Revenu Québec Infos
/* ES HIDE ALL TABS FOR KUOOT php print render($tabs); */ ?>Changes to the Compensation Tax for Financial Institutions
The following changes have been made to the compensation tax:
- reduction of the tax rate applicable to salaries and wages paid during the period from April 1, 2018, to March 31, 2022;
- introduction of a maximum annual amount for salaries and wages paid by a financial institution after March 31, 2018, that are subject to the tax.
The tax rate applicable to salaries and wages paid by financial institutions during the period from April 1, 2022, to March 31, 2024, remains unchanged. The date on which the tax will be eliminated (March 31, 2024) also remains unchanged.
In addition, there have been no changes to the calculation of the compensation tax on insurance premiums or to the calculation of amounts determined with respect to an insurance fund. In these cases, the compensation tax rate is 0.48% until March 31, 2022, and 0.30% from April 1, 2022, to March 31, 2024.
Adjustment of the compensation tax rate on wages paidThe table below shows the adjusted compensation tax rates for financial institutions according to the period concerned.
Adjusted compensation tax rates for financial institutions April 1, 2018, to March 31, 2019 April 1, 2019 to March 31, 2020 April 1, 2020, to March 31, 2022 April 1, 2022, to March 31, 2024 Bank, loan corporation, trust corporation or corporation trading in securities 4.29% 4.22% 4.14% 2.80%* Savings and credit union 3.39% 3.30% 3.26% 2.20%* Any other person 1.37% 1.34% 1.32% 0.90%* * This rate has not been adjusted. Maximum amount of salaries and wages paid that are subject to the compensation taxThe maximum amount of salaries and wages paid after March 31, 2018, by a person that is a financial institution throughout a taxation year, and that are subject to the compensation tax for a given year, is as follows:
- in the case of a bank, a loan corporation, a trust corporation or a corporation trading in securities: $1.1 billion;
- in the case of a savings and credit union: $550 million;
- in the case of any other person: $275 million.
New rules specifying how to apply the maximum amount of salaries and wages subject to the compensation tax and the new tax rates have been introduced for financial institutions. These new rules apply to the following situations:
- a taxation year includes April 1, 2018 (the effective date of the changes);
- a taxation year includes March 31, 2024 (the date on which the compensation tax is to be eliminated);
- a taxation year has fewer than 365 days;
- a person subject to the tax is a financial institution for only a part of a taxation year.
For more information, see pages A.116 to A.124 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.
Changes to the Tax Credit for Québec Film Production
Tax legislation will be amended to take online-only productions into account. This means that corporations that hold a non-arm's length certificate issued by the Société de développement des entreprises culturelles (SODEC) in respect of a supplier of eligible online video services will be eligible for the tax credit, but only when it comes to eligible films they produce for corporations other than the supplier of online video services with which they are not dealing at arm's length.
This change will apply to film or television productions for which an application for an advance ruling, or an application for a qualification certificate if no application for an advance ruling was previously filed for the production, is filed with the SODEC after March 27, 2018.
Changes to assistance exclusionsTo ensure that sources of funding for the cultural sector continue to be complementary, the following assistance will be excluded for the purposes of the refundable tax credit for Québec film production:
- any financial contribution paid by a public body that holds a broadcasting licence issued by the Canadian Radio-television and Telecommunications Commission or a similar foreign licence;
- financial assistance granted by the National Film Board of Canada, and the amount corresponding to the fair market value of assistance granted by that body in the form of property or services.
These changes will apply to assistance paid or granted after March 27, 2018.
Addition of EurimagesTax legislation will be amended to add financial assistance granted by Eurimages to the list of excluded assistance for the purposes of the refundable tax credit for Québec film and television production.
This change will apply to financial assistance granted after March 12, 2017.
For more information, see pages A.86 to A.91 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.
Changes to the Tax Credit for Québec Film Production
Tax legislation will be amended to take online-only productions into account. This means that corporations that hold a non-arm's length certificate issued by the Société de développement des entreprises culturelles (SODEC) in respect of a supplier of eligible online video services will be eligible for the tax credit, but only when it comes to eligible films they produce for corporations other than the supplier of online video services with which they are not dealing at arm's length.
This change will apply to film or television productions for which an application for an advance ruling, or an application for a qualification certificate if no application for an advance ruling was previously filed for the production, is filed with the SODEC after March 27, 2018.
Changes to assistance exclusionsTo ensure that sources of funding for the cultural sector continue to be complementary, the following assistance will be excluded for the purposes of the refundable tax credit for Québec film production:
- any financial contribution paid by a public body that holds a broadcasting licence issued by the Canadian Radio-television and Telecommunications Commission or a similar foreign licence;
- financial assistance granted by the National Film Board of Canada, and the amount corresponding to the fair market value of assistance granted by that body in the form of property or services.
These changes will apply to assistance paid or granted after March 27, 2018.
Addition of EurimagesTax legislation will be amended to add financial assistance granted by Eurimages to the list of excluded assistance for the purposes of the refundable tax credit for Québec film and television production.
This change will apply to financial assistance granted after March 12, 2017.
For more information, see pages A.86 to A.91 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.
Extension of and Changes to the Refundable Tax Credit for Cellulosic Ethanol Production in Québec
The refundable tax credit for cellulosic ethanol production in Québec has been extended for five years. The tax credit is now calculated using a fixed rate, and the monthly ceiling on cellulosic ethanol production has been increased.
Extension of the eligibility periodTax legislation will be amended so that the eligibility period for the refundable tax credit for cellulosic ethanol production in Québec ends on March 31, 2023.
To be included in the eligible production of cellulosic ethanol of a qualified corporation for a particular month, eligible cellulosic ethanol must be produced after March 17, 2011, and before April 1, 2023, and the purchaser must take possession of it in the particular month, before April 1, 2023.
Change to the calculation of the refundable tax creditTax legislation will also be amended to provide that the refundable tax credit for cellulosic ethanol production in Québec will be calculated at a fixed rate of $0.16 per litre as of April 1, 2018.
If a qualified corporation's taxation year includes March 31, 2018, the tax credit is calculated in two ways:
- For each of the months in the part of the taxation year that precedes April 1, 2018, the credit must be calculated using the variable rate, taking into account the average monthly market price of ethanol.
- For each of the months in the part of the taxation year that follows March 31, 2018, the credit must be calculated using a fixed rate of $0.16 per litre.
The monthly ceiling on the production of cellulosic ethanol for a qualified corporation increased on April 1, 2018. For a particular month beginning after March 31, 2018, it is calculated by multiplying 821,917 litres by the number of days in the particular month.
If a qualified corporation's taxation year includes March 31, 2018, the corporation's monthly ceiling on the production of cellulosic ethanol for each of the months in the part of the taxation year that precedes April 1, 2018, is calculated by multiplying 109,589 litres by the number of days in the month. Its monthly ceiling on the production of cellulosic ethanol for each of the months in the part of the taxation year that follows March 31, 2018, is calculated by multiplying 821,917 litres by the number of days in the month.
For more information, see pages A.95 to A.98 of Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.
Extension of and Changes to the Refundable Tax Credit for Cellulosic Ethanol Production in Québec
The refundable tax credit for cellulosic ethanol production in Québec has been extended for five years. The tax credit is now calculated using a fixed rate, and the monthly ceiling on cellulosic ethanol production has been increased.
Extension of the eligibility periodTax legislation will be amended so that the eligibility period for the refundable tax credit for cellulosic ethanol production in Québec ends on March 31, 2023.
To be included in the eligible production of cellulosic ethanol of a qualified corporation for a particular month, eligible cellulosic ethanol must be produced after March 17, 2011, and before April 1, 2023, and the purchaser must take possession of it in the particular month, before April 1, 2023.
Change to the calculation of the refundable tax creditTax legislation will also be amended to provide that the refundable tax credit for cellulosic ethanol production in Québec will be calculated at a fixed rate of $0.16 per litre as of April 1, 2018.
If a qualified corporation's taxation year includes March 31, 2018, the tax credit is calculated in two ways:
- For each of the months in the part of the taxation year that precedes April 1, 2018, the credit must be calculated using the variable rate, taking into account the average monthly market price of ethanol.
- For each of the months in the part of the taxation year that follows March 31, 2018, the credit must be calculated using a fixed rate of $0.16 per litre.
The monthly ceiling on the production of cellulosic ethanol for a qualified corporation increased on April 1, 2018. For a particular month beginning after March 31, 2018, it is calculated by multiplying 821,917 litres by the number of days in the particular month.
If a qualified corporation's taxation year includes March 31, 2018, the corporation's monthly ceiling on the production of cellulosic ethanol for each of the months in the part of the taxation year that precedes April 1, 2018, is calculated by multiplying 109,589 litres by the number of days in the month. Its monthly ceiling on the production of cellulosic ethanol for each of the months in the part of the taxation year that follows March 31, 2018, is calculated by multiplying 821,917 litres by the number of days in the month.
For more information, see pages A.95 to A.98 of Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.
