Québec Revenue Agency/Canada Revenue Agency
R&D Tax Credits
Québec offers the most generous R&D tax credits compared with other G7 countries, particularly for SMEs. In general, the companies enjoy the following rates:
- Federal: 35% tax credit (SME) and 20% (general tax credit for large or foreign-owned companies)
- Québec : 17.5% to 37.5% tax credit, refundable
- Together, these two measures reduce the costs of R&D by more than half
- In Canada, more than half of industrial R&D is done in Québec
The following table is a summary of the different rates and applications for the R&D tax credits
|Tax Credits - 2014|
|Canadian-controlled private corporation||0.411|
|Canadian-controlled private corporation||0.214|
|Canadian-controlled private corporation||0|
Tax Holiday for Foreign Experts
If you recruit foreign experts to work on your innovation, scientific research, and experimental development project in Quebec, you could obtain a tax holiday of up to 60 consecutive months.
The assistance applies to the salaries paid to the foreign experts, as follows:
- 100% of taxable earnings for the first two years
- 75% for the third year
- 50% for the fourth year
- 25% for the fifth year
You must hire a foreign researcher with an undergraduate diploma recognized by a Quebec university. The candidate must also have pertinent experience in the field.
To be eligible under this program, you must:
- Have, alone or with your accompanying spouse, including de facto spouse, net assets of at least $1,600,000 CAN obtained legally, excluding the amounts received by donation less than six months before the date on which the application was filed;
- Have experience in management in a legal farming, commercial or industrial business, or in a legal professional business where the staff, excluding the investor, occupies at least the equivalent of two full-time jobs, or for an international agency or a government or one of its departments or agencies;
- Intend to settle in Québec and sign an agreement to invest $800,000 CAN with a financial intermediary (broker or trust company) authorized to participate in the Investor Program.