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ProvTaxReduc

ProvTaxReduc should be used to indicate that the corporation is claiming this province's tax reduction or holiday. DT Max will then calculate income tax based on the amount of the allowable reduction.

Whether the Quebec tax holiday or other provincial tax reductions apply depends upon the following: 

PROVINCE        INCORP PLACE    INCORP DATE             DATE BEGAN
(NOTES)                                                 OPERATIONS


Quebec (1)          N/A         Before March 30/04       N/A
Nova Scotia (2)     N.S.        N/A                       "
NFLD & Labrador (3) N/A         April 1/03 - March 31/06  "

NOTES

1. The tax holiday or reduction is available for the corporation's first five taxation years.

2. The tax reduction for a new small business applies to the first three taxation years of a CCPC.

3. For businesses located on the Northeast Avalon, the tax holiday will be provided for the new company's first three fiscal years. For those located outside the Northeast Avalon, the tax holiday will apply for the first five years.

The following options are applicable for the keyword ProvTaxReduc.

  • Newfoundland and Labrador

  • Nova Scotia

  • Quebec

    • Secondary keywordTaxHoliday

    Use the keyword TaxHoliday to indicate whether the corporation is claiming the 5-year temporary exemption or the tax holiday for M&P businesses in remote resource regions.

    The following options are applicable for the keyword TaxHoliday.

    Types of Quebec tax holidays the corporation can claim
  • Temporary exemption

  • M&P business exemption

  • Election - M&P business exemption

  • Commercialization of an intellectual property

    • Secondary keywordExempt-Start

    Use the keyword Exempt-Start to indicate the beginning of the exemption period for the corporation. The beginning of the exemption period is on the starting date of the corporation's first taxation year.

    Secondary keywordExempt-End

    Use the keyword Exempt-End to indicate the end of the exemption period for the corporation. The end of the exemption period is the earlier of the last day of the five-year period that begins on the starting date of the corporation's first taxation year, or the last day of the taxation year preceding the taxation year in which the corporation ceases to be a qualified corporation.

    Keyword in subgroupEstablishment

    Use the keyword Establishment to enter the street of the corporation's establishment.

    Secondary keyword in subgroupSuite.e

    Use the keyword Suite.e to enter the suite number. If this is entered, DT Max will print the hash sign, "#" and the number. Do not enter the word "SUITE" or "#". If nothing is entered, DT Max will understand that there is no relevant suite number and will not print anything.

    Secondary keyword in subgroupCity.e

    Use the keyword City.e to enter the city name. DT Max will not check the spelling of the city name.

    Secondary keyword in subgroupProvince.e

    Use the keyword Province.e to select the province.

    The following options are applicable for the keyword Province.e.

    Secondary keyword in subgroupPostCode.e

    Use the keyword PostCode.e to enter the postal code. DT Max will make sure that it is in the correct format and will always enter the alphabetic portions in upper case.

    Secondary keyword in subgroupResource-Region

    Use the keyword Resource-Region to enter the Quebec remote resource region where the corporation carried out its activities.

    The following options are applicable for the keyword Resource-Region.

    List of remote resource regions of Quebec

    Secondary keywordPayroll.p

    Use the keyword Payroll.p to enter the relevant payroll amounts that have been incurred by the corporation in the taxation year.

    The following options are applicable for the keyword Payroll.p.

    Payroll information for purposes of Quebec form CO-737.18.18-V
  • Payroll incurred in remote resource region

  • Total payroll incurred

  • Total payroll incurred ($125,000 limit per employee)

    • Keyword in subgroupEmployee-Name

    Use the keyword Employee-Name to enter the name of the employee whose pay is attributable to manufacturing or processing activities.

    Secondary keyword in subgroupWages.Empl

    Use the keyword Wages.Empl to enter the wages incurred for the employee in the taxation year. DT Max will automatically limit the amount to a maximum of $125,000 if a greater value has been entered.

    This information is used to help determine if the corporation's activities consist primarily in carrying on a manufacturing or processing business.

    Secondary keyword in subgroupM&P-Labour

    Use the keyword M&P-Labour to enter the percentage of the employee's working hours that were devoted to manufacturing or processing activities. If you indicate a percentage of 90% or more DT Max will automatically enter 100%.

    This information is used to help determine if the corporation's activities consist primarily in carrying on a manufacturing or processing business.

    Keyword in subgroupM&P-Property

    Use the keyword M&P-Property to indicate the type of property that was used in manufacturing or processing activites.

    The following options are applicable for the keyword M&P-Property.

    Types of property used by the corporation in carrying out manufacturing or processing activities
  • Depreciable property

  • Leased property

    • Secondary keyword in subgroupDescript-Prop

    Use the keyword Descript-Prop to enter the description of the depreciable or leased property used in manufacturing or processing activities.

    Secondary keyword in subgroupCost.p

    Use the keyword Cost.p to enter either the capital cost or the lease cost of the property used to carry out manufacturing or processing activities.

    This information is used to help determine if the corporation's activities consist primarily in carrying on a manufacturing or processing business.

    Secondary keyword in subgroupM&P-Usage

    Use the keyword M&P-Usage to enter the proportion in which the property was used directly to carry out manufacturing or processing activities.

    This information is used to help determine if the corporation's activities consist primarily in carrying on a manufacturing or processing business.

    Secondary keywordProperty-Info

    Use the keyword Property-Info to enter the amount of capital cost of all the corporation's depreciable property or the leasing cost of all the corporation's leased property.

    The following options are applicable for the keyword Property-Info.

    Property cost of the corporation in the year
  • Capital cost of all depreciable property

  • Cost of all leased property

    • Secondary keywordReduction-Factor

    The eligibility conditions for the tax holiday have been changed to stipulate the obligation, for an eligible corporation, to obtain an annual eligibility certificate from Investissement Québec, which will determine, if need be, the reduction factor of the tax assistance applicable to the corporation and attributable to the move of a business or part of a business to the remote resource regions.

    Secondary keywordCert-Num

    Use the keyword Cert-Num to enter the certificate number.

    Secondary keywordEligBusiness

    If this corporation's activities almost entirely in carrying on of an eligible business ( EligBusiness is "YES"), the corporation is eligible for the Quebec tax holiday.

    The following options are applicable for the keyword EligBusiness.

  • Yes

  • No

    • Secondary keywordMemb-JointV

    If the corporation carried on an eligible business during the year as a co-participant of a joint venture ( Memb-JointV is "YES"), the corporation is not eligible for the Quebec tax holiday.

    The following options are applicable for the keyword Memb-JointV.

  • No

  • Yes

    • Secondary keywordBenef-Trust

    If the corporation was a beneficiary of a trust ( Benef-Trust is "YES") at any time during the year, it is not eligible for the Quebec tax holiday.

    The following options are applicable for the keyword Benef-Trust.

  • No

  • Yes

    • Secondary keywordCont-ActvBus

    If the corporation is carrying on an eligible business principally as a result of acquiring or renting property which was used in a previous business ( Cont-ActvBus is "YES"), it is not eligible for the Quebec tax holiday.

    This can occur where in the 12 months preceding the property's acquisition or rental:

    
(i)  the property was used in the vendor's or lessor's business or

    
(ii) it can be reasonably considered that the corporation has continued to
     carry on the vendor's or lessor's business or part of it.

    The following options are applicable for the keyword Cont-ActvBus.

  • No

  • Yes