Increased Tax Credit Rate for the Acquisition of Shares in Fondaction to Be Temporarily Maintained
On June 1, 2015, the rate of the tax credit for the acquisition of shares issued by Fondaction was set at 20%.
In the Budget Speech delivered on March 27, 2018, the Minister of Finance of Québec announced that the rate of the tax credit would be maintained at 20% for all eligible shares acquired after May 31, 2018, but before June 1, 2021. Therefore, if an employee has authorized you to withhold an amount from his or her pay for the purchase, after May 31, 2018, of class A or B Fondaction shares, you must use the 20% rate to calculate the amount of income tax to withhold for any pay period during which such shares were purchased.
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 remuneration paid to the employee 100% of the amount deducted for the purchase, after May 31, 2018, of class A or B Fondaction shares.
However, if you use the formulas in the guide Formulas to Calculate Source Deductions and Contributions (TP-1015.F-V), you must subtract from the income tax payable for the year 20% of the amount deducted for the purchase, after May 31, 2018, of class A or B Fondaction shares.
Increased Tax Credit Rate for the Acquisition of Shares in Fondaction to Be Temporarily Maintained
On June 1, 2015, the rate of the tax credit for the acquisition of shares issued by Fondaction was set at 20%.
In the Budget Speech delivered on March 27, 2018, the Minister of Finance of Québec announced that the rate of the tax credit would be maintained at 20% for all eligible shares acquired after May 31, 2018, but before June 1, 2021. Therefore, if an employee has authorized you to withhold an amount from his or her pay for the purchase, after May 31, 2018, of class A or B Fondaction shares, you must use the 20% rate to calculate the amount of income tax to withhold for any pay period during which such shares were purchased.
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 remuneration paid to the employee 100% of the amount deducted for the purchase, after May 31, 2018, of class A or B Fondaction shares.
However, if you use the formulas in the guide Formulas to Calculate Source Deductions and Contributions (TP-1015.F-V), you must subtract from the income tax payable for the year 20% of the amount deducted for the purchase, after May 31, 2018, of class A or B Fondaction shares.
Extension of and Changes to the Refundable Tax Credit for the Production of Ethanol in Québec
The refundable tax credit for the production of ethanol in Québec has been extended for five years. Moreover, to simplify the application of the tax credit and improve the predictability of the assistance qualified corporations can receive, a fixed rate will be used to calculate the tax credit. The monthly ceiling on the production of ethanol will also be raised.
Extension of the eligibility periodTax legislation will be amended so that the eligibility period for the refundable tax credit for the production of ethanol in Québec ends on March 31, 2023.
Change to the calculation of the refundable tax creditTax legislation will also be amended to provide that the refundable tax credit for the production of ethanol in Québec will be calculated at a fixed rate of $0.03 per litre as of April 1, 2018.
If a qualified corporation's taxation year includes March 31, 2018, the tax credit is calculated in two ways:
- For eligible production of ethanol for each of the months in the part of the taxation year that precedes April 1, 2018, the variable rate for each of these months applies, taking into account the average monthly price of crude oil.
- For eligible production of ethanol for each of the months in the part of the taxation year that follows March 31, 2018, a fixed rate of $0.03 per litre applies.
The monthly ceiling on the production of ethanol for a qualified corporation increased on April 1, 2018, so that, for a particular month beginning after March 31, 2018, it is calculated by multiplying 821,917 litres by the number of days in the particular month.
If a qualified corporation's taxation year includes March 31, 2018, the corporation's monthly ceiling on the production of ethanol for each of the months in the part of the taxation year that precedes April 1, 2018, is calculated by multiplying 345,205 litres by the number of days in the month. Its monthly ceiling on the production of ethanol for each of the months in the part of the taxation year that follows March 31, 2018, is calculated by multiplying 821,917 litres by the number of days in the month.
For more information, see pages A.93 to A.95 of Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.
Extension of and Changes to the Refundable Tax Credit for the Production of Ethanol in Québec
The refundable tax credit for the production of ethanol in Québec has been extended for five years. Moreover, to simplify the application of the tax credit and improve the predictability of the assistance qualified corporations can receive, a fixed rate will be used to calculate the tax credit. The monthly ceiling on the production of ethanol will also be raised.
Extension of the eligibility periodTax legislation will be amended so that the eligibility period for the refundable tax credit for the production of ethanol in Québec ends on March 31, 2023.
Change to the calculation of the refundable tax creditTax legislation will also be amended to provide that the refundable tax credit for the production of ethanol in Québec will be calculated at a fixed rate of $0.03 per litre as of April 1, 2018.
