Canada: Proposed tax measures in 2025 fall economic update (Quebec)

Corporate and individual tax provisions

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november 26, 2025

Quebec's Finance Minister on November 25, 2025, delivered the province’s 2025 fall economic update, introducing several proposed tax provisions that would affect businesses and individuals.

Proposed corporate tax measures include:

  • Introducing a temporary two-year contribution holiday to the Health Services Fund for certain employers in the agriculture, forestry, and fishing sectors, for the years 2026 and 2027
  • Extending for five years, until December 31, 2030, the eligibility period for the refundable tax credit for Gaspesie and certain maritime regions of Quebec, with an expanded territorial reach for marine products processing
  • Extending for two years the income-averaging mechanism for certified forest producers, applicable to income from non-retail timber sales realized before January 1, 2028
  • Enhancing the refundable tax credit relating to mining or other resources by adjusting the cumulative eligible expense limit for certain expenses in Quebec’s Far North

Proposed individual (personal) tax measures include:

  • Reduction of the Quebec Pension Plan base contribution rate to 10.6% (from 10.8%) and the Quebec Parental Insurance Plan premium rates to 1.032% (from 1.186), effective January 1, 2026
  • Reduction of the Quebec Parental Insurance Plan premium rates to 1.032% (from 1.186%), effective January 1, 2026

The update also announces harmonization with several tax measures from the 2025 federal budget (read TaxNewsFlash), including immediate expensing for manufacturing and processing buildings, changes to the Canadian Entrepreneur Incentive, and adjustments to transfer pricing standards, among others.

Read a November 2025 report prepared by the KPMG member firm in Canada

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