Highlights of the 2016-2017 Quebec Budget | KPMG | CA

Highlights of the 2016-2017 Quebec Budget

Highlights of the 2016-2017 Quebec Budget

March 17, 2016, No. 2016-11. Today, Quebec’s Minister of Finance and the Economy, Carlos Leitão, delivered the province’s 2016 budget. The budget is balanced and the government anticipates that it will maintain balanced budgets in the future.

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The most significant aspects of the budget are the reduction of the health contribution and its revocation in 2018, the reduction of the Health Services Fund contribution for small and medium-sized businesses (SMBs), the introduction of a deduction for innovative manufacturing corporations which lowers the tax rate to 4%, a new temporary refundable tax credit for major digital transformation projects and several changes to other tax credits.

Corporate Tax Changes

Rate reduction

  • The contribution to the Health Services Fund will be gradually reduced for all SMBs over a five-year period beginning in 2017. For SMBs in the primary and manufacturing sectors, the rate will decrease from 1.6% to 1.45% for employers whose total payroll is equal to or less than $1M. Gradual reduction will be available for employers with a total payroll between $1M and $5M. SMBs in other sectors of activity will also benefit from a rate reduction. The rate applicable to them will decrease from 2.7% to 2% for employers whose total payroll is equal to or less than $1M. Gradual reduction will also be available for employers in those other sectors of activity with a total payroll between $1M and $5M. Consequential amendments will be made to the temporary reduction of the contribution for employers in the natural and applied sciences sector.

Download this edition of the TaxNewsFlash to learn more [PDF 93.1 KB]

Disclaimer

Information is current to March 17, 2016. The information contained in this TaxNewsFlash-Canada is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

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