If a qualified corporation's taxation year includes March 31, 2018, the tax credit is calculated in two ways:
- For eligible production of ethanol for each of the months in the part of the taxation year that precedes April 1, 2018, the variable rate for each of these months applies, taking into account the average monthly price of crude oil.
- For eligible production of ethanol for each of the months in the part of the taxation year that follows March 31, 2018, a fixed rate of $0.03 per litre applies.
The monthly ceiling on the production of ethanol for a qualified corporation increased on April 1, 2018, so that, for a particular month beginning after March 31, 2018, it is calculated by multiplying 821,917 litres by the number of days in the particular month.
If a qualified corporation's taxation year includes March 31, 2018, the corporation's monthly ceiling on the production of ethanol for each of the months in the part of the taxation year that precedes April 1, 2018, is calculated by multiplying 345,205 litres by the number of days in the month. Its monthly ceiling on the production of ethanol for each of the months in the part of the taxation year that follows March 31, 2018, is calculated by multiplying 821,917 litres by the number of days in the month.
For more information, see pages A.93 to A.95 of Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.
Extension of and Changes to the Refundable Tax Credit for the Production of Ethanol in Québec
The refundable tax credit for the production of ethanol in Québec has been extended for five years. Moreover, to simplify the application of the tax credit and improve the predictability of the assistance qualified corporations can receive, a fixed rate will be used to calculate the tax credit. The monthly ceiling on the production of ethanol will also be raised.
Extension of the eligibility periodTax legislation will be amended so that the eligibility period for the refundable tax credit for the production of ethanol in Québec ends on March 31, 2023.
Change to the calculation of the refundable tax creditTax legislation will also be amended to provide that the refundable tax credit for the production of ethanol in Québec will be calculated at a fixed rate of $0.03 per litre as of April 1, 2018.
If a qualified corporation's taxation year includes March 31, 2018, the tax credit is calculated in two ways:
- For eligible production of ethanol for each of the months in the part of the taxation year that precedes April 1, 2018, the variable rate for each of these months applies, taking into account the average monthly price of crude oil.
- For eligible production of ethanol for each of the months in the part of the taxation year that follows March 31, 2018, a fixed rate of $0.03 per litre applies.
The monthly ceiling on the production of ethanol for a qualified corporation increased on April 1, 2018, so that, for a particular month beginning after March 31, 2018, it is calculated by multiplying 821,917 litres by the number of days in the particular month.
If a qualified corporation's taxation year includes March 31, 2018, the corporation's monthly ceiling on the production of ethanol for each of the months in the part of the taxation year that precedes April 1, 2018, is calculated by multiplying 345,205 litres by the number of days in the month. Its monthly ceiling on the production of ethanol for each of the months in the part of the taxation year that follows March 31, 2018, is calculated by multiplying 821,917 litres by the number of days in the month.
For more information, see pages A.93 to A.95 of Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.
Extension of and Changes to the Refundable Tax Credit for the Production of Ethanol in Québec
The refundable tax credit for the production of ethanol in Québec has been extended for five years. Moreover, to simplify the application of the tax credit and improve the predictability of the assistance qualified corporations can receive, a fixed rate will be used to calculate the tax credit. The monthly ceiling on the production of ethanol will also be raised.
Extension of the eligibility periodTax legislation will be amended so that the eligibility period for the refundable tax credit for the production of ethanol in Québec ends on March 31, 2023.
Change to the calculation of the refundable tax creditTax legislation will also be amended to provide that the refundable tax credit for the production of ethanol in Québec will be calculated at a fixed rate of $0.03 per litre as of April 1, 2018.
If a qualified corporation's taxation year includes March 31, 2018, the tax credit is calculated in two ways:
- For eligible production of ethanol for each of the months in the part of the taxation year that precedes April 1, 2018, the variable rate for each of these months applies, taking into account the average monthly price of crude oil.
- For eligible production of ethanol for each of the months in the part of the taxation year that follows March 31, 2018, a fixed rate of $0.03 per litre applies.
The monthly ceiling on the production of ethanol for a qualified corporation increased on April 1, 2018, so that, for a particular month beginning after March 31, 2018, it is calculated by multiplying 821,917 litres by the number of days in the particular month.
If a qualified corporation's taxation year includes March 31, 2018, the corporation's monthly ceiling on the production of ethanol for each of the months in the part of the taxation year that precedes April 1, 2018, is calculated by multiplying 345,205 litres by the number of days in the month. Its monthly ceiling on the production of ethanol for each of the months in the part of the taxation year that follows March 31, 2018, is calculated by multiplying 821,917 litres by the number of days in the month.
