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Quebec 2018 Budget
Canadian Tax and
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All proposed changes are subject to legislative
Personal Tax Changes
Introduction of a first-time home buyers' tax credit, in the amount
of $5,000 multiplied by the lowest personal tax rate (currently
15%). This will be available for qualifying homes acquired after
December 31, 2017. Further information in the additional
information on fiscal measures page A.15 (link above).
The RenoVert tax
credit, a temporary refundable tax
credit for eco-friendly renovations, is extended to March 31, 2019.
Shield will be enhanced by raising the maximum increase in
eligible work income relative to the previous year to $4,000 from
$3,000, effective for the 2018 taxation year.
worker tax credit will be available to workers age 61 and over
starting in 2018, and the amounts for all ages are increased by
$1,000, also for 2018.
tax credit for caregivers (on Quebec website) will
comprise four components starting in 2018, with the fourth component
to apply to informal caregivers who, without housing or co-residing
with a relative, regularly and continuously help the relative.
The new component of the tax credit will consist of $533 for each
eligible relative and will be reduced based on the eligible relative's
income for the year for which the tax credit is claimed.
The amount will be reduced at a rate of 16% for each dollar of
the eligible relative's income over a threshold of $23,700 (indexed
annually). Further information is available starting at page
A.27 of the additional information on fiscal measures (link above).
Quebec will add nurse practitioners to the list of medical
practitioners authorized to issue certifications for the purposes of
the tax credit for severe and prolonged impairment in physical or
easing the requirement relating to the number of hours of
volunteer respite services, and
adjusting the maximum amount that may be attributed by an
informal caregiver, based on the number of hours of volunteer
respite services, and
raising the annual envelope at a person's disposal, for
recognition purposes, in relation to each care recipient, from
$1,000 to $1,500.
Further information is available starting at page A.33 of the
additional information on fiscal measures (link above)
Enhancement of the refundable tax credit for the acquisition or
rental of property intended to help seniors live independently longer
- see page A.36 of the additional information document above.
Broadening the tax
credit for persons living alone, in order to encourage
intergenerational cohabitation, by extending the tax credit to
grandparents and great-grandparents of eligible students, for the 2018
and subsequent taxation years.
The dividend tax credit rates for
both eligible and non-eligible dividends are reduced for dividends
received after March 27, 2018, and are further reduced each year until
2020 for eligible dividends, and 2021 for non-eligible dividends.
Business and Other Fiscal Measures
More information on the measures below can be found in the
2018-2019 Budget Plan - Additional Information on Fiscal Measures (link above).
Small Business Deduction (SBD) - the budget announced an increase in
the small business deduction rate for small and medium sized
businesses (SMBs) in sectors other than the primary and manufacturing
sectors. This will reduce the small
business tax rate to 7% effective for the period from March 28 to
December 31, 2018, to 6% for 2019 and to 5% for 2020, and to 4% for
Additional deduction for primary and manufacturing sector SMBs will
be reduced to 3% for the period beginning March 28, 2018 until
December 31, 2018, to 2% for 2019 and to 1% for 2020. It will be
eliminated as of January 1, 2021. This results in a small
business corporate tax rate of 4% for each year for these SMBs.
The additional capital cost allowance (CCA) of 35% for manufacturing
or processing equipment and general-purpose electronic data processing
equipment will be revised to a rate of 60%. This will apply to
new property acquired after March 27, 2018 but before April 1,
2020. A special tax may apply if the property is not used mainly
in the course of carrying on a business for a period of at least 730
consecutive days after the property began to be used, or if it is not
used mainly in Quebec during that period. Property acquired
before March 28, 2018 which meets the conditions for claiming the
additional 35% CCA will qualify for the additional 35% for the
remainder of the period applicable to the acquired property.
There are many other refundable tax credit changes - see the
Additional information on Fiscal Measures starting at page A.49.
Quebec legislation will also be amended to incorporate measures
regarding, among other things, international taxation which were
included in the federal
budget of February 27, 2018.
Quebec Sales Tax (QST) and E-Commerce
The QST system will be changed to require suppliers with no physical
or significant presence in Quebec (non-resident suppliers) to register
with Revenu Quebec for the purpose of collecting and remitting the QST
for taxable supplies of goods and services made in Quebec to specified
The mandatory registration above will apply to a non-resident
supplier if the value of the considerations for all taxable supplies
made by the supplier in Quebec to persons that may reasonably be
considered consumers exceeds a threshold of $30,000.
The QST mandatory registration will also apply to digital platforms
that contol the key elements of transactions with specified Quebec
consumers, where the value of all taxable supplies that a digital
platform enables non-resident suppliers to make in Quebec to consumers
exceeds a threshold of $30,000.
The above are not the only fiscal measures included in the budget.