical devices).
• The charity sells property or services outside Canada (or outside Québec, for QST purposes) in the ordinary course of business.
• Substantially all (90% or more) of the charity's sales of property and services are taxable.

To make the election, the charity must file form FP-2488-V, Election or Revocation of an Election Not to Use the Net Tax Calculation for Charities.

Once it has made the election, the charity must calculate its net tax according to the general rules. For more information, click Reporting QST and GST/HST.

Designated charities

A charity can apply for designation so that the services it provides become taxable if they are provided to GST/HST and QST registrants. In this case, the charity must calculate its net tax according to either the general rules or the special quick method of accounting for public service bodies. For more information, click Designated Charities.

If a charity is a GST/HST registrant because it makes taxable sales, it must use the net tax calculation method for charities to complete its GST/HST and QST returns. For more information, click Calculation Method for Charities.

Election not to use the net tax calculation method for charities

A charity can elect not to use the net tax calculation method for charities if any of the following situations apply:

• The charity makes sales of zero-rated property or services in the ordinary course of business (for example, exported property or medical devices).
• The charity sells property or services outside Canada (or outside Québec, for QST purposes) in the ordinary course of business.
• Substantially all (90% or more) of the charity's sales of property and services are taxable.

To make the election, the charity must file form FP-2488-V, Election or Revocation of an Election Not to Use the Net Tax Calculation for Charities.

Once it has made the election, the charity must calculate its net tax according to the general rules. For more information, click Reporting QST and GST/HST.

Designated charities

A charity can apply for designation so that the services it provides become taxable if they are provided to GST/HST and QST registrants. In this case, the charity must calculate its net tax according to either the general rules or the special quick method of accounting for public service bodies. For more information, click Designated Charities.

As an employer, you must calculate, among other things, your Québec Pension Plan contributions and Québec parental insurance plan premiums, as well as those of your employees.

For more information, see Québec Pension Plan Contributions and Québec Parental Insurance Plan (QPIP) Premiums.

As an employer, you must calculate, among other things, your Québec Pension Plan contributions and Québec parental insurance plan premiums, as well as those of your employees.

For more information, see Québec Pension Plan Contributions and Québec Parental Insurance Plan (QPIP) Premiums.

As an employer, you must calculate, among other things, your Québec Pension Plan contributions and Québec parental insurance plan premiums, as well as those of your employees.

For more information, see Québec Pension Plan Contributions and Québec Parental Insurance Plan (QPIP) Premiums.

Businesses that offer landscaping services may have fiscal obligations with regard to the GST, the QST, income tax, source deductions and employer contributions.

GST and QST

A landscaping business that carries on taxable services in Québec must register for the GST and the QST. It must collect these taxes on its services and remit them to us. Furthermore, a landscaping business may claim an input tax credit (ITC) for the GST paid and an input tax refund (ITR) for the QST paid on the goods and services it acquired to carry out its landscaping services.

If the business is considered to be a small supplier, it is not required to register for the GST and the QST. However, it can choose to register. Registered small suppliers must collect the GST and the QST and remit them to us. If the small supplier is registered, it can claim ITCs and ITRs for the GST and QST paid on its purchases.

Note

A business that indicates the date, the type of service provided, the amounts of tax collected and its GST and QST registration numbers on its bills provides its clients that are also GST and QST registrants with the information they need to support their ITC and ITR claims.

For more information, see GST/HST and QST.

Income tax

If the business is operated by a corporation, the corporation must file an income tax return, along with its complete financial statements, no later than six months after the end of its taxation year. For more information, see Corporation Income Tax Return .

If the business is operated by an individual in business, the individual must file an income tax return no later than June 15 of the year following the taxation year concerned. For more information, see Income Tax Return.

Source deductions and employer contributions

A business that pays salaries and wages, or remuneration must register as an employer for source deductions. It must make source deductions and remit the amounts withheld and the applicable employer contributions. For more information, see Source Deductions and Contributions.

