Change in the Rate of the Tax Credit for the Acquisition of Shares Issued by Fondaction
On June 1, 2015, the rate of the tax credit for the acquisition of shares issued by Fondaction decreased from 25% to 20%. On June 1, 2016, the rate will further decrease to 15%.
If an employee authorizes you to withhold an amount on his or her remuneration for the purchase, after May 31, 2016, of class A or class B shares issued by Fondaction, you must adjust the calculation of that employee's source deductions of income tax for each pay period in which such a share is acquired.
If you use the Source Deduction Table for Québec Income Tax (TP-1015.TI-V) to determine the amount of income tax to withhold, you must subtract from the remuneration paid to the employee 75% (rather than 100%) of the amount deducted from the employee's remuneration for the purchase of class A or class B shares issued by Fondaction.
If you use the formulas in the guide entitled Formulas to Calculate Source Deductions and Contributions (TP-1015.F-V) to determine the amount of income tax to withhold, you must take into account the changes to the formulas. For more information, refer to the guide.