Global

Details

  • Service: Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 10/18/2012

Canada - Quebec proposes individual tax rate increases 

October 18:  Quebec announced changes to its proposed individual (personal) tax rate hikes on 10 October 2012.

As proposed, there will be no individual tax changes for 2012—retroactive or otherwise.


For 2013, Quebec's Parti Québecois (PQ) minority government will not proceed with changes to increase the tax rate on capital gains (originally proposed as a 75% inclusion rate) or to dividends (originally proposed to cut the dividend tax credit rate in half).


However, beginning in 2013, the PQ will introduce a new top tax bracket at 25.75% for income above $100,000.* This is an increase of 1.75% from the previous top tax bracket of 24% for income above $80,201.


*$=Canadian dollars

Top 2013 Quebec marginal rates

As a result of the 10 October 2012 announcement, the new top marginal tax rates for 2013 will be as follows (providing the proposal passes through Quebec’s minority Parliament):


  • Regular income — 49.97% (from 48.22% in 2012)
  • Capital gains — 24.99% (from 24.11% in 2012)
  • Eligible dividends — 35.20% (from 32.81% in 2012)
  • Non-eligible dividends — 38.54% (from 36.35% in 2012)

A new progressive health tax contribution also will be introduced.


Read an October report prepared by the KPMG member firm in Canada: Last Word on Quebec Personal Tax Hikes for 2012 and 2013?




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