Ministère des Finances
Ministère des Finances
Ministère des Finances
A corporation that operates an international financial centre (IFC) may receive a tax credit for the salaries of its eligible employees.
A foreign specialist employed by the corporation may also benefit from a deduction in the calculation of his or her taxable income for a period of five consecutive years.
The tax benefit for a corporation holding IFC status can reach $18 000 per year, per employee. The type of tax benefit varies according to the category of activities carried out by the corporation.
The corporation may benefit from a non-refundable tax credit equal to 24% of the qualifying salary paid to eligible local employees.
The qualifying salary of a local employee refers to the income calculated under the Taxation Act (CQLR, chapter I-3) This link opens a new window.. For the purposes of the tax credit, it is limited to an amount of $75 000 for a full taxation year. The tax credit can therefore reach $18 000 per year, per employee.
If the salary is calculated for part of a taxation year (for example, in the case of a hiring or departure during the year), the maximum amount of the tax credit is calculated on a prorated basis according to the number of qualifying days.
Learn more about back office activities
The corporation may benefit from a refundable tax credit equal to 24% of the qualifying salary paid to eligible local employees.
The qualifying salary of a local employee refers to the income calculated under the Taxation Act (CQLR, chapter I-3) This link opens a new window.. For the purposes of the tax credit, it is limited to an amount of $75 000 for a full taxation year. The tax credit can therefore reach $18 000 per year, per employee.
If the salary is calculated for part of a taxation year (for example, in the case of a hiring or departure during the year), the maximum amount of the tax credit is calculated on a prorated basis according to the number of qualifying days.
Learn more about international financial transactions
The corporation may benefit from a refundable tax credit equal to 24% of the qualifying salary paid to eligible local employees.
The qualifying salary of a local employee refers to the income calculated under the Taxation Act (CQLR, chapter I-3) This link opens a new window.. For the purposes of the tax credit, it is limited to an amount of $75 000 for a full taxation year.
If the salary is calculated for part of a taxation year (for example, in the case of a hiring or departure during the year), the maximum amount of the tax credit is calculated on a prorated basis according to the number of qualifying days.
The total amount of the refundable tax credit is then deducted at 80%. For example, the calculation for a corporation with six eligible employees, all of whom earn more than $75 000, would be:
6 employees X $75 000 (maximum qualifying salary) = $450 000
$450 000 X 24% (refundable tax credit) = $108 000
Total credit after deduction at 80% = $86 400
Learn more about outsourcing contract
An eligible foreign specialist may benefit from a deduction in the calculation of his or her taxable income for a period of five consecutive years.
The deduction applies only to the Québec income tax return and represents a percentage of the foreign specialist’s total taxable income equal to: