The Finance Minister of Quebec, Carlos Leitao, presented the province’s fiscal budget 2018-2019 on March 27, 2018. The main points of this budget is given below:
- This budget proposes gradual reduction of the Health Services Fund (HSF) contribution rate for all small and medium-sized businesses (SMB). The contribution to the Health Services Fund (HSF) represents a fixed cost for businesses, which can impede job creation. With the March 2018 Québec Economic Plan, the additional reduction in the HSF contribution rate to 1.25% for the primary and manufacturing sectors and to 1.65% for the service and construction sectors will provide Québec SMBs considerable additional tax relief. In here, the payroll amount is $1 million. This rate will be applicable from January 1, 2022.
- The government has introduced a refundable tax credit, specifically for the print media, to aid in their transformation to the digital era.
- In order for all Québec SMBs to benefit from a reduction in their tax rate, the March 2018 Québec Economic Plan provides for a gradual reduction from 8% to 4% in the tax rate of SMBs in the service and construction sectors, as of the day following Budget Speech 2018-2019. This rate will be effective from January 1, 2021. This initiative will allow SMBs in the service and construction sectors to benefit from the same tax rate as those in the primary and manufacturing sectors on their first $500 000 of taxable income.
