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Published on November 12, 2025
• 3 min read
Montréal, November 13, 2025 – With 2026 fast approaching, Raymond Chabot Grant Thornton (RCGT) would like to remind you that both businesses and individuals still have some time to benefit from a reduced tax bill with the right year-end tax planning strategy.
The Year-end Tax Planning Guide for 2025 lists a series of measures aimed at optimizing taxes for companies, as well as for executives, investors and employees. Whether it involves steps to be taken before the end of the year to take advantage of corporate investment programs, to better structure the remuneration of executive shareholders or to reduce an employee’s tax bill, the main objective of this guide is to provide taxpayers with the tools they need to make the end of the year more profitable from a tax perspective!
Planning can pay off!
For businesses, with regard to capital cost allowance (CCA), it should be noted that the Department of Finance Canada has announced the reinstatement of immediate expensing for goods acquired on or after January 1, 2025 and included in several classes of assets. Therefore, a 100% deduction is applicable in the year of acquisition, particularly for machinery and manufacturing equipment. “The 2025 federal budget also provides for immediate expensing of manufacturing and processing buildings acquired on or after November 4, 2025 and ready for use before 2030,” stated Vincent Fortier, Senior Tax Manager at RCGT.
Another example is the federal enhanced scientific research and experimental development tax incentive program which can greatly benefit many companies. “For taxation years starting after December 15, 2024, the eligible expenditure limit for the 35% refundable tax credit has been increased from $3M to $6M. On top of that, this tax credit, which was available for Canadian-controlled private corporations (CCPCs), is now extended to eligible Canadian public corporations,” explained Sylvain Gilbert, Tax Partner and Regional Vice-President at RCGT. He added that “eligible capital expenditures incurred after that date now qualify for a partially refundable tax credit.”
The guide also reminds individuals that, among other things, this is their last chance to take advantage of the additional three-year repayment grace period under the Home Buyers’ Plan (HBP), applicable to withdrawals made on or before December 31, 2025. So now is the time to plan withdrawals from your RRSPs if you are thinking of buying your first home.
Various strategies are available for employees, such as reducing the taxable benefit associated with the use of a vehicle provided by their employer before December 31 or taking advantage of non-taxable benefits, including, for instance, the reimbursement of moving expenses, when certain conditions are met.
About Raymond Chabot Grant Thornton
Raymond Chabot Grant Thornton is a professional services firm dedicated to the success of organizations and their leaders since 1948. The firm’s professionals are committed to helping clients thrive by obtaining a deep understanding of what is important to them, their business and their industry. This knowledge, combined with a team of motivated and talented professionals, helps accelerate growth. A Québec and Canadian leader in the areas of assurance, tax, advisory services and business recovery and reorganization, Raymond Chabot Grant Thornton boasts more than 2,900 professionals, including approximately 200 partners, working in over 100 offices across the province of Quebec and in the Ottawa and Edmundston regions.
Together with Doane Grant Thornton, another Canadian firm, and the global Grant Thornton organization, our footprint spans across close to 160 countries with 76,000 employees who provide real insight, a fresh perspective and agility to keep clients moving ahead.
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Gaëlle Fontaine
Consultant, Communications and Public Affairs
Raymond Chabot Grant Thornton
438-349-0842
[email protected]