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

Deduction for the Purchase of Shares in a Labour-Sponsored Fund

The maximum amount you can subtract from the gross remuneration for the year of an employee who purchases Fonds de solidarité FTQ or Fondaction shares is $3,750 ($5,000 × 75%).

The tax credit for a labour-sponsored fund that an employee can claim in their income tax return is $3,750 multiplied by an estimated 20% tax rate.

Note

If you use the formulas in guide TP-1015.F-V, Formulas to Calculate Source Deductions and Contributions, to calculate the Québec income tax that must be withheld, the amount of the tax credit for a labour-sponsored fund is taken into account in the income tax calculation for the year.

End of note

Fonds de solidarité FTQ

Subtract from the employee's gross remuneration for the pay period 75% of the amount withheld for the purchase of Fonds de solidarité FTQ shares if:

  • the employee authorized you to withhold the amount;
  • the shares are class A shares; and
  • the employee is the first purchaser of the shares.

Fondaction

Subtract from the employee's gross remuneration for the pay period 75% of the amount withheld for the purchase of Fondaction shares if:

  • the employee authorized you to withhold the amount;
  • the shares are class A or class B shares; and
  • the employee is the first purchaser of the shares.

Fonds de solidarité FTQ and Fondaction

If an employee purchases both Fonds de solidarité FTQ and Fondaction shares for the annual maximum amount of $5,000 that entitles the employee to the tax credit, the maximum amount you can subtract from the employee's gross remuneration for a pay period must take into account the rate applicable for each fund.

Example

If an employee purchases $2,000 in Fonds de solidarité FTQ shares and $3,000 in Fondaction shares in the year, the maximum amount you can subtract from the employee's gross remuneration for the year is $3,750, which is the total of the following amounts:

  • $1,500 for Fonds de solidarité FTQ shares ($2,000 × 75%); and
  • $2,250 for Fondaction shares ($3,000 x 75%).
Note End of note

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