Businesses that offer landscaping services may have fiscal obligations with regard to the GST, the QST, income tax, source deductions and employer contributions.

GST and QST

A landscaping business that carries on taxable services in Québec must register for the GST and the QST. It must collect these taxes on its services and remit them to us. Furthermore, a landscaping business may claim an input tax credit (ITC) for the GST paid and an input tax refund (ITR) for the QST paid on the goods and services it acquired to carry out its landscaping services.

If the business is considered to be a small supplier, it is not required to register for the GST and the QST. However, it can choose to register. Registered small suppliers must collect the GST and the QST and remit them to us. If the small supplier is registered, it can claim ITCs and ITRs for the GST and QST paid on its purchases.

Note

A business that indicates the date, the type of service provided, the amounts of tax collected and its GST and QST registration numbers on its bills provides its clients that are also GST and QST registrants with the information they need to support their ITC and ITR claims.

For more information, see GST/HST and QST.

Income tax

If the business is operated by a corporation, the corporation must file an income tax return, along with its complete financial statements, no later than six months after the end of its taxation year. For more information, see Corporation Income Tax Return .

If the business is operated by an individual in business, the individual must file an income tax return no later than June 15 of the year following the taxation year concerned. For more information, see Income Tax Return.

Source deductions and employer contributions

A business that pays salaries and wages, or remuneration must register as an employer for source deductions. It must make source deductions and remit the amounts withheld and the applicable employer contributions. For more information, see Source Deductions and Contributions.

Businesses that offer landscaping services may have fiscal obligations with regard to the GST, the QST, income tax, source deductions and employer contributions.

GST and QST

A landscaping business that carries on taxable services in Québec must register for the GST and the QST. It must collect these taxes on its services and remit them to us. Furthermore, a landscaping business may claim an input tax credit (ITC) for the GST paid and an input tax refund (ITR) for the QST paid on the goods and services it acquired to carry out its landscaping services.

If the business is considered to be a small supplier, it is not required to register for the GST and the QST. However, it can choose to register. Registered small suppliers must collect the GST and the QST and remit them to us. If the small supplier is registered, it can claim ITCs and ITRs for the GST and QST paid on its purchases.

Note

A business that indicates the date, the type of service provided, the amounts of tax collected and its GST and QST registration numbers on its bills provides its clients that are also GST and QST registrants with the information they need to support their ITC and ITR claims.

For more information, see GST/HST and QST.

Income tax

If the business is operated by a corporation, the corporation must file an income tax return, along with its complete financial statements, no later than six months after the end of its taxation year. For more information, see Corporation Income Tax Return .

If the business is operated by an individual in business, the individual must file an income tax return no later than June 15 of the year following the taxation year concerned. For more information, see Income Tax Return.

Source deductions and employer contributions

A business that pays salaries and wages, or remuneration must register as an employer for source deductions. It must make source deductions and remit the amounts withheld and the applicable employer contributions. For more information, see Source Deductions and Contributions.

If, as part of the payroll services you provide to an employer, you prepare and file RL slips and summaries of source deductions and employer contributions, you must enter the employer's name and account number on all RL slips and summaries.

An employer's account number is composed of

• 10 numbers (the identification number); and
• the letters “RS” followed by 4 numbers (the file number).

Account numbers look like this: 1234567890RS0001.

Note that we assign an account number when an employer either registers for source deductions or makes its first remittance of source deductions.

For more information, see Registering for Source Deductions and RL-1 Summary – Summary of Source Deductions and Employer Contributions, or consult the Tax Preparers' Guide: RL Slips (ED-425-V).

If you are entitled to the reduced rate of the contribution to the health services fund for small and medium-sized businesses in the primary and manufacturing sectors, and the amounts paid to Revenu Québec toward your contribution to the health services fund after January 1, 2015, were not calculated using the reduced rate, you can determine the actual amount of your contribution for the year when you file the Summary of Source Deductions and Employer Contributions (form RLZ-1.S-V or RLZ-1.ST-V). If applicable, you will receive a refund of the overpayment. On line 38 of the summary, enter the amount of the contribution to the health services fund you remitted in the year using the periodic remittance forms.

