Canada: Tax measures in 2021 budget enacted (Quebec)
Bill 5 received Royal Assent on 10 December 2021.
Bill 5 received Royal Assent on 10 December 2021.
Legislation in Quebec—Bill 5—received Royal Assent on 10 December 2021.
The bill includes tax measures to:
- Decrease the small business income tax rate to 3.2% (from 4%) by increasing the small business deduction, effective after 25 March 2021
- Introduce an option for computing remunerated hours for the purposes of the small business deduction, effective for tax years ending after 30 June 2020 and before 1 July 2021
- Temporarily 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
- Add temporary discretionary powers for the administration of certain tax incentives
- Extend the employer contribution credit to the health services fund for employees on paid leave relating to COVID-19 until 28 August 2021
- Change the Quebec rules for certain intergenerational transfers following recent federal changes
- Decrease the provincial non-eligible dividend tax credit to 3.42% (from 4.01%) effective 2022
Read a December 2021 report prepared by the KPMG member firm in Canada
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor 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 on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.