For more information, see pages A.93 to A.95 of Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.
Temporary Increase in the Tax Credit for Taxi Drivers or Taxi Owners
Temporary Increase in the Tax Credit for Taxi Drivers or Taxi Owners
Extension of and Changes to the Tax Credit for the Production of Biodiesel Fuel in Québec
The refundable tax credit for the production of biodiesel fuel in Québec has been extended for five years. The tax credit is now calculated using a fixed rate, and the monthly ceiling on the production of biodiesel fuel has been increased.
Extension of the eligibility periodTax legislation will be amended so that the eligibility period for the refundable tax credit for biodiesel fuel production in Québec ends on March 31, 2023.
To be included in the eligible production of biodiesel fuel of a qualified corporation for a particular month, biodiesel fuel must be produced after March 31, 2017, and before April 1, 2023, and the purchaser must take possession of it in the particular month, before April 1, 2023.
Change to the calculation of the refundable tax creditTax legislation will also be amended to provide that the refundable tax credit for the production of biodiesel fuel in Québec will be calculated at a fixed rate of $0.14 per litre as of April 1, 2018.
If a qualified corporation's taxation year includes March 31, 2018, the refundable tax credit is calculated in two ways:
- For eligible production of biodiesel fuel for each of the months in the part of the taxation year that precedes April 1, 2018, the variable rate for each of these months applies, taking into account the average monthly price of crude oil.
- For eligible production of biodiesel fuel for each of the months in the part of the taxation year that follows March 31, 2018, a fixed rate of $0.14 per litre applies.
The monthly ceiling on the production of biodiesel fuel for a qualified corporation increased on April 1, 2018, so that, for a particular month beginning after March 31, 2018, it is calculated by multiplying 821,917 litres by the number of days in the particular month.
If a qualified corporation's taxation year includes March 31, 2018, the corporation's monthly ceiling on the production of biodiesel fuel for each of the months in the part of the taxation year that precedes April 1, 2018, is calculated by multiplying 345,205 litres by the number of days in the month. Its monthly ceiling on the production of biodiesel fuel for each of the months in the part of the taxation year that follows March 31, 2018, is calculated by multiplying 821,917 litres by the number of days in the month.
For more information, see pages A.98 to A.100 of Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.
Extension of and Changes to the Tax Credit for the Production of Biodiesel Fuel in Québec
The refundable tax credit for the production of biodiesel fuel in Québec has been extended for five years. The tax credit is now calculated using a fixed rate, and the monthly ceiling on the production of biodiesel fuel has been increased.
Extension of the eligibility periodTax legislation will be amended so that the eligibility period for the refundable tax credit for biodiesel fuel production in Québec ends on March 31, 2023.
To be included in the eligible production of biodiesel fuel of a qualified corporation for a particular month, biodiesel fuel must be produced after March 31, 2017, and before April 1, 2023, and the purchaser must take possession of it in the particular month, before April 1, 2023.
Change to the calculation of the refundable tax creditTax legislation will also be amended to provide that the refundable tax credit for the production of biodiesel fuel in Québec will be calculated at a fixed rate of $0.14 per litre as of April 1, 2018.
If a qualified corporation's taxation year includes March 31, 2018, the refundable tax credit is calculated in two ways:
- For eligible production of biodiesel fuel for each of the months in the part of the taxation year that precedes April 1, 2018, the variable rate for each of these months applies, taking into account the average monthly price of crude oil.
- For eligible production of biodiesel fuel for each of the months in the part of the taxation year that follows March 31, 2018, a fixed rate of $0.14 per litre applies.
The monthly ceiling on the production of biodiesel fuel for a qualified corporation increased on April 1, 2018, so that, for a particular month beginning after March 31, 2018, it is calculated by multiplying 821,917 litres by the number of days in the particular month.
If a qualified corporation's taxation year includes March 31, 2018, the corporation's monthly ceiling on the production of biodiesel fuel for each of the months in the part of the taxation year that precedes April 1, 2018, is calculated by multiplying 345,205 litres by the number of days in the month. Its monthly ceiling on the production of biodiesel fuel for each of the months in the part of the taxation year that follows March 31, 2018, is calculated by multiplying 821,917 litres by the number of days in the month.
For more information, see pages A.98 to A.100 of Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.
Extension of and Changes to the Tax Credit for the Production of Biodiesel Fuel in Québec
The refundable tax credit for the production of biodiesel fuel in Québec has been extended for five years. The tax credit is now calculated using a fixed rate, and the monthly ceiling on the production of biodiesel fuel has been increased.
