I-3 - Taxation Act

Section 1089 Disposition versions

2022-06-08

1089. The income earned in Québec, for a taxation year, by an individual contemplated in section 26 is his income as determined under section 28, taking into account only the following:

(a)  the amount by which the aggregate of the income from the duties of offices or employments performed by the individual in Québec and the income from the duties of offices or employments performed by the individual outside Canada if the individual was resident in Québec at the time the individual performed the duties exceeds the aggregate of the amounts that, if the individual is a foreign researcher within the meaning of section 737.19, a foreign researcher on a postdoctoral internship within the meaning of section 737.22.0.0.1, a foreign expert within the meaning of section 737.22.0.0.5, a foreign specialist within the meaning of section 737.22.0.1 or 737.22.0.4.1, a foreign professor within the meaning of section 737.22.0.5 or a foreign farm worker within the meaning of section 737.22.0.12, would be deductible in computing the individual’s taxable income for the year under any of sections 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7, 737.22.0.7 and 737.22.0.13 if the taxable income were determined under Part I;

(b)  income from businesses carried on by him in Canada that is attributable, in prescribed manner, to an establishment in Québec;

(c)  the taxable capital gains and allowable capital losses from dispositions of taxable Québec property, other than

i.  property described in paragraph c or d of section 1094, and

ii.  tax-agreement-protected property, within the meaning of section 1;

(d)  the portion that is reasonably attributable to the disposition of a Québec resource property within the meaning of the regulations or to expenses incurred in Québec of the amount by which the amount required by paragraph e of section 330 to be included in computing his income for the year exceeds any portion of that amount that was included in computing his income from a business carried on by him in Canada;

(e)  the portion that is reasonably attributable to the disposition of a Québec timber resource property within the meaning of the regulations of the amount by which the amounts that are required by sections 93 to 104 to be included in computing his income for the year in respect of the disposition of a timber resource property exceed any portion of those amounts that was included in computing his income from a business carried on by him in Canada;

(e.0.1)  the amounts that the individual received under the incentive program for farm workers established under the Act respecting the Ministère de l’Agriculture, des Pêcheries et de l’Alimentation (chapter M-14) according to the terms of the agreement referred to in Orders in Council 457-2020 dated 15 April 2020 and 517-2020 dated 13 May 2020 and that the individual would be required to include under paragraph e.2 of section 311 in computing the individual’s income for the year if the individual had been resident in Québec throughout the year;

(e.1)  the amount that the individual would be required to include under paragraph e.6 of section 311 in computing the individual’s income for the year if the individual had been resident in Québec throughout the year, up to the portion of that amount that may reasonably be attributed to the duties of an office or employment performed by the individual in Québec;

(f)  the excess of the amount which must, under section 684, be included in computing his income for the year in respect of the disposition of an income interest in a trust resident in Québec over the amount that would be deductible under section 665 in computing his income if he had been resident in Canada throughout the year;

(g)  the amount by which the income determined under paragraphs b and c of section 1092 in respect of the individual exceeds the aggregate of the amounts that, if the individual is a foreign researcher within the meaning of section 737.19, a foreign researcher on a postdoctoral internship within the meaning of section 737.22.0.0.1, a foreign expert within the meaning of section 737.22.0.0.5, a foreign specialist within the meaning of section 737.22.0.1 or 737.22.0.4.1 or a foreign professor within the meaning of section 737.22.0.5, would be deductible in computing the individual’s taxable income for the year under any of sections 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7 and 737.22.0.7 if the individual’s taxable income were determined under Part I;

(h)  the amount, which is attributable in prescribed manner to an establishment of a partnership in Québec, by which the amount required by section 610 to be included in computing the income of the individual for the year as proceeds of the disposition of a right to a share of the income or loss of the partnership under an agreement mentioned therein exceeds the amount that would be deductible in that respect under section 611 in computing his income if he had been resident in Canada throughout the year;

(i)  the losses from duties of an office or employment performed by the individual in Québec and the losses from businesses carried on by the individual in Canada, other than tax-agreement-protected businesses, within the meaning of section 1, which are attributable in prescribed manner to an establishment in Québec;

