Quebec ties its tax system to the CELIAPP

(Quebec) The Quebec government will harmonize its tax system with several tax changes announced by the federal government, in particular the creation of the tax-free savings account for the purchase of a first property (CELIAPP).

Posted at 11:30 a.m.

Charles Lecavalier

Charles Lecavalier
The Press

Other measures covered by the announcement include the first-time home buyers’ tax credit, the rule on precipitated resales of residential real estate and the deduction for small businesses.

Regarding the CELIAPP, a new program unveiled by the federal government in its April budget which allows first-time buyers to save a down payment, Quebec is announcing a legislative and regulatory amendment to align itself with Ottawa.

“TFSAPP contributions will be deductible and income earned in this account will not be subject to tax. In addition, withdrawals made from a TFSA to purchase a first home will be tax-free. This measure will come into force during the year 2023”, specifies the Minister of Finance in a press release.

Quebec is also announcing “also the enhancement of the tax credit for the purchase of a first home, which will increase from $750 to an amount of up to $1,500”. “This measure will benefit Quebecers who wish to buy a first home, that is approximately 70,000 people per year,” the document specifies.

Tighten the screw on real estate flips

Quebec will also follow Ottawa’s example and tighten the screw on real estate “flip” enthusiasts by adopting a rule to “tax income from hasty resales of residential real estate”. “Profits from the resale of such goods within 12 months of their acquisition will henceforth be taxable, except in certain specific cases,” the statement said.

Then, the eligibility for the deduction for small businesses is widened: the ceiling increases from 15 million to 50 million. The measure will affect 1,100 companies.

Quebec is also lifting the ceiling of 5,000 hours worked for the refundable tax credit promoting the retention of experienced workers, the refundable tax credit for the retention of experienced workers and the refundable tax credit with regard to people with severe limitations to employment, a solution, according to the Ministry of Finance, to reduce the labor shortage. “This gesture will promote the integration or job retention of 28,000 workers and will benefit more than 13,000 businesses,” it says.


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