Extension of the eligibility periodTax legislation will be amended so that the eligibility period for the refundable tax credit for biodiesel fuel production in Québec ends on March 31, 2023.
To be included in the eligible production of biodiesel fuel of a qualified corporation for a particular month, biodiesel fuel must be produced after March 31, 2017, and before April 1, 2023, and the purchaser must take possession of it in the particular month, before April 1, 2023.
Change to the calculation of the refundable tax creditTax legislation will also be amended to provide that the refundable tax credit for the production of biodiesel fuel in Québec will be calculated at a fixed rate of $0.14 per litre as of April 1, 2018.
If a qualified corporation's taxation year includes March 31, 2018, the refundable tax credit is calculated in two ways:
- For eligible production of biodiesel fuel for each of the months in the part of the taxation year that precedes April 1, 2018, the variable rate for each of these months applies, taking into account the average monthly price of crude oil.
- For eligible production of biodiesel fuel for each of the months in the part of the taxation year that follows March 31, 2018, a fixed rate of $0.14 per litre applies.
The monthly ceiling on the production of biodiesel fuel for a qualified corporation increased on April 1, 2018, so that, for a particular month beginning after March 31, 2018, it is calculated by multiplying 821,917 litres by the number of days in the particular month.
If a qualified corporation's taxation year includes March 31, 2018, the corporation's monthly ceiling on the production of biodiesel fuel for each of the months in the part of the taxation year that precedes April 1, 2018, is calculated by multiplying 345,205 litres by the number of days in the month. Its monthly ceiling on the production of biodiesel fuel for each of the months in the part of the taxation year that follows March 31, 2018, is calculated by multiplying 821,917 litres by the number of days in the month.
For more information, see pages A.98 to A.100 of Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.
Introduction of a Temporary Tax Credit for Pyrolysis Oil Production in Québec
A refundable tax credit for pyrolysis oil production in Québec has been introduced. This refundable tax credit, at a rate of $0.08 per litre, will be granted to a qualified corporation in respect of eligible pyrolysis oil it produces in Québec from residual forest biomass, which is sold in and intended for Québec, up to 100 million litres per year. A qualified corporation will be able to claim this tax credit for a period of five years beginning on April 1, 2018.
Qualified corporationA qualified corporation is, for a taxation year, a corporation, other than an excluded corporation, that, in the taxation year, has an establishment in Québec where it carries on an eligible pyrolysis oil production business.
Calculating the refundable tax creditA qualified corporation's refundable tax credit for pyrolysis oil production in Québec, for a taxation year, is equal to the aggregate of the amounts, each of which is determined for a particular month of the taxation year, and will correspond to the product obtained by multiplying, by a rate of $0.08 per litre, the lesser of the number of litres in the qualified corporation's eligible production of pyrolysis oil for the particular month and the number of litres in its monthly ceiling on the production of pyrolysis oil for that month.
Eligible production of pyrolysis oilA qualified corporation's eligible production of pyrolysis oil, for a particular month in a taxation year, is the number of litres of eligible pyrolysis oil produced in Québec by the corporation after March 31, 2018, but before April 1, 2023, that is sold by the corporation in Québec to a person that takes possession of it in the particular month, but before April 1, 2023, and that is intended for Québec.
Eligible pyrolysis oilFor the purposes of the refundable tax credit, eligible pyrolysis oil is the liquid mixture of oxygenated organic matter obtained from the condensation of vapours resulting from the thermal decomposition of residual forest biomass.
Residual forest biomass is forest biomass resulting from harvesting activities—residual trees (branches and tops), non-commercial tree parts, and twigs and leaves—as well as that resulting from primary or secondary processing, namely, bark, shavings, sawdust and woodchips. It includes non-contaminated, additive-free deconstructed wood, if it is not part of a hierarchical use approach along the lines of 3R-RD (source reduction, reuse, recycling, reclamation and disposal). However, standing trees are excluded.
Pyrolysis oil intended for QuébecEligible pyrolysis oil is considered to be intended for Québec if it is sold by the qualified corporation to a person and it is reasonable to expect that the person acquired it for personal use or consumption in Québec or for use or consumption in Québec by another person with which the person does not deal at arm's length.
In addition, the eligible pyrolysis oil must be delivered by the qualified corporation or on its behalf, and possession must be taken of the oil in Québec.
