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

Share
November 22, 2024

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

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.

KPMG. Make the Difference.


Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.

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 upon such information without appropriate professional advice after a thorough examination of the particular situation. KPMG LLP does not provide legal services.

The information contained herein is not intended to be “written advice concerning one or more Federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

© 2025 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.
All fields with an asterisk (*) are required.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's . Privacy Statement

An error occurred. Please contact customer support.

Job seekers

Visit our careers section or search our jobs database.

Search now!

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Submit

Office locations

View locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Learn more

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Contact

Headline