Ministère des Finances
HomeSite MapEmailPortal QuébecFrançais

Accueil

Budget Speech

Press releases

Budget documents

Agri-food

Culture

Early childhood centres

Education

Environment

Health

Housing

Municipal infrastructures

Research

Road network

Businesses

Individuals

Regions

Français

Previous budgets


2002 > 2003 Budget : Now, because now is the time for ACTION

Measures for businesses

Reduction of the tax on capital

Back to
Measures for businesses

Private investment, and thus jobs, are largely dependent on the tax treatment to which businesses are subject. The government provides for a significant, gradual reduction in the tax on capital in order to maintain the competitiveness of our corporate tax system.

 
Tax on capital reduction of more than 50% by 2007

To date, Québec has been able to offer businesses a generally competitive tax system. However, there have been numerous signs of late that this competitiveness may be in danger if we do not take the appropriate action. In particular, our tax on capital rate is currently the highest in North America.

The 2002-2003 Budget Speech meets the problem of the tax on capital burden head-on. The government is implementing a tax on capital reduction plan. The general tax rate will be gradually cut to less than half of its current rate by 2007, that is, from 0.64% to 0.30%.

 
Accelerated reduction for SMEs: as of January 2003, 60% of businesses will no longer pay the tax on capital

As of January 1, 2003, SMEs will be exempt from paying the tax on capital on the first $250 000 of paid-up capital. Beginning on January 1, 2004, the exemption threshold will be raised to $500 000. Subsequently, it will be gradually increased, until it reaches $1 million in 2006. Thanks to this measure, close to 60% of Québec businesses will no longer pay the tax on capital as of January 1, 2003. Once fully implemented, 210 000 SMEs, that is, 75% of all Québec businesses, will be exempt from the tax on capital.

 

To find out more
PDF PDF
documents
Budget Speech
Additional Information on the Budgetary Measures
Section 1 - Revenue Measures
 

Québec
© Gouvernement du Québec, 2001