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Quebec 2014 Budget
Canadian Tax and
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Tax measures proposed in the budget include the
following items. All changes are subject to legislative approval.
Creation of the Quebec Taxation Review Committee to
take stock of Quebec's tax system and recommend ways to improve it.
Stepping up efforts to fight tax evasion.
Business Income Tax Changes
Manufacturing SME (small and medium enterprise)
corporate income tax rate will be lowered from 8% to 6% effective June
5, 2014, and will be lowered to 4% effective April 1, 2015, at which time it will
correspond to the Canadian average.
Additional deduction for transportation costs of eligible manufacturing SMEs that are far from large centres - the deduction
will increase according to the remoteness of the SMEs. The
amount of this deduction may reach 6% of gross income for a taxation
Holiday from the contribution to the Health
Services Fund on salaries paid will be granted to eligible SMEs that
hire a specialized employee to foster innovation. The list of
recognized jobs for this reduction can be found in the Additional
Information on the Fiscal Measures of the Budget (link below).
Tax incentives to promote the modernization and
renewal of vessels at Quebec shipyards:
additional capital cost allowance (CCA) of 50%
for the construction or renovation of vessels.
possibility for ship owners to create a tax-free
reserve, with a view to modernizing or renewing their fleet of
20% reduction in business tax credit rates, the elimination or
suspension of certain tax measures announced since September 2012, and
caps on certain fiscal measures for business capitalization.
Existing mining tax regime maintained in order to preserve
Personal Income Tax Changes
credit for experienced workers enhanced, to be calculated on
the first $4,000 (increased from $3,000) of eligible work income
in excess of the first $5,000 of such income. This will be
effective with the 2015 taxation year.
Creation of a refundable tax credit of 20% of
eligible expenses, up to $200, for certain physical, artistic and cultural
activities. This will be available for an individual who is
age 70 or older on December 31 of a taxation year, but excludes
an individual who:
has income greater than $40,000 (indexed starting January 1,
2015) for the year; or
is exempt from tax for the year under certain sections of
the Taxation Act.
Implementation of a loan program adapted for
seniors to facilitate the payment of property taxes.
Tobacco tax increased by $4 per carton of 200 cigarettes as of
midnight June 4, 2014
Standardization of the tax rates respecting alcoholic beverages sold
for consumption at home (rates increased) and sold in restaurants and bars for
consumption on-site (rates lowered), as of August 1, 2014.
The Quebec government has changed hands from the Parti
Quebecois to the Liberals prior to the approval of the budget presented
below. The Quebec National Assembly meets again on May 6, 2014 to
start the next legislative session. It is not known at this time when
the Liberals will present a new budget.
Quebec Budget February 20, 2014
There were no significant tax announcements in the
2014-2015 budget. This budget did not pass, so no changes from it were
Tax measures proposed in the budget included the
The rate of the tax credit for the purchase of CRCD
shares will be reduced from 50% to 45%
Improvement to the tax credit to foster the
modernization of the tourism accommodation offering in the regions
budget measures will also be retained by Quebec, including but not
limited to the measures relating to:
addition of certain expenses to the list of
expenses eligible for the medical expense tax credit
introduction of a tax credit for search and rescue
elimination of graduated rate taxation for certain
trusts and estates
donations in the context of death
extension of carry-forward period for gifts of
ecosensitive land made by an individual, from 5 years to 10 years
increase in thresholds determining how frequently
employers must remit withholdings at source
For a complete list of the federal budget measures
retained, see the Budget
Plan page I.13