Source Deductions Return
Individuals use the Source Deductions Return (form TP-1015.3-V) to report the deductions and personal tax credits to which they are entitled so that you, their employer or payer, can calculate source deductions of income tax on their remuneration. These source deductions of income tax must be calculated using the source deduction table for Québec income tax, the formulas or a fixed rate.
If the source deductions of income tax must be made using a fixed rate, you must withhold income tax directly from the individual's remuneration without taking into account form TP-1015.3-V (or the basic amount if the individual did not provide form TP-1015.3-V). If we authorize you to reduce the amount of income tax withheld because the individual has filed an Application for a Reduction in Source Deductions of Income Tax (form TP-1016-V), you must take the authorized reduction into account.
Individuals can complete form TP-1015.3-V at any time to change the amounts of the deductions or credits to which they are entitled. A copy of form TP-1015.3-V does not have to be completed each year. If an individual does not complete form TP-1015.3-V, you must take into account only the basic amount in calculating source deductions of income tax. In that case, use “A” as the deduction code.
Given that the annual indexation of the income tax system does not affect an individual's deduction code, individuals are not required to complete form TP-1015.3-V each year.
Individuals who have more than one employer or payer at the same time (deduction code “0”)
An individual who has already asked another employer or payer to take into account the basic amount can complete form TP-1015.3-V to request that you use code “0” in withholding income tax. This will ensure that the basic amount is not taken into account a second time.
Exemption from source deductions of income tax respecting employment income
Do not withhold Québec income tax from an employee's employment income if the employee has requested an exemption by checking box 20 on form TP-1015.3-V because he or she estimates that his or her total income from all sources for the year will not exceed the total of the following amounts:
- the amount entered on line 10 of the form, multiplied by 1.25;
- the amount entered on line 19 of the form.
This exemption is valid only for the year for which it was requested.
Such an exemption applies only to employment income. You must not take it into account if you pay remuneration as a payer.
Exemption from source deductions of the health contribution
You do not have to withhold the health contribution of an individual who requests the exemption on line 22 of form TP-1015.3-V.
This exemption is valid only for the year of the request.
Individual who is not resident in Canada or who becomes resident in Canada during the year
If an individual is not resident in Canada in the year or becomes a resident during the year, the deductions and personal tax credits that the individual can enter on form TP-1015.3-V may be limited.
Individual who spends fewer than 183 days in Québec
An individual who spends fewer than 183 days in Québec in the year and expects to include at least 90% of his or her income for the year from all sources in the calculation of taxable income earned in Canada can enter, on lines 1 through 9 of form TP-1015.3-V for the year concerned, the total of the amounts to which he or she is entitled, except if:
- the individual is a foreign farm worker;
- the individual earned income in another province or territory of Canada (in that case, contact us).
However, the individual cannot enter any amount on form TP-1015.3-V with regard to the deduction for support payments.
Furthermore, no amount can be entered on form TP-1015.3-V if the individual expects that less than 90% of his or her income for the year from all sources will be included in the calculation of taxable income earned in Canada.
Individual who spends more than 182 days in Québec
An individual who spends more than 182 days in Québec during the year is considered to be resident in Québec throughout the year and can enter on form TP-1015.3-V (for the year concerned) the total of the amounts used to calculate the tax credits and deductions to which he or she is entitled.
Individual who becomes resident in Canada
You are required to keep the TP-1015.3-V forms submitted to you and to provide them to us on request.