Source Deductions Return (Form TP-1015.3-V)
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.
Individuals have to give you a completed copy of this form:
- on the day they take up employment (if you are an employer);
- before they receive remuneration for a first time (if you are a payer);
- within 15 days after an event that reduces the amounts entered on the previously completed copy of form TP-1015.3-V that results in a different deduction code for them.
Individuals can also complete and give you a copy of form TP-1015.3-V at any time to:
- request a reduction in the amount of income tax that is withheld to take into account tax credits and deductions to which they are entitled;
- have an additional amount of income tax withheld; or
- apply for an exemption from source deductions of Québec income tax on their employment income.
You are required to keep the TP-1015.3-V forms submitted to you and to provide them to us on request.
If you use the Source Deduction Table for Québec Income Tax (TP-1015.TI-V) to calculate the amount of income tax to withhold, use the deduction code that corresponds to the total amount of the personal tax credits entered on form TP-1015.3-V that an individual gave you to determine the amount you have to withhold from the remuneration. If the individual did not give you a copy of form TP-1015.3-V, you must withhold income tax taking into account only the basic personal amount for the year. 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.
If you use the formulas in the guide entitled Formulas to Calculate Source Deductions and Contributions (TP-1015.F-V), you must withhold income tax from the remuneration based on the total amount of the personal tax credits the individual entered in the most recent copy of form TP-1015.3-V the individual gave you. If the individual did not give you a copy of form TP-1015.3-V, you must withhold income tax taking into account only the basic personal amount for the year.
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 personal amount if the individual did not provide that form).
An individual who has already asked another employer or payer to take into account the tax credits to which the individual is entitled can enter "0" on line 10 of form TP-1015.3-V to ensure that the tax credits are not taken into account a second time in the calculation of source deductions of income tax. In that case, use code "O" to withhold income tax.
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 amounts on lines 10 and 19 of the form. This exemption is valid only for the year for which it is requested.
An exemption from source deductions of income tax applies only to employment income. You must not take it into account if you pay remuneration as a payer.
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 may 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, the individual cannot enter an amount 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 may 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
Contact us to find out what rules apply with regard to the amounts that an individual who becomes resident in Canada during the year must enter on form TP-1015.3-V.