Donald Aubut
Senior Manager | CPA, CGA, M. Fisc. | Tax

On August 15, 2018, Québec Finance Minister, Carlos Leitão, announced a temporary increase in the tax credit rate for investments in manufacturing and processing equipment for businesses in the Saguenay—Lac-Saint-Jean, North Shore and Northern Québec regions.

The tax credit rate will be increased for acquisitions between August 16, 2018 and December 31, 2019.

Tax credit increase for expenses incurred during this period:

  • Saguenay—Lac-Saint-Jean: up to 20%
  • North Shore and Northern Quebec: up to 40%

The tax credit rate will also be increased for eligible metal processing companies:

Tax credit increase for expenses incurred between August 16, 2018 and December 31, 2019:

  • Saguenay—Lac-Saint-Jean: up to 25%
  • North Shore and Northern Quebec: up to 45%

This is a significant benefit for any business planning to acquire equipment. It’s important therefore to prepare the claim within the specified deadlines.

Additionally, the Health Services Fund (HSF) contribution rate payable by employers will be reduced for SMEs in the primary and manufacturing sector. The reduction will be based on the total payroll. For example, an SME with a $1,000,000 payroll will pay a rate of 1.25% instead of 1.45% for salaries paid as of August 16, 2018.

04 Sep 2018  |  Written by :

Donald Aubut is a tax expert at Raymond Chabot Grant Thornton. Contact him today!

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Mr. Trottier is a partner at RCGT. He is your expert in assurance for the Granby office. Contact him...

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Mr. Chrétien is a partner at RCGT. He is your expert in assurance for the Granby office. Contact...

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Guy Fauteux is a vice-president at Raymond Chabot Grant Thornton. Contact him today!

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