close
Share with your friends

Canada: Quebec to harmonize with proposed GST/HST rules for holding corporations

Canada: Quebec to harmonize with proposed GST/HST rules

Quebec announced new harmonization measures to align two Quebec sales tax (QST) measures with proposed changes to federal goods and services tax / harmonized sales tax (GST/HST) legislation. A third tax measure would relate to education savings plans.

1000

Related content

Holding corporation rules extended to holding partnerships and trusts

The Quebec release states that the amended provincial QST rules will harmonize with the federal proposal to extend the GST/HST holding corporation rules to holding partnerships and trusts. Read more about the federal draft legislation: TaxNewsFlash


Other measures

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.

*$=Canadian dollar


Effective dates

The release from 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).


Read a July 2019 report prepared by the KPMG member firm in Canada

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor 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 on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal