Québec has announced changes in a recent information bulletin that will modify the concept of Taxable Québec Property by adding a condition which states that the prescribed property should have a connection with Québec, especially if it is a resource property or timber property. Information Bulletin 2016-7, which was published June 30, 2016, also discusses changes that amend the Mining Tax Act, introduces modifications to certain terms for applying the investment requirement of the Labour-Sponsored Funds and announces a residency requirement for the QST rebate to public service bodies.
Other changes announced by the bulletin include:
- The recognition of new college centers that are eligible for the refundable scientific research and experimental development tax credit
- Relaxing the distance standards for certain personal tax credits related to obtaining medical care
- Easing the terms and conditions for calculating the qualified labour expenditure limit, applicable to refundable tax credits for producing multimedia titles
- The reduction of the rate applicable to specified trusts on their property income from the rental of specified immovable properties, which will become 4.47 % as of the 2016 taxation year, consequential to the new federal 33% flat top rate for trusts
- A new provision for all refundable tax credits intended for businesses, clarifying that amounts must be reasonable to be entitled to such tax credits
- Clarification that unpaid salary is no longer deemed to be incurred in the taxation year during which it was actually paid for purposes of refundable tax credits pertaining to the development of e-business and international financial centres, if the salary remains unpaid for more than 180 days after the year-end
- Clarifications concerning the farm property tax credit program.
For more information, contact your KPMG adviser.
Information is current to July 12, 2016.