Quebec’s Minister of Finance Eric Girard delivered the province’s 2022 Fall Economic Update on December 8, 2022, alongside a nine-page information bulletin of related fiscal measures. The province’s economic update anticipates a deficit of $1.97 billion for 2022-2023 before its deposits in the Generations Fund of $3.25 billion, bringing the budgetary balance before use of the stabilization reserve, to negative $5.22 billion. Although the update does not include any new changes to corporate or personal tax rates or introduce any significant tax measures, it does include changes to certain personal tax credits and confirms that the personal income tax system and social assistance will be indexed at 6.44% as at January 1, 2023.
Personal tax measures
Refundable senior assistance tax credit
Quebec’s update enhances the refundable senior assistance tax credit so that an eligible senior may be able to claim a maximum refundable credit of $2,000 ($4,000 if the eligible senior has an eligible spouse that also qualifies for the credit) for the 2022 taxation year. The maximum credit is adjusted based on family income and according to marital status (i.e., an eligible senior living alone, an eligible senior with an eligible spouse or an eligible senior with a spouse who does not qualify as an eligible senior). The refundable tax credit will be paid in the spring of 2023 after the 2022 tax return is filed.
Refundable tax credit for seniors’ activities
Quebec eliminates the refundable tax credit for seniors’ activities effective December 31, 2022.
Public prescription drug insurance plan premium
Quebec adjusts the exemptions allowed for the purpose of calculating the premium payable under the public prescription drug insurance plan. The annual premium payable by an adult is determined on the basis of family income, from which an exemption amount is subtracted. Information bulletin 2022-7 shows the amount of each of the allowable exemptions for 2022, according to household composition.
Other tax measure
Capital régional et coopératif Desjardins investment requirement
Quebec amends the Capital régional et coopératif Desjardins investment requirement to allow support for new affordable housing projects distributed throughout the regions of Quebec. This change will take effect for fiscal years beginning after December 31, 2022.
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Information is current to December 8, 2022. The information contained in this publication 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. For more information, contact KPMG's National Tax Centre at 416.777.8500