(j)  where, in the year, he carried on a business in Canada described in paragraphs a to g of section 363, the amounts in respect of any Québec resource property within the meaning of paragraph d that the individual would be required to include in computing his income for the year under Part I if he were resident in Québec, to the extent that such amounts are not already included in computing his income under paragraph b or d;

(k)  the amount that, if the individual had been resident in Québec throughout the year, would be included under section 968 or 968.1 in computing his income in respect of an interest in a life insurance policy issued or subscribed by an insurer, on the life of a person resident in Québec at the time of the issue or subscription; and

(l)  where the individual has been carrying on business in Canada in the year, the amounts relating to a Québec resource property within the meaning of subparagraph d, except where an amount in respect of the disposition of such property is deducted under section 412 or 418.6, to a Québec timber resource property within the meaning of subparagraph e, other than depreciable property, or to property, other than capital property, that is an immovable situated in Québec, to the extent that such amounts are not already included under subparagraph b, d, e or j in computing his income.

However, the income earned in Québec for a taxation year by an individual who is a foreign specialist, within the meaning of section 737.18.6, who is an eligible individual, within the meaning of section 737.22.0.9, or who is described in section 66 of the Act respecting international financial centres (chapter C-8.3) is the amount by which the particular amount that is determined in respect of the individual for the year under the first paragraph exceeds the aggregate of

(a)  the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s exemption period, within the meaning of section 737.18.6, in relation to an employment that is included in the year;

(b)  the product obtained by multiplying the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined in subparagraph 1 of the second paragraph of that section 65 in respect of that period; and

(c)  (subparagraph repealed);

(d)  the portion of the particular amount that is included in the amount determined in respect of the individual for the year under section 737.22.0.10.

For the purposes of the first paragraph, the amount that is determined in respect of an individual for a taxation year under the first paragraph is to be increased by the amount that would be included in computing the individual’s taxable income for the year under any of sections 726.43 to 726.43.2 if the taxable income were determined under Part I.

For the purposes of subparagraph a of the first paragraph, in the case of an individual employed as an aircraft pilot, the individual’s income from the duties of that employment performed by the individual in Québec, in relation to the individual’s income that is attributable to a flight (including a leg of a flight) and paid directly or indirectly by a person resident in Canada, is

(a)  all of the income attributable to the flight if the flight departs from a location in Québec and arrives at a location in Québec;

(b)  one-half of the income attributable to the flight if the flight departs from a location in Québec and arrives at a location outside Québec;

(c)  one-half of the income attributable to the flight if the flight departs from a location outside Québec and arrives at a location in Québec; or

(d)  none of the income attributable to the flight if the flight departs from a location outside Québec and arrives at a location outside Québec.

1972, c. 23, s. 813; 1973, c. 17, s. 124; 1975, c. 22, s. 242; 1978, c. 26, s. 210; 1982, c. 5, s. 196; 1984, c. 15, s. 236; 1986, c. 19, s. 196; 1987, c. 21, s. 82; 1988, c. 4, s. 140; 1993, c. 16, s. 344; 1994, c. 22, s. 333; 1995, c. 1, s. 181; 1997, c. 3, s. 71; 1997, c. 85, s. 298; 1999, c. 83, s. 237; 1999, c. 86, s. 86; 2000, c. 39, s. 220; 2001, c. 53, s. 242; 2002, c. 40, s. 229; 2003, c. 9, s. 385; 2004, c. 8, s. 185; 2004, c. 21, s. 448; 2005, c. 38, s. 305; 2006, c. 36, s. 215; 2010, c. 5, s. 185; 2011, c. 6, s. 214; 2010, c. 3, s. 295; 2013, c. 10, s. 150; 2015, c. 24, s. 152; 2017, c. 29, s. 204; 2021, c. 14, s. 186; 2021, c. 36, s. 148; 2022, c. 23, s. 127.

