Refundable Tax Credit Relating to a New Financial Services Corporation
A qualified corporation can receive, for a taxation year, a refundable tax credit equal to 40% of the eligible expenditures it incurs in the period of validity of its qualification certificate that is included in the given taxation year.
An eligible expenditure is an expenditure that a qualified corporation incurred during a taxation year that is attributable in whole or in part to the period of validity of its qualification certificate that is included in the taxation year.
In addition, such expenditure must be directly attributable to the activities stipulated in the qualification certificate of the qualified corporation that are performed in an establishment of the corporation located in Québec. Only the following are eligible expenditures:
- fees relating to the constitution of the initial regulatory file submitted to a recognized regulatory or self-regulating body of a financial market;
- fees relating to the constitution of the initial file for participation in a stock exchange;
- fees, dues and expenses paid to a recognized regulatory or self-regulating body of a financial market;
- fees and costs as a participant in a stock exchange;
- connection and usage fees for an electronic trading solution for participation in a stock exchange; or
- subscription fees for a financial analysis or research service.
However, the eligible expenditure of the qualified corporation is limited to $375,000, calculated on an annual basis. For a taxation year, this refundable tax credit is therefore limited to $150,000 on an annual basis. A qualified corporation that is associated with another corporation at any time in its taxation year will have to share the expenditure limit, and therefore the tax credit limit, with such other corporation under an agreement filed with the Minister of Revenue.
An eligible expenditure incurred by a qualified corporation must have been paid at the time the claim for the refundable tax credit is filed with Revenu Québec.
A qualified corporation that obtains a qualification certificate after March 20, 2012, can receive this refundable tax credit respecting an eligible expenditure it incurs after that date.
For more information, see page 46 in Additional Information on the Fiscal Measures of the Budget, published by the Ministère des Finances.