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The Charter of the French language and its regulations govern the consultation of English-language content.

Cooperative Investment Plan (CIP) Deduction

You must subtract from an employee's gross remuneration for a pay period 125% of the amount withheld from their remuneration for the purchase of preferred shares qualifying under the CIP. The maximum amount that can be subtracted cannot be more than 30% of the result of the following calculation:

  • the employee's gross salary or wages for the pay period;

minus

  • the amount that the employee paid to a registered pension plan (RPP) for the pay period;
  • the value of the preferred shares that you transferred for the pay period, at the employee's request, to the employee's or the employee's spouse's registered retirement savings plan (RRSP).

If the amount you have to subtract exceeds 30%, contact us to find out if you can subtract the entire amount.

Example

If for a pay period an employee's gross salary is $3,500, the RPP contribution is $300 and the value of the preferred shares transferred to an RRSP is $200, the maximum you can subtract for the pay period is $900 (30% × ($3,500 − $300 − $200)).

You can therefore subtract from the employee's gross remuneration for the pay period the entire amount that corresponds to 125% of the amount withheld from their remuneration for the purchase of preferred shares qualifying under the CIP ($250 (125% × $200)).

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