2021-12-10

1089. The income earned in Québec, for a taxation year, by an individual contemplated in section 26 is his income as determined under section 28, taking into account only the following:

(a)  the amount by which the aggregate of the income from the duties of offices or employments performed by the individual in Québec and the income from the duties of offices or employments performed by the individual outside Canada if the individual was resident in Québec at the time the individual performed the duties exceeds the aggregate of the amounts that, if the individual is an individual referred to in section 737.16.1, a foreign researcher within the meaning of section 737.19, a foreign researcher on a postdoctoral internship within the meaning of section 737.22.0.0.1, a foreign expert within the meaning of section 737.22.0.0.5, a foreign specialist within the meaning of section 737.22.0.1 or 737.22.0.4.1, a foreign professor within the meaning of section 737.22.0.5 or a foreign farm worker within the meaning of section 737.22.0.12, would be deductible in computing the individual’s taxable income for the year under any of sections 737.16.1, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7, 737.22.0.7 and 737.22.0.13 if the taxable income were determined under Part I;

(b)  income from businesses carried on by him in Canada that is attributable, in prescribed manner, to an establishment in Québec;

(c)  the taxable capital gains and allowable capital losses from dispositions of taxable Québec property, other than

i.  property described in paragraph c or d of section 1094, and

ii.  tax-agreement-protected property, within the meaning of section 1;

(d)  the portion that is reasonably attributable to the disposition of a Québec resource property within the meaning of the regulations or to expenses incurred in Québec of the amount by which the amount required by paragraph e of section 330 to be included in computing his income for the year exceeds any portion of that amount that was included in computing his income from a business carried on by him in Canada;

(e)  the portion that is reasonably attributable to the disposition of a Québec timber resource property within the meaning of the regulations of the amount by which the amounts that are required by sections 93 to 104 to be included in computing his income for the year in respect of the disposition of a timber resource property exceed any portion of those amounts that was included in computing his income from a business carried on by him in Canada;

(e.0.1)  the amounts that the individual received under the incentive program for farm workers established under the Act respecting the Ministère de l’Agriculture, des Pêcheries et de l’Alimentation (chapter M-14) according to the terms of the agreement referred to in Orders in Council 457-2020 dated 15 April 2020 and 517-2020 dated 13 May 2020 and that the individual would be required to include under paragraph e.2 of section 311 in computing the individual’s income for the year if the individual had been resident in Québec throughout the year;

(e.1)  the amount that the individual would be required to include under paragraph e.6 of section 311 in computing the individual’s income for the year if the individual had been resident in Québec throughout the year, up to the portion of that amount that may reasonably be attributed to the duties of an office or employment performed by the individual in Québec;

(f)  the excess of the amount which must, under section 684, be included in computing his income for the year in respect of the disposition of an income interest in a trust resident in Québec over the amount that would be deductible under section 665 in computing his income if he had been resident in Canada throughout the year;

(g)  the amount by which the income determined under paragraphs b and c of section 1092 in respect of the individual exceeds the aggregate of the amounts that, if the individual is an individual referred to in section 737.16.1, a foreign researcher within the meaning of section 737.19, a foreign researcher on a postdoctoral internship within the meaning of section 737.22.0.0.1, a foreign expert within the meaning of section 737.22.0.0.5, a foreign specialist within the meaning of section 737.22.0.1 or 737.22.0.4.1 or a foreign professor within the meaning of section 737.22.0.5, would be deductible in computing the individual’s taxable income for the year under any of sections 737.16.1, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7 and 737.22.0.7 if the individual’s taxable income were determined under Part I;

(h)  the amount, which is attributable in prescribed manner to an establishment of a partnership in Québec, by which the amount required by section 610 to be included in computing the income of the individual for the year as proceeds of the disposition of a right to a share of the income or loss of the partnership under an agreement mentioned therein exceeds the amount that would be deductible in that respect under section 611 in computing his income if he had been resident in Canada throughout the year;

(i)  the losses from duties of an office or employment performed by the individual in Québec and the losses from businesses carried on by the individual in Canada, other than tax-agreement-protected businesses, within the meaning of section 1, which are attributable in prescribed manner to an establishment in Québec;

