Published | Category: Source deductions and contributions

Change in the Rate of the Tax Credit for the Acquisition of Fondaction Shares

Since June 1, 2015, the rate of the tax credit for the acquisition of Fondaction shares has been 20%. On June 1, 2018, that rate will decrease to 15%.

If an employee authorizes you to withhold an amount from his or her remuneration for the purchase, after May 31, 2018, of class A or class B Fondaction shares, you will have to adjust the way you calculate the employee's source deductions of income tax for each pay period in which an amount is withheld.

If you use the Source Deduction Table for Québec Income Tax (TP-1015.TI-V) to calculate source deductions of income tax, you must subtract from the employee's remuneration an amount equal to 75% (rather than 100%) of the amount withheld for the purchase, after May 31, 2018, of class A or class B Fondaction shares.

If you use the formulas in guide TP-1015.F-V to calculate source deductions of income tax, you must subtract from the income tax payable for the year an amount equal to 15% (rather than 20%) of the amount withheld for the purchase, after May 31, 2018, of class A or class B Fondaction shares. 

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