In order to stimulate the economy and entrepreneurship in Quebec, the federal and provincial governments introduced tax assistance programs several years ago. Usually in the form of tax credits, this assistance is available to companies in various industries.
Given the ever-changing economic environment, it is reasonable for governments to modify these programs on a regular basis.
Discover some of the federal and provincial tax assistance programs currently available to Quebec businesses.
Tax assistance for SMEs at various levels federally and in Quebec in 2018
Some tax assistance measures can be implemented at both the federal and provincial levels of government. Although the purpose of these measures is essentially the same from year to year, the figures and limits are subject to change over time. The following are in effect for fiscal year 2018.
Subject to certain criteria, small businesses in Quebec can be granted a tax deduction on their first $500,000 of annual active income. Quebec SMEs also benefit from an exemption of up to $848,252 on capital gains earned on shares of small businesses.
In order to promote growth, companies are also offered a temporary accelerated depreciation rate of 50% if they have recently purchased manufacturing and processing equipment. More precisely, this measure is applicable to equipment acquired after 2015 and before 2026.
Tax credits that apply only at the federal level
The federal government proposes a tax credit program to facilitate the entry of apprentices into the labour market. For each eligible employee, a company can have its tax burden reduced by a maximum of $2,000.
Tax assistance measures exclusive to Quebec
The provincial government is not far behind and also proposes ways to reduce business taxes in order to promote their sustainability.
A good example of this type of measure is the easing of tax provisions applicable to the transfer of family businesses. In the same vein, a tax credit program has been introduced to support the development and capitalization of Quebec cooperatives.
SMEs can also obtain an additional deduction of up to 60% for two years on the purchase of computer equipment.
Finally, to encourage both public transit and the companies that promote it, the Government of Quebec, through Revenu Quebec, grants a deduction equal to 200% of the value of the employees' transportation passes, the cost of which is borne by the employer.
Make sure you take advantage of the tax deduction programs you are eligible for
In conclusion, the tax assistance programs listed above represent only a portion of all the measures introduced by the federal and provincial governments.
To find out if your company could benefit from any of these programs or others not mentioned, please do not hesitate to contact T2inc. Our team, which specializes in corporate taxation, can ensure you get the maximum number of deductions.