Taxation and Incentives
ContactÉlie Farah Vice President
Investment Greater Montreal + 1 514 987-9336 eMail
Since taxation represents a major lever for developing businesses, the Québec government has set up a highly beneficial tax programs that includes an extensive range of highly competitive, targeted incentives, specifically for R&D activities and the high technology sector. According to KPMG, Montréal is the metropolis in North America where the tax burden for businesses in R&D is the lowest (2010).
Regarding corporate taxation, Québec has one of the most competitive overall rates for manufacturing and non-manufacturing companies in North America.
The federal government’s desire to cut the current 22.12% general corporation tax rate to 15% in 2012 would further strengthen Québec's tax advantage and give Canada the lowest overall tax burden on new corporate investments among the G7 nations.
The many tax incentives offered by the federal, provincial and municipal governments to stimulate private foreign investment include the following:
- R&D income tax credits
- Tax holiday for foreign researchers and experts
- Income tax credits for developing e-business
- Financial aid for job creation and training
- Strategic Support for Investment Program (PASI)
- Strategic Aerospace and Defence Initiative (SADI)
- Laval Biotechnology Development Centre (LBDC)
- Tax credit for the production of multimedia titles
- Film or video production services tax credit
- International financial centre
- réussir@montréal programs, industrial section (PR@M - Industrie), etc.