Canada: Status of tax measures in 2021 budget (Quebec)

Tax measures in Quebec's 2021 budget

Tax measures in Quebec's 2021 budget

Legislation in Quebec—Bill 5—received first reading 2 November 2021.

Bill 5 includes measures that would:

  • Decrease the small business income tax rate to 3.2% (from 4%) by increasing the small business deduction, effective after 25 March 2021
  • Provide coronavirus (COVID-19) relief to businesses
  • Enhance the refundable tax credit for on-the-job training periods
  • Temporarily enhance the investment and innovation tax credit (C3i)
  • Enhance the “tax holiday” for large investment projects
  • Add restrictions to certain tax incentives
  • Maintain the “compensation tax” for financial institutions
  • Reflect amendments related to certain recently enacted federal rules (for instance, a decrease to the province’s dividend tax credit to 3.42% (from 4.01%) effective beginning in 2022)
  • Make changes to the non-eligible dividend tax credit in 2022

Read a November 2021 report prepared by the KPMG member firm in Canada


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