For more information, refer to Information Bulletin 2014-11 (PDF – 555 KB), published by the Ministère des Finances on December 2, 2014.

The transitional measures in place to ease into the new rate of the tax on insurance premiums applicable to the payment of automobile insurance premiums have been updated to grant additional time to persons with a monthly reporting period.

For more information, see New Tax Rate – Tax on Insurance Premiums.

Starting in 2015, full-time students will no longer be eligible for the work premium, the adapted work premium or the supplement to the work premium, unless they are, at the end of the year, the parent of a child who lives with them.

A full-time student is a student pursuing vocational training at the secondary level or post-secondary studies who is in either of the following situations:

• In the year, the student begins and completes a term during which he or she must devote a minimum of 9 hours a week to classes or coursework.
• The student has a major functional deficiency within the meaning of the Regulation respecting financial assistance for education purposes, and he or she begins and completes, in the year, a term during which he or she receives a minimum of 20 hours of instruction per month.

For more information, refer to pages 29 to 30 of Information Bulletin 2014-11 (PDF – 555 KB), which was published on December 2, 2014, by the Ministère des Finances.

The limits and rates related to the Québec Pension Plan (QPP) for 2015 are as follows:

• The maximum pensionable earnings have been increased from $52,500 to $53,600.
• The basic exemption is $3,500.
• The maximum contributory earnings have been increased from $49,000 to $50,100.
• The contribution rate has been increased from 5.175% to 5.25% for both employers and employees.
• The maximum employee contribution has been increased from $2,535.75 to $2,630.25.
• The maximum employer contribution has been increased from $2,535.75 per employee to $2,630.25 per employee.
• The contribution rate for self-employed persons has been increased from 10.35% to 10.50%.
• The maximum contribution for a self-employed person has been increased from $5,071.50 to $5,260.50.

If your total payroll for the year is less than $5 million and you meet certain conditions, you may be able to take advantage of a reduction in

• the rate of your contribution to the health services fund for small and medium-sized businesses (SMBs) in the primary and manufacturing sectors;
• the contribution to the health services fund for the creation of specialized jobs in the natural and applied sciences sector.

Reduced rate of the contribution to the health services fund for small and medium-sized businesses in the primary and manufacturing sectors

If your total payroll for the year is less than $5 million and more than 50% of the total payroll is attributable to activities in the mining sector or the primary sector (which includes activities in the agriculture, forestry, and fishing and hunting sector and in the mining, quarrying and oil and gas extraction sector), the rate of your contribution will be determined as follows:

• if your total payroll is $1 million or less, the rate of your contribution is 1.6%;
• if your total payroll is more than $1 million but less than $5 million, the rate of your contribution is calculated using the following formula:

  W (%) = 0.935 + (0.665 × S)

  where

  S = total cumulative payroll divided by $1,000,000
• if your total payroll is $5 million or more, the rate of your contribution is 4.26%.

Note

The activities concerned are those grouped under codes 11, 21 or 31-33 of the North American Industry Classification System (NAICS) Canada. For a description of the codes, visit the Statistics Canada website.

This measure is effective January 1, 2015.

Reduced contribution to the health services fund to foster the creation of specialized jobs in the natural and applied sciences sector

If you hired an employee to hold a recognized full-time job in Québec, and your total payroll for the year is less than $5 million, you may be able to take advantage of a reduction in the contribution to the health services fund until December 31, 2020, for the increase in your payroll attributable to the hiring of specialized employees. To calculate the reduction and obtain a refund, complete form LE-34.1.12-V, Reduction of the Contribution to the Health Services Fund: Creation of Specialized Jobs, and enclose it with the RL-1 summary.

Below are the principal changes made to the guide entitled Formulas to Calculate Source Deductions and Contributions (TP-1015.F-V) for 2015.

Variable E

The indexation factor used to calculate the value of personal tax credits for 2015 is 1.06%.