Monthly ceiling on the production of pyrolysis oilA qualified corporation's monthly ceiling on the production of pyrolysis oil, for a particular month of a taxation year, is equal to the number of litres obtained by multiplying 273,972 litres by the number of days in the particular month.
Document to attach to the tax credit applicationTo claim the refundable tax credit for a taxation year, a qualified corporation must attach the form prescribed by Revenu Québec to its income tax return for that year.
In addition, the qualified corporation must provide to Revenu Québec, on request, in respect of its eligible production of pyrolysis oil for each month of a taxation year, a report indicating the name of the person having acquired the eligible pyrolysis oil, the number of litres acquired, the date of the sale, the date on which possession was taken and the address of the place where possession was taken.
Application dateQualified corporations may claim the refundable tax credit for pyrolysis oil production in Québec for a taxation year that ends after March 31, 2018.
For more information, see pages A.100 to A.104 of Additional Information 2018‑2019 (PDF – 3.73 MB) published by the Ministère des Finances.
Introduction of a Temporary Tax Credit for Pyrolysis Oil Production in Québec
A refundable tax credit for pyrolysis oil production in Québec has been introduced. This refundable tax credit, at a rate of $0.08 per litre, will be granted to a qualified corporation in respect of eligible pyrolysis oil it produces in Québec from residual forest biomass, which is sold in and intended for Québec, up to 100 million litres per year. A qualified corporation will be able to claim this tax credit for a period of five years beginning on April 1, 2018.
Qualified corporationA qualified corporation is, for a taxation year, a corporation, other than an excluded corporation, that, in the taxation year, has an establishment in Québec where it carries on an eligible pyrolysis oil production business.
Calculating the refundable tax creditA qualified corporation's refundable tax credit for pyrolysis oil production in Québec, for a taxation year, is equal to the aggregate of the amounts, each of which is determined for a particular month of the taxation year, and will correspond to the product obtained by multiplying, by a rate of $0.08 per litre, the lesser of the number of litres in the qualified corporation's eligible production of pyrolysis oil for the particular month and the number of litres in its monthly ceiling on the production of pyrolysis oil for that month.
Eligible production of pyrolysis oilA qualified corporation's eligible production of pyrolysis oil, for a particular month in a taxation year, is the number of litres of eligible pyrolysis oil produced in Québec by the corporation after March 31, 2018, but before April 1, 2023, that is sold by the corporation in Québec to a person that takes possession of it in the particular month, but before April 1, 2023, and that is intended for Québec.
Eligible pyrolysis oilFor the purposes of the refundable tax credit, eligible pyrolysis oil is the liquid mixture of oxygenated organic matter obtained from the condensation of vapours resulting from the thermal decomposition of residual forest biomass.
Residual forest biomass is forest biomass resulting from harvesting activities—residual trees (branches and tops), non-commercial tree parts, and twigs and leaves—as well as that resulting from primary or secondary processing, namely, bark, shavings, sawdust and woodchips. It includes non-contaminated, additive-free deconstructed wood, if it is not part of a hierarchical use approach along the lines of 3R-RD (source reduction, reuse, recycling, reclamation and disposal). However, standing trees are excluded.
Pyrolysis oil intended for QuébecEligible pyrolysis oil is considered to be intended for Québec if it is sold by the qualified corporation to a person and it is reasonable to expect that the person acquired it for personal use or consumption in Québec or for use or consumption in Québec by another person with which the person does not deal at arm's length.
In addition, the eligible pyrolysis oil must be delivered by the qualified corporation or on its behalf, and possession must be taken of the oil in Québec.
Monthly ceiling on the production of pyrolysis oilA qualified corporation's monthly ceiling on the production of pyrolysis oil, for a particular month of a taxation year, is equal to the number of litres obtained by multiplying 273,972 litres by the number of days in the particular month.
Document to attach to the tax credit applicationTo claim the refundable tax credit for a taxation year, a qualified corporation must attach the form prescribed by Revenu Québec to its income tax return for that year.
In addition, the qualified corporation must provide to Revenu Québec, on request, in respect of its eligible production of pyrolysis oil for each month of a taxation year, a report indicating the name of the person having acquired the eligible pyrolysis oil, the number of litres acquired, the date of the sale, the date on which possession was taken and the address of the place where possession was taken.
Application dateQualified corporations may claim the refundable tax credit for pyrolysis oil production in Québec for a taxation year that ends after March 31, 2018.
For more information, see pages A.100 to A.104 of Additional Information 2018‑2019 (PDF – 3.73 MB) published by the Ministère des Finances.
