Quebec to harmonize with a proposed federal measure to extend the GST/HST holding corporation rules
Quebec announced new harmonization measures in Information Bulletin 2019-8 on July 22, 2019. The tax measures in this bulletin will align two Quebec QST tax measures with proposed changes to federal HST/GST tax legislation, a third tax measure relates to education savings plans.
Holding corporation rules extended to holding partnerships and trusts
Quebec says it will amend its provincial QST to harmonize with the federal proposal to extend the GST/HST holding corporation rules to holding partnerships and trusts. For more information on the federal draft legislation, see TaxNewsFlash-Canada 2019-24 "Holding Companies – Prepare for GST/HST Rules".
Quebec will also Increase the de minimus threshold for non-taxable imports to $40 (from $20) for goods imported from Mexico (related to the implementation the U.S.-Mexico-Canada Agreement (USMCA))
Finally, Quebec is harmonizing certain Quebec Education Incentive rules with amendments to the Canada Education Savings regulations.
In force dates
Quebec notes that the provincial QST changes will be adopted only after the federal GST/HST changes receive Royal Assent, and will generally have the same effective dates as under the federal legislation. The harmonization of the Quebec Education Incentive rules will generally apply as of September 1, 2019 (the same date as the federal changes).
For more information, contact your KPMG adviser.
Information is current to July 30, 2019. 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