Variables H, H1 and H2 – Deduction for employment income

The maximum deduction for employment income has been increased from $1,110 to $1,120 for 2015. Consequently, the maximum amount of variables H, H1 and H2 has been increased from $1,110 to $1,120.

Variable K – The constant for adjusting the income tax rate

For 2015, the income tax rates applicable to the taxable income brackets remain unchanged and the income thresholds for these brackets have been indexed. Specifically,

• the 16% rate applies to taxable income of $41,935 or less (previously $41,495);
• the 20% rate applies to taxable income of more than $41,935, but not more than $83,865 (previously $82,985);
• the 24% rate applies to taxable income of more than $83,865, but not more than $102,040 (previously $100,970);
• the 25.75% rate applies to taxable income of more than $102,040.

The values of variable K are therefore $1,677 (increased from $1,659), $5,032 (increased from $4,979) and $6,817 (increased from $6,746).

Variable M – Québec Pension Plan

The QPP contribution rate has been increased from 10.35% to 10.50%, for 2015, which corresponds to a contribution rate of 5.25% for the employee and 5.25% for the employer.

In addition, the maximum pensionable earnings for the purposes of the QPP have been increased from $52,500 to $53,600. Variable M has therefore been increased from $2,535.75 to $2,630.25.

Variables N and N1 – Québec parental insurance plan

The maximum insurable earnings subject to QPIP premiums have been increased from $69,000 to $70,000 for 2015. The employee premium rate remains 0.559%, and the employer premium rate remains 0.782%. As a result, variable N is $391.30 (instead of $385.71) and variable N1 is $547.40 (instead of $539.58).

Variables Q and Q1 – Shares in Fondaction and in the Fonds de solidarité des travailleurs du Québec

The temporary increase in the tax credit for the purchase of shares issued by Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l'emploi, which came into effect on June 1, 2009, comes to an end on May 31, 2015. As such, the rate of the tax credit for the purchase of shares issued by Fondaction decreases from 25% to 15% for any share or fraction of a share purchased after May 31, 2015. This changes the way the source deduction of income tax of an employee who pays into the fund through source deductions is calculated.

Q = amount withheld for a pay period for the purchase of class A shares in the Fonds de solidarité des travailleurs du Québec (FTQ) or amount withheld for the pay period that begins after May 31, 2015, for the purchase of class A or class B shares in Fondaction, le fonds de développement de la Confédération des syndicats nationaux pour la coopération et l'emploi

Q1 = amount withheld for the pay period that ends before June 1, 2015, for the purchase of class A or class B shares in Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l'emploi

Note

The total value of variables Q and Q1 must not exceed $5,000 for the year. For the pay period in which the annual maximum is reached, the value of variables Q and Q1 must be zero.

Variable W – Rate of the contribution to the health services fund

The definition of variable W has been changed to include the reduced rate of the contribution to the health services fund for SMBs in the primary or manufacturing sector. The reduction applies where the total payroll of the SMB is less than $5 million and 50% of the total payroll is attributable to activities in the primary and manufacturing sectors. Variable W is calculated as follows:

W (%) = 0.935 + (0.665 × S)

See document TP-1015.F-V for more information.

Variable Z – Health contribution

For 2015, the rates and the amounts used to calculate the value of the health contribution (variable Z) remain unchanged. However, the net income thresholds have been indexed.

Estimated annual net income (R)
Health contribution (Z)

$18,370 or less

$0

More than $18,370, no more than $40,820

Whichever is less:

• $100
• 5% x (R − $18,370)

More than $40,820, no more than $132,650

Whichever is less:

• $200
• $100 + [5% × (R − $40,820)]

More than $132,650

Whichever is less:

• $1,000
• $200 + [4% × (R − $132,650)]

The rates, thresholds and amounts applicable to source deductions and contributions for 2015 are described below.

Indexation for 2015

Every year, the personal income tax system is automatically indexed. The indexation factor for 2015 is 1.06%.