Introduction of a Temporary Tax Credit for Pyrolysis Oil Production in Québec
A refundable tax credit for pyrolysis oil production in Québec has been introduced. This refundable tax credit, at a rate of $0.08 per litre, will be granted to a qualified corporation in respect of eligible pyrolysis oil it produces in Québec from residual forest biomass, which is sold in and intended for Québec, up to 100 million litres per year. A qualified corporation will be able to claim this tax credit for a period of five years beginning on April 1, 2018.
Qualified corporationA qualified corporation is, for a taxation year, a corporation, other than an excluded corporation, that, in the taxation year, has an establishment in Québec where it carries on an eligible pyrolysis oil production business.
Calculating the refundable tax creditA qualified corporation's refundable tax credit for pyrolysis oil production in Québec, for a taxation year, is equal to the aggregate of the amounts, each of which is determined for a particular month of the taxation year, and will correspond to the product obtained by multiplying, by a rate of $0.08 per litre, the lesser of the number of litres in the qualified corporation's eligible production of pyrolysis oil for the particular month and the number of litres in its monthly ceiling on the production of pyrolysis oil for that month.
Eligible production of pyrolysis oilA qualified corporation's eligible production of pyrolysis oil, for a particular month in a taxation year, is the number of litres of eligible pyrolysis oil produced in Québec by the corporation after March 31, 2018, but before April 1, 2023, that is sold by the corporation in Québec to a person that takes possession of it in the particular month, but before April 1, 2023, and that is intended for Québec.
Eligible pyrolysis oilFor the purposes of the refundable tax credit, eligible pyrolysis oil is the liquid mixture of oxygenated organic matter obtained from the condensation of vapours resulting from the thermal decomposition of residual forest biomass.
Residual forest biomass is forest biomass resulting from harvesting activities—residual trees (branches and tops), non-commercial tree parts, and twigs and leaves—as well as that resulting from primary or secondary processing, namely, bark, shavings, sawdust and woodchips. It includes non-contaminated, additive-free deconstructed wood, if it is not part of a hierarchical use approach along the lines of 3R-RD (source reduction, reuse, recycling, reclamation and disposal). However, standing trees are excluded.
Pyrolysis oil intended for QuébecEligible pyrolysis oil is considered to be intended for Québec if it is sold by the qualified corporation to a person and it is reasonable to expect that the person acquired it for personal use or consumption in Québec or for use or consumption in Québec by another person with which the person does not deal at arm's length.
In addition, the eligible pyrolysis oil must be delivered by the qualified corporation or on its behalf, and possession must be taken of the oil in Québec.
Monthly ceiling on the production of pyrolysis oilA qualified corporation's monthly ceiling on the production of pyrolysis oil, for a particular month of a taxation year, is equal to the number of litres obtained by multiplying 273,972 litres by the number of days in the particular month.
Document to attach to the tax credit applicationTo claim the refundable tax credit for a taxation year, a qualified corporation must attach the form prescribed by Revenu Québec to its income tax return for that year.
In addition, the qualified corporation must provide to Revenu Québec, on request, in respect of its eligible production of pyrolysis oil for each month of a taxation year, a report indicating the name of the person having acquired the eligible pyrolysis oil, the number of litres acquired, the date of the sale, the date on which possession was taken and the address of the place where possession was taken.
Application dateQualified corporations may claim the refundable tax credit for pyrolysis oil production in Québec for a taxation year that ends after March 31, 2018.
For more information, see pages A.100 to A.104 of Additional Information 2018‑2019 (PDF – 3.73 MB) published by the Ministère des Finances.
Changes to the Capital régional et coopératif Desjardins
The Act constituting Capital régional et coopératif Desjardins and tax legislation will be amended to create a new class of shares. For a limited time, shareholders who acquire shares in this new class will be able to claim a non-refundable tax credit equal to 10% (maximum $15,000) of the value of shares in the existing class.
Shareholders will be able to acquire shares in the new class of capital stock, provided they:
- convert shares they have held in the existing class for at least seven years;
- have never requested the redemption of shares in the existing or new class; and
- have never purchased shares by agreement.
As part of this change to the capital stock of Capital régional et coopératif Desjardins, amendments will also be made to the fund's constituting act to allow the fund to proceed, on an exceptional basis, with three more annual capitalization periods exceeding its cumulative capitalization limit.
The tax credit rate for shares in the existing class of capital stock of Capital régional et coopératif Desjardins acquired after February 28, 2018, will be reduced from 40% to 35%.
For more information, see pages A.105 through A.114 of the Additional Information 2018‑2019 (PDF – 3.73 MB) published by the Ministère des Finances.