Quebec issued Information Bulletin 2019-7 that announces “harmonization measures” that align Quebec tax measures with certain of the 2019 federal budget tax measures.
The information bulletin states that the changes to the Quebec tax system will only be adopted following assent to any federal statute (or adoption of any federal regulation) implementing the proposed federal measure being harmonized. The effective date of the changes in Quebec will apply on the same dates as the federal measures being harmonized.
Corporate income tax measures
Quebec will harmonize with various corporate tax measures proposed in the 2019 federal budget, including measures related to:
Individual (personal) income tax measures
Quebec will harmonize with various personal tax measures proposed in the 2019 federal budget, including those that would:
QST harmonization measures
Quebec will harmonize with various federal GST/HST measures proposed in draft legislation released in May 2019. These changes to the QST system will:
Quebec is studying the federal measure to extend the GST/HST holding corporation rules to holding partnerships and trusts, and will announce any harmonization decisions on this measure at a later date.
Other harmonization measures
Quebec will also amend its legislation regarding the rate used to calculate the taxable benefit relating to standby charges in connection with the personal use of an employer-provided automobile. Currently, the standby charge is computed as 2% of the cost of the vehicle each month. If the individual is employed principally in selling or leasing vehicles, then a reduced rate of 1.5% is available. Beginning in the 2020 tax year, the reduced rate of 1.5% will not be available to individuals who are also shareholders of the corporation.
Federal measures not adopted by Quebec
Quebec will not harmonize with certain 2019 budget measures, including measures related to:
Finally, Quebec will announce on a later date whether it intends to harmonize with federal 2019 budget measures to:
Read a June 2019 report prepared by the KPMG member firm in Canada
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