Quebec govt. makes adjustments to certain fiscal measures for individuals and businesses
The damage caused by COVID-19 to businesses were taken into account by the Quebec government
QUÉBEC — The Quebec government announced on June 30 that it is making adjustments to certain fiscal measures for individuals and businesses to take into account, among other things, the damage caused by the COVID-19 pandemic.
“Our tax legislation is constantly evolving to better meet the needs of individuals and businesses, especially in these difficult times,” said Eric Girard, minister of finance, in a prepared statement. “Our objective is to allow our economy and Québec society as a whole to return to cruising speed as quickly as possible.”
Ad hoc adjustment to the small business deduction
To limit the impact of the suspension of corporations’ activities on their eligibility for the small business deduction, where applicable, an ad hoc adjustment will be made to the calculation of remunerated hours, an eligibility criterion for this measure.
Temporary discretionary power
In order not to penalize corporations that had to temporarily cease or modify their activities because of the pandemic and that, as a result, have difficulty meeting certain sectoral parameters necessary to obtain a fiscal incentive measure, the government will grant a temporary discretionary power to the departments and agencies responsible for administering these parameters so that they may, on an exceptional basis, authorize these corporations’ eligibility.
Adapting to the reality of distance learning
The tax legislation will also be amended to adapt the refundable tax credit for childcare expenses and the disability supports deduction to distance learning.
This enhancement is in response to the acceleration of the technological shift and the significant increase in distance training offered by educational institutions in an effort to comply with the health and distancing guidelines related to the COVID-19 pandemic.
Specialized nurse practitioners
Legislative amendments will allow specialized nurse practitioners (SNPs) to issue, in the same way as physicians, a certificate for the application of certain tax credits, including the refundable tax credit for home support for seniors. SNPs will also be able to prescribe therapeutic care that is essential to the maintenance of an individual’s vital functions in order to enable the individual to claim the tax credit for medical expenses or care or the tax credit for severe and prolonged impairments in mental or physical functions.
Registered retirement income fund
Information Bulletin 2020-9 also confirms the harmonization of Québec tax legislation with the federal tax legislation in order to incorporate the measure allowing a 25% reduction in the required minimum withdrawal from registered retirement income funds (RRIF) in 2020.