(j)  where, in the year, he carried on a business in Canada described in paragraphs a to g of section 363, the amounts in respect of any Québec resource property within the meaning of paragraph d that the individual would be required to include in computing his income for the year under Part I if he were resident in Québec, to the extent that such amounts are not already included in computing his income under paragraph b or d;

(k)  the amount that, if the individual had been resident in Québec throughout the year, would be included under section 968 or 968.1 in computing his income in respect of an interest in a life insurance policy issued or subscribed by an insurer, on the life of a person resident in Québec at the time of the issue or subscription; and

(l)  where the individual has been carrying on business in Canada in the year, the amounts relating to a Québec resource property within the meaning of subparagraph d, except where an amount in respect of the disposition of such property is deducted under section 412 or 418.6, to a Québec timber resource property within the meaning of subparagraph e, other than depreciable property, or to property, other than capital property, that is an immovable situated in Québec, to the extent that such amounts are not already included under subparagraph b, d, e or j in computing his income.

However, the income earned in Québec for a taxation year by an individual who is a foreign specialist, within the meaning of section 737.18.6 or 737.18.29, who is an eligible individual, within the meaning of section 737.22.0.9, or who is described in section 66 of the Act respecting international financial centres (chapter C-8.3), is the amount by which the particular amount that is determined in respect of the individual for the year under the first paragraph exceeds the aggregate of

(a)  the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s exemption period, within the meaning of section 737.18.6, in relation to an employment that is included in the year;

(b)  the product obtained by multiplying the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined in subparagraph 1 of the second paragraph of that section 65 in respect of that period;

(c)  the product obtained by multiplying the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, within the meaning of section 737.18.29, in relation to an employment that is included in the year, by the percentage determined in subparagraph a of the second paragraph of section 737.18.34 in respect of that period; and

(d)  the portion of the particular amount that is included in the amount determined in respect of the individual for the year under section 737.22.0.10.

In addition, for the purposes of subparagraphs b and i of the first paragraph in the case of an individual who is a member of a partnership operating an international financial centre, within the meaning of section 6 of the Act respecting international financial centres, it shall be assumed that the individual had, for the year,

(a)  realized an additional income from a business the individual carried on in Canada, that is attributable to an establishment in Québec and equal to the second aggregate that is mentioned in the first paragraph of section 52 of that Act and determined in respect of the individual for the year under that paragraph; and

(b)  sustained an additional loss from a business the individual carried on in Canada, that is attributable to an establishment in Québec and equal to the first aggregate that is mentioned in the first paragraph of section 52 of that Act and determined in respect of the individual for the year under that paragraph.

For the purposes of the first paragraph, the amount that is determined in respect of an individual for a taxation year under the first paragraph is to be increased by the amount that would be included in computing the individual’s taxable income for the year under any of sections 726.43 to 726.43.2 if the taxable income were determined under Part I.

For the purposes of subparagraph a of the first paragraph, in the case of an individual employed as an aircraft pilot, the individual’s income from the duties of that employment performed by the individual in Québec, in relation to the individual’s income that is attributable to a flight (including a leg of a flight) and paid directly or indirectly by a person resident in Canada, is

(a)  all of the income attributable to the flight if the flight departs from a location in Québec and arrives at a location in Québec;

(b)  one-half of the income attributable to the flight if the flight departs from a location in Québec and arrives at a location outside Québec;

(c)  one-half of the income attributable to the flight if the flight departs from a location outside Québec and arrives at a location in Québec; or

(d)  none of the income attributable to the flight if the flight departs from a location outside Québec and arrives at a location outside Québec.