Income tax rates and income thresholds

For 2015, the income tax rates applicable to the taxable income brackets remain unchanged and the income thresholds for these brackets have been indexed. Specifically,

• the 16% rate applies to taxable income of $41,935 or less (previously $41,495);
• the 20% rate applies to taxable income of more than $41,935, but not more than $83,865 (previously $82,985);
• the 24% rate applies to taxable income of more than $83,865, but not more than $102,040 (previously $100,970);
• the 25.75% rate applies to taxable income of more than $102,040.

Source Deductions Return (form TP-1015.3-V)

The Source Deductions Return (form TP-1015.3-V) has been revised for 2015 to take into account the indexation of the amounts appearing on it.

The indexed amounts used to determine deduction codes for 2015 are shown in the table below. The figures for 2014 are provided for information purposes.

Amounts to calculate source deductions
2015 2014 Basic amount $11,425 $11,305 Amount transferred from one spouse to the other $11,425 $11,305 Amount for other dependants who are 18 or older $3,065 $3,035 Amount for a child under 18 enrolled in post-secondary studies $2,105 $2,085 Additional amount for a person living alone (single-parent family) $1,655 $1,640 Amount for a severe and prolonged impairment in mental or physical functions $2,595 $2,570 Amount for a person living alone $1,340 $1,325 Age amount $2,460 $2,435 Amount for retirement income $2,185 $2,160 Reduction threshold used to calculate the net family income (This income is used to calculate the age amount, the amount for a person living alone and the amount for retirement income.) $33,145 $32,795 Indexation rate for 2015 1.06% Gratuities and retroactive pay

The threshold to determine the method to be used to calculate the source deduction of income tax from gratuities and retroactive pay has been increased from $14,130 to $14,300 for 2015.

Deduction for employment income

The maximum deduction for employment income has been increased from $1,110 to $1,120 for 2015.

Emergency services volunteer

The tax-exempt financial compensation paid to an emergency services volunteer has been increased from $1,110 to $1,120 for 2015.

Maximum pensionable earnings and QPP contribution rate

For 2015, the maximum pensionable earnings for the purpose of the QPP have been increased from $52,500 to $53,600 and the QPP contribution rate has been increased from 10.35% to 10.50%, which corresponds to a contribution rate of 5.25% for the employee and 5.25% for the employer. The maximum annual contribution to be withheld for any employee has therefore been increased from $2,535.75 to $2,630.25.

Maximum insurable earnings and QPIP premium rate

For 2015, the maximum insurable earnings for the purpose of the QPIP have been increased from $69,000 to $70,000. The employee premium rate remains 0.559% and the employer premium rate remains 0.782%. As a result, the maximum annual employee premium is $391.30 (instead of $385.71) and that of the employer is $547.40 (instead of $539.58).

Maximum remuneration subject to the contribution to the financing of the CNT

The portion of the remuneration in excess of $70,000 (instead of $69,000) is not subject to the contribution to the financing of the CNT for 2015.

The temporary increase in the tax credit for the purchase of shares issued by Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l'emploi, which came into effect on June 1, 2009, comes to an end on May 31, 2015. As such, the rate of the tax credit for the purchase of shares issued by Fondaction decreases from 25% to 15% for any share or fraction of a share purchased after May 31, 2015. This changes the way income tax is withheld from an employee who pays into the fund through source deductions.

If you use the Source Deduction Table for Québec Income Tax (TP-1015.TI-V) to determine the amount of income tax to withhold, you must subtract from the employee's gross remuneration, for a pay period that begins after May 31, 2015, 75% (rather than 125%) of the amount deducted from the employee's remuneration for the purchase of shares issued by Fondaction. For more information, refer to section 5.4.1 of the Guide for Employers (TP-1015.G-V).

If you use the formulas in the guide entitled Formulas to Calculate Source Deductions and Contributions (TP-1015.F-V) to determine the amount of income tax to withhold, you must take into account the changes to the formulas. For more information, refer to guide TP-1015.F-V.