GOVERNMENT OF CANADA
GOVERNMENT OF QUEBEC
Interest rates for the
fourth calendar quarter
Extracts from the
Budget in Brief from the Minister of Finance of
On December 7, 2015, as one of its first actions,
the Government cut taxes for nearly 9 million
Canadians by reducing the second personal income tax
rate to 20.5 per cent from 22 per cent.
The Canada Child Benefit will provide a maximum
annual benefit of up to $6,400 per child under the
age of 6, and up to $5,400 per child aged 6 through
17. Payments to families will begin in July 2016
Budget 2016 will ensure that post-secondary
education remains affordable for students from low-
and middle-income families and that debt loads are
To reduce the period of time that out-of-work
Canadians are without income, Budget 2016 proposes
to reduce the EI waiting period from two weeks to
one week, effective January 1, 2017.
Phase 1 of the Government’s long-term infrastructure
plan provides $11.9 billion over five years to
immediately invest in the infrastructure Canadians
need—to modernize and rehabilitate public transit,
water and wastewater systems, provide affordable
housing, and protect infrastructure systems from the
effects of climate change.
Supplementary Information: Budget 2016 proposes
that the small business tax rate remain at 10.5 per
cent after 2016. In order to preserve the
integration of the personal and corporate income tax
systems, Budget 2016 also proposes to maintain the
current gross-up factor and DTC rate applicable to
non-eligible dividends (generally, dividends
distributed from corporate income taxed at the small
business tax rate).
The Québec Economic Plan:
The Economic Plan 2016-2017 provides for an
additional reduction in the HSF contribution for all
Québec SMBs starting on January 1, 2017. The rate
applicable to businesses with a payroll of $1
million or less will gradually be reduced by 2021,
i.e. from: 1.6% to 1.45% for the primary and
manufacturing sectors; 2.7% to 2.0% for the service
and construction sectors.
Reduction from 8% to 4% for primary and
manufacturing sectors SMBs.
As of the day after Budget Speech 2016-2017,
entrepreneurs who sell their business to a non-arm’s
length person will be able to benefit from
favourable tax treatment with respect to capital
To encourage SMBs in manufacturing and primary
sectors to integrate high value-added software into
their business process, a 20% tax credit is being
offered for fees incurred on contracts awarded for
the integration of management software packages.