Quebec Bill 175 received first reading on May 9, 2018.
This bill contains measures previously announced in Quebec's 2017 budget and in various information bulletins published in 2016 and 2017. The 180-page bill introduces an additional capital cost allowance (CCA) of 35% for certain manufacturing or processing equipment or computer equipment acquired after March 28, 2017. This additional rate will increase to 60% for eligible equipment purchases made after March 27, 2018. This bill enacts other measures related to corporate and indirect tax and various tax credits. It harmonizes several Quebec tax measures with federal tax measures; these harmonization measures are in addition to those already announced by Quebec in November 2017.
Bill 175 is considered substantively enacted for the purposes of IFRS and Accounting Standards for Private Enterprise as of May 9, 2018, the date it received first reading in the Quebec legislature (as Quebec has a majority government).
Key measures from Bill 175 are listed below.
Corporate and personal tax
Bill 175 introduces an additional CCA applicable to manufacturing or processing equipment (property of Class 53) and computer equipment (property of Class 50) acquired after March 28, 2017. The additional CCA rate of 35% will apply to eligible purchases made after March 28, 2017 and before March 28, 2018. An additional capital cost allowance rate of 60% will similarly apply to manufacturing or processing equipment and computer equipment acquired after March 27, 2018 and before April 1, 2020 (as announced in the province's 2018 budget.
Bill 175 also:
Various tax credits
This bill introduces, enhances, expands, or modifies several tax credits, including:
Bill 175 proposes to amend a few measures in the Act Respecting the Québec Sales Tax, including measures related to:
Harmonization with federal bills
The Taxation Act and the Act respecting the Québec Sales Tax are amended to harmonize with recent changes made to the Income Tax Act and the Excise Tax Act for federal bills enacted in 2016 and 2017. Bill 175 mainly enacts harmonization measures that were announced in Information Bulletins published in 2015, 2016 and 2017, including those that:
For more information, contact your KPMG adviser.
Information is current to May 22, 2018. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500
© 2020 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.