Tax Credit Programs for International Financial Centres (IFCs)
The tax holiday is calculated by applying a rate of 15%, 20%, or 25% to the cumulative total of eligible expenditures related to the project, with a maximum limit of $1 billion in eligible expenditures.
Tax Credit
Description:
This program offers a tax holiday on income generated from eligible activities related to large investment projects in Quebec. It also provides a holiday from employer contributions to the Health Services Fund (HSF) for wages paid to employees involved in these activities. The initiative aims to stimulate economic growth by attracting significant investments to the province.
Comments on Funding:
Duration: The tax holiday spans a period of 10 years.
Rates: The applicable rate (15%, 20%, or 25%) depends on the economic vitality index of the territory where the project is undertaken.
Cap: Eligible expenditures are capped at $1 billion for the purpose of calculating the tax holiday.
CPAQUEBEC.CA
Applications for the initial qualification certificate must be submitted before December 31, 2029, and prior to incurring significant project expenditures (defined as exceeding $1 million).
Eligibility:
Entities: Corporations or partnerships are eligible to apply.
Investment Threshold: A minimum investment of $100 million is required, which must be reached within a 48-month investment period starting from a date specified on the initial qualification certificate.
Location: Projects must be carried out within Quebec.
Sectors: Projects should not be in excluded sectors.
Application Steps:
Preliminary Assessment: Ensure the project meets all eligibility criteria.
Application Submission: Submit an application for the initial qualification certificate to the Ministère des Finances before significant expenditures are made and no later than December 31, 2029.
Certification: Upon approval, obtain the initial qualification certificate.
Project Execution: Carry out the investment project, ensuring compliance with all program requirements.
Annual Reporting: Submit annual certificates to maintain the tax holiday benefits throughout the 10-year period.
Documentation Needed:
Detailed project plan outlining objectives, timelines, and financial projections.
Proof of financial capacity to complete the project.
Documentation demonstrating that the project is not in an excluded sector.
Any additional information as required by the Ministère des Finances.
Other Things to Note:
The tax holiday applies only to income derived from eligible activities related to the investment project.
Projects spanning multiple regions will have the tax holiday rate determined based on the proportion of eligible expenditures in each region.
Maintaining detailed records is crucial for compliance and for the verification of eligible expenditures.
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