Canada: Stock option deduction increased in Quebec | KPMG | GLOBAL

Canada: Stock option deduction increased in Quebec

Canada: Stock option deduction increased in Quebec

Measures in Quebec’s 2017 budget allow employees in Quebec to benefit from claiming a stock option deduction of 50%—up from 25%—for receiving certain shares from eligible public corporations. The increased deduction generally applies to stock options granted after 21 February 2017.

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The new measure, which harmonizes the Quebec rules with the federal rules, increases the stock option deduction for Quebec income tax purposes, provided the following conditions are met:

  • The options are for shares belonging to a class of shares listed on a recognized stock exchange.
  • The option is granted to an employee of a corporation that is a qualified corporation at the time the stock option agreement is entered into or the shares are acquired. A “qualified corporation” is a corporation with a Quebec payroll of at least $10 million for that calendar year.

 

Read a March 2017 report [PDF 66 KB] prepared by the KPMG member firm in Canada

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