Published | Category : Income tax - businesses
Changes to the Capital régional et coopératif Desjardins
The Act constituting Capital régional et coopératif Desjardins and tax legislation will be amended to create a new class of shares. For a limited time, shareholders who acquire shares in this new class will be able to claim a non-refundable tax credit equal to 10% (maximum $15,000) of the value of shares in the existing class.
Shareholders will be able to acquire shares in the new class of capital stock, provided they:
- convert shares they have held in the existing class for at least seven years;
- have never requested the redemption of shares in the existing or new class; and
- have never purchased shares by agreement.
As part of this change to the capital stock of Capital régional et coopératif Desjardins, amendments will also be made to the fund's constituting act to allow the fund to proceed, on an exceptional basis, with three more annual capitalization periods exceeding its cumulative capitalization limit.
The tax credit rate for shares in the existing class of capital stock of Capital régional et coopératif Desjardins acquired after February 28, 2018, will be reduced from 40% to 35%.
For more information, see pages A.105 through A.114 of the Additional Information 2018‑2019 (PDF – 3.73 MB) published by the Ministère des Finances.