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Before making a major financial decision you
should consult a qualified professional.
Full details of the budget can be found on the Finance
Quebec website. All proposed changes are subject to legislative
approval.
Personal Tax Changes
Tax
credit for experienced workers will be enhanced beginning in
2016. The age of eligibility will be lowered over a period of 2
years, from 65 to 63. The maximum amount of eligible work income
on which the tax credit is calculated will be increased gradually to
$10,000 for all workers age 65 and over. The tax credit will
also be reducible based on work income.
Health contribution -
gradual elimination starting January 1, 2017, completely eliminated by
2019.
Tax shield introduced as of tax year 2016 - new refundable tax
credit for low and middle income taxpayers. Details can be found
in the Additional Information on Fiscal Measures - see link below.
Age amount tax credit - age of eligibility will increase from 65 in
2015 by 1 year each year, until it is age 70 in 2020.
Solidarity tax credit will be revised, with the amount to be
determined annually rather than monthly, based on information in the
tax return. The amount determined will continue to be paid as of
July in the following year, but depending on the value determined, the
tax credit will be paid on a monthly, quarterly or annual basis.
Payments beginning in July 2016 will be determined based on the 2015
tax return.
New assistance program for seniors to partially offset a municipal
tax increase pursuant to a new assessment roll - to receive the grant
for a particular year, an individual must apply in the tax return,
beginning with the tax return filed for taxation year 2015.
Business Income Tax Changes
General corporate income 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
11.5% in 2020.
Only some of the corporations currently eligible for the small
business deduction (SBD) will be able to continue claiming the full or
partial amount of the deduction, as eligibility criteria will be
added, including the requirement to have more than 3 employees.
See page A.39 of the Additional Information on Fiscal Matters document
(link below). Changes will apply to a taxation year beginning
after December 31, 2016.
Manufacturing SMBs (small and medium businesses) - changes will be
made to the additional deduction to extend eligibility for the
additional deduction to corporations in the primary sector and modify
the calculation parameters - effective for taxation years beginning
after December 31, 2016.
Health Services Fund contribution rate will be gradually reduced for
SMBs in the service and construction sectors.
Reduction of maximum tax credit rates for investments relating to
manufacturing and processing equipment, effective for eligible
expenses incurred after December 31, 2016.
Increase in refundable tax credit for on-the-job training periods.
Refundable tax credit for integration of IT in manufacturing SMBs -
extended for 2 years, rate of tax credit reduced, tax credit extended
to corporations in the primary sector.
Revision of many refundable tax credits for businesses.
Change to the calculation of a taxable benefit of an employee for
the purposes of a refundable tax credit.
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