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News

You will find in this section the most recent news and the latest developments concerning the firm as well as useful reminders. 

Capital Gains Inclusion Rate Increase

Currently, when an individual realizes a capital gain (or loss), 50% of the capital gain is taxable, while 50% of the capital loss is deductible.
 

Beginning June 25, 2024, the inclusion rate will increase from 50% to 66.7% for the portion of capital gains realized by an individual that exceeds $250,000.  As a result, individuals will now have to take into account two inclusion rates if their capital gains exceed the $250,000 threshold.
 

This $250,000 threshold will apply to capital gains realized in a year by an individual, directly or indirectly, through a partnership or a trust, after deducting, among other things, the individual's capital losses for the year and capital gains for which the lifetime capital gains exemption limit was claimed for the year. The $250,000 annual threshold for individuals will apply for 2024 as a whole—it will not be prorated according to the number of days.
 

However, net capital losses from previous years will still be deductible from taxable capital gains realized as of June 25, 2024. They will be adjusted to account for the capital gains subject to the new inclusion rate. In other words, a capital loss sustained before the rate increase will completely offset an equivalent capital gain realized after the increase.
 

The 66.7% inclusion rate will also apply to corporations and trusts, but, generally speaking, the $250,000 threshold will not.


Source: Capital Gains Inclusion Rate Increase | Revenu Québec (revenuquebec.ca)

February 6, 2024 episode of 'La Facture'

The Quebec CPA Order responded to questions from 'La Facture' last week (February 6, 2024) to shed light on a case of illegal accounting practice and to demonstrate the relevance of the CPA designation. In this episode, it is emphasized that the term 'accountant' is not regulated by law. 

Source (Episode in French only): Une comptable qui fait des ravages | La facture (radio-canada.ca)

Changes to Employment Insurance premium rate in 2024

In Quebec, the Employment Insurance (EI) premium rates for employees who are residents of Quebec will rise to $1.32 per $100 in earnings for 2024 (up from $1.27). The maximum annual Quebec employee contribution will increase to $834.24 (from $781.05) and the maximum annual employer contribution will increase to $1,167.94 (from $1,093.47).

Source: Canada Employment Insurance Commission confirms 2024 Employment Insurance premium rate - Canada.ca

Reduction in Québec Pension Plan Contributions for Workers 65 or older

Introduction of an option to stop paying QPP contributions for workers 65 or older

As of January 1, 2024, workers 65 or older can choose to stop contributing to the QPP, provided they receive a QPP or Canada Pension Plan (CPP) retirement pension. This measure will promote job retention and offer greater financial flexibility. However, for workers who make this election, the retirement pension supplement (This link will open a new tab), an additional amount their QPP contributions entitle them to, will no longer be added to their QPP retirement pension.

For employees, the election to stop making QPP contributions must be made using the Election to Stop Contributing to the QPP, or Revocation of an Election (form RR-50-V), which must be given to the employer and to Revenu Québec. The form will soon be available on Revenu Québec's website. Note that the election will also apply to the employer.

For self-employed workers or workers responsible for a family-type resource or an intermediate resource, the election to stop making QPP contributions must be made when they file their income tax return for the year.

Note that the election cannot come into effect before January 1, 2024.

End of the obligation to contribute to the QPP for workers over 72

As of 2024, the obligation to contribute to the QPP will cease for workers over 72, for all workers subject to the contribution provided for by the Act respecting the Québec Pension Plan.

Specifically, the obligation to contribute to the QPP for workers will cease as of the year they turn 73. Consequently, all wages paid and earnings received as of January 1 of the year a worker turns 73 will no longer be subject to QPP contributions.

Source: Reduction in Québec Pension Plan Contributions for Workers 65 or Older | Revenu Québec (revenuquebec.ca)

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