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 corporation0.411
Large enterprise0.206
Canadian-controlled private corporation0.214
Large enterprise0.107
Canadian-controlled private corporation0
Large enterprise0

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.

Source: http://www.immigration-quebec.gouv.qc.ca/ and www.investquebec.com

Investor Program

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.

Source: http://www.immigration-quebec.gouv.qc.ca/