1972, c. 23, s. 813; 1973, c. 17, s. 124; 1975, c. 22, s. 242; 1978, c. 26, s. 210; 1982, c. 5, s. 196; 1984, c. 15, s. 236; 1986, c. 19, s. 196; 1987, c. 21, s. 82; 1988, c. 4, s. 140; 1993, c. 16, s. 344; 1994, c. 22, s. 333; 1995, c. 1, s. 181; 1997, c. 3, s. 71; 1997, c. 85, s. 298; 1999, c. 83, s. 237; 1999, c. 86, s. 86; 2000, c. 39, s. 220; 2001, c. 53, s. 242; 2002, c. 40, s. 229; 2003, c. 9, s. 385; 2004, c. 8, s. 185; 2004, c. 21, s. 448; 2005, c. 38, s. 305; 2006, c. 36, s. 215; 2010, c. 5, s. 185; 2011, c. 6, s. 214; 2010, c. 3, s. 295; 2013, c. 10, s. 150; 2015, c. 24, s. 152; 2017, c. 29, s. 204; 2021, c. 14, s. 186; 2021, c. 36, s. 148.

2021-06-02

1089. The income earned in Québec, for a taxation year, by an individual contemplated in section 26 is his income as determined under section 28, taking into account only the following:

(a)  the amount by which the aggregate of the income from the duties of offices or employments performed by the individual in Québec and the income from the duties of offices or employments performed by the individual outside Canada if the individual was resident in Québec at the time the individual performed the duties exceeds the aggregate of the amounts that, if the individual is an individual referred to in section 737.16.1, a foreign researcher within the meaning of section 737.19, a foreign researcher on a postdoctoral internship within the meaning of section 737.22.0.0.1, a foreign expert within the meaning of section 737.22.0.0.5, a foreign specialist within the meaning of section 737.22.0.1 or 737.22.0.4.1, a foreign professor within the meaning of section 737.22.0.5 or a foreign farm worker within the meaning of section 737.22.0.12, would be deductible in computing the individual’s taxable income for the year under any of sections 737.16.1, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7, 737.22.0.7 and 737.22.0.13 if the taxable income were determined under Part I;

(b)  income from businesses carried on by him in Canada that is attributable, in prescribed manner, to an establishment in Québec;

(c)  the taxable capital gains and allowable capital losses from dispositions of taxable Québec property, other than

i.  property described in paragraph c or d of section 1094, and

ii.  tax-agreement-protected property, within the meaning of section 1;

(d)  the portion that is reasonably attributable to the disposition of a Québec resource property within the meaning of the regulations or to expenses incurred in Québec of the amount by which the amount required by paragraph e of section 330 to be included in computing his income for the year exceeds any portion of that amount that was included in computing his income from a business carried on by him in Canada;

(e)  the portion that is reasonably attributable to the disposition of a Québec timber resource property within the meaning of the regulations of the amount by which the amounts that are required by sections 93 to 104 to be included in computing his income for the year in respect of the disposition of a timber resource property exceed any portion of those amounts that was included in computing his income from a business carried on by him in Canada;

(e.1)  the amount that the individual would be required to include under paragraph e.6 of section 311 in computing the individual’s income for the year if the individual had been resident in Québec throughout the year, up to the portion of that amount that may reasonably be attributed to the duties of an office or employment performed by the individual in Québec;

(f)  the excess of the amount which must, under section 684, be included in computing his income for the year in respect of the disposition of an income interest in a trust resident in Québec over the amount that would be deductible under section 665 in computing his income if he had been resident in Canada throughout the year;

(g)  the amount by which the income determined under paragraphs b and c of section 1092 in respect of the individual exceeds the aggregate of the amounts that, if the individual is an individual referred to in section 737.16.1, a foreign researcher within the meaning of section 737.19, a foreign researcher on a postdoctoral internship within the meaning of section 737.22.0.0.1, a foreign expert within the meaning of section 737.22.0.0.5, a foreign specialist within the meaning of section 737.22.0.1 or 737.22.0.4.1 or a foreign professor within the meaning of section 737.22.0.5, would be deductible in computing the individual’s taxable income for the year under any of sections 737.16.1, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7 and 737.22.0.7 if the individual’s taxable income were determined under Part I;

(h)  the amount, which is attributable in prescribed manner to an establishment of a partnership in Québec, by which the amount required by section 610 to be included in computing the income of the individual for the year as proceeds of the disposition of a right to a share of the income or loss of the partnership under an agreement mentioned therein exceeds the amount that would be deductible in that respect under section 611 in computing his income if he had been resident in Canada throughout the year;

(i)  the losses from duties of an office or employment performed by the individual in Québec and the losses from businesses carried on by the individual in Canada, other than tax-agreement-protected businesses, within the meaning of section 1, which are attributable in prescribed manner to an establishment in Québec;

(j)  where, in the year, he carried on a business in Canada described in paragraphs a to g of section 363, the amounts in respect of any Québec resource property within the meaning of paragraph d that the individual would be required to include in computing his income for the year under Part I if he were resident in Québec, to the extent that such amounts are not already included in computing his income under paragraph b or d;

(k)  the amount that, if the individual had been resident in Québec throughout the year, would be included under section 968 or 968.1 in computing his income in respect of an interest in a life insurance policy issued or subscribed by an insurer, on the life of a person resident in Québec at the time of the issue or subscription; and

(l)  where the individual has been carrying on business in Canada in the year, the amounts relating to a Québec resource property within the meaning of subparagraph d, except where an amount in respect of the disposition of such property is deducted under section 412 or 418.6, to a Québec timber resource property within the meaning of subparagraph e, other than depreciable property, or to property, other than capital property, that is an immovable situated in Québec, to the extent that such amounts are not already included under subparagraph b, d, e or j in computing his income.

However, the income earned in Québec for a taxation year by an individual who is a foreign specialist, within the meaning of section 737.18.6 or 737.18.29, who is an eligible individual, within the meaning of section 737.22.0.9, or who is described in section 66 of the Act respecting international financial centres (chapter C-8.3), is the amount by which the particular amount that is determined in respect of the individual for the year under the first paragraph exceeds the aggregate of

(a)  the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s exemption period, within the meaning of section 737.18.6, in relation to an employment that is included in the year;

(b)  the product obtained by multiplying the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined in subparagraph 1 of the second paragraph of that section 65 in respect of that period;

(c)  the product obtained by multiplying the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, within the meaning of section 737.18.29, in relation to an employment that is included in the year, by the percentage determined in subparagraph a of the second paragraph of section 737.18.34 in respect of that period; and

(d)  the portion of the particular amount that is included in the amount determined in respect of the individual for the year under section 737.22.0.10.

In addition, for the purposes of subparagraphs b and i of the first paragraph in the case of an individual who is a member of a partnership operating an international financial centre, within the meaning of section 6 of the Act respecting international financial centres, it shall be assumed that the individual had, for the year,

(a)  realized an additional income from a business the individual carried on in Canada, that is attributable to an establishment in Québec and equal to the second aggregate that is mentioned in the first paragraph of section 52 of that Act and determined in respect of the individual for the year under that paragraph; and

(b)  sustained an additional loss from a business the individual carried on in Canada, that is attributable to an establishment in Québec and equal to the first aggregate that is mentioned in the first paragraph of section 52 of that Act and determined in respect of the individual for the year under that paragraph.

For the purposes of the first paragraph, the amount that is determined in respect of an individual for a taxation year under the first paragraph is to be increased by the amount that would be included in computing the individual’s taxable income for the year under any of sections 726.43 to 726.43.2 if the taxable income were determined under Part I.

For the purposes of subparagraph a of the first paragraph, in the case of an individual employed as an aircraft pilot, the individual’s income from the duties of that employment performed by the individual in Québec, in relation to the individual’s income that is attributable to a flight (including a leg of a flight) and paid directly or indirectly by a person resident in Canada, is

(a)  all of the income attributable to the flight if the flight departs from a location in Québec and arrives at a location in Québec;

(b)  one-half of the income attributable to the flight if the flight departs from a location in Québec and arrives at a location outside Québec;

(c)  one-half of the income attributable to the flight if the flight departs from a location outside Québec and arrives at a location in Québec; or

(d)  none of the income attributable to the flight if the flight departs from a location outside Québec and arrives at a location outside Québec.

1972, c. 23, s. 813; 1973, c. 17, s. 124; 1975, c. 22, s. 242; 1978