Contact

(Français)

Services Curriculum Vitae Links
TAX BULLETIN - ARCHIVES 2022
  • 2022 Automobile Deduction Limits and Expense Benefit Rates for Businesses
  • EI premium rates and maximums
  • Personal Income Tax Rates - Québec
    Personal Income Tax Rates - Québec (2021) 1        
    Income Tax Bracket       $ Effective Rate      %       Marginal Rate        
    Interest & Ordinary Income  % Capital Gains % Canadian Dividends   Corporate Income Tax Rate - Québec (12/31)1 2021 2020
    Eligible      % Non-Eligible %     % %
    13 808   0.00 12.53 6.26 0.00 5.73   Income eligible to SBD 2
    15 728 1.53 27.53 13.76 4.53 18.37   >/= 5500 hours 13.00 13.00
    45 105 18.46 32.53 16.26 11.43 24.12   </= 5000 hours 20.50 20.50
    49 020 19.58 37.12 18.56 17.77 29.40   Investment income of a CCPC
    90 200 27.59 41.12 20.56 23.29 34.00    Net of dividend tax retund 19.50 19.50
    98 040 28.67 45.71 22.86 29.63 39.28    Without dividend tax refund 50.17 50.17
    109 755 30.49 47.46 23.73 32.04 41.30   Other income 26.50 26.50
    151 978 35.20 50.23 25.12 35.87 44.49        
    216 511 39.68 53.31 26.65 40.11 48.02        

    1  Extracts from CCH Tax Reference Booklet 2021.

    2 Qc's SBD included is conditional to a minimum payment of 5500 hours to employees of the corporation during the current or previous taxation year; it is cancelled gradually between 5000 and 5500 hours.

  • Salary vs Dividend Scenarios
    Income Tax Bracket       $ 1 Salary vs Dividend Scenarios 2
    Salary Dividend Advant. Div.
    Company Employee Company Shareholder  
    Inc  Bef Sal Ben 3 Sal Inc Tx 1 Ben 3 Net Inc Bef Sal Inc Tx Div Inc Tx 1 Net  
    13 808 100.00 -11.404% -88.60 -12.53% -8.224% 70.21 100.00 -13.00% 87.00 -5.73% 82.01 11.80
    15 728 100.00 -11.404% -88.60 -27.53% -8.224% 56.92 100.00 -13.00% 87.00 -18.37% 71.02 14.10
    45 105 100.00 -11.404% -88.60 -32.53% -8.224% 52.49 100.00 -13.00% 87.00 -24.12% 66.02 13.53
    49 020 100.00 -11.404% -88.60 -37.12% -8.224% 48.43 100.00 -13.00% 87.00 -29.40% 61.42 12.99
    90 200 100.00 -1.650% -98.35 -41.12%   57.91 100.00 -13.00% 87.00 -34.00% 57.42 -0.49
    98 040 100.00 -1.650% -98.35 -45.71%   53.39 100.00 -13.00% 87.00 -39.28% 52.83 -0.56
    109 755 100.00 -1.650% -98.35 -47.46%   51.67 100.00 -13.00% 87.00 -41.30% 51.07 -0.60
    151 978 100.00 -1.650% -98.35 -50.23%   48.95 100.00 -13.00% 87.00 -44.49% 48.29 -0.66
    216 511 100.00 -1.650% -98.35 -53.31%   45.92 100.00 -13.00% 87.00 -48.02% 45.22 -0.70

    1  Extracts from CCH Tax Reference Booklet 2021.

    2 Taking into account the company income tax rate and the cost of salary benefits 3 , assuming also that the company meets the 5500 hours criterion and that $100 before tax is available for distribution to its shareholders owning 40% or more of shares ,  the advantage of a dividend  other than eligible over a salary is shown in the last column of the table. Note that the advantage of the dividend would be higher for a shareholder owning less than 40% of shares due to the fact that he would have to contribute to EI but that it would be negative in the following cases: -$5.13 on average if the 5500 hours criterion is not met or -$1.88 on average if the taxable income was > $500k (taking into account that the excess  generates eligible dividends). Note also that the higher advantage in the first 4 levels of income tax bracket does not take into account the return on investment of QPP contributions.

    3 The cost of salary benefits of 8.224% for the employee and 11.404% for the employer  in 2022 details as follows: QPP 6.15% for the employee and 6.15% for the employer  up to $64900, QPIP 0.494% for the employee and 0.692% for the employer up to $88000, QHIP 1.65% for the employer & CNT 0.7% for the employer up to $83500 but not taking into account EI 1.58% for the employee and 2.212% for the employer up to $60300.