Canada: Tax provisions in 2024 fall economic update (Quebec)
Includes several proposed changes to the tax credit for career extension and certain changes related to Quebec’s increase to the capital gains inclusion rate
Quebec's Finance Minister on November 21, 2024, issued the 2024 fall economic update, detailing several tax proposals. Although the update does not include any new changes to the corporate or individual (personal) tax rates, it announces several proposed changes to the tax credit for career extension and certain changes related to Quebec’s increase to the capital gains inclusion rate.
Changes to the tax credit for career extension, effective for the 2025 tax year, include raising the eligibility age to 65, increasing the exclusion threshold for eligible work income to $7,500, and adjusting the maximum amount of eligible work income to $12,500. The reduction threshold would increase to $56,500, and the reduction rate would rise to 7%.
For capital gains, the withholding rate for dispositions by nonresidents of certain taxable Quebec property would increase to 17.167% for transactions after December 31, 2024. The withholding rate for acquisitions of specified immovables by inter vivos trusts would also increase to 17.167%. Changes to Quebec’s additional capital gains exemption would reflect the increased capital gains inclusion rate of 2/3 for gains exceeding $250,000,* effective from June 25, 2024, with transitional rules for 2024.
Read a November 2024 report prepared by the KPMG member firm in Canada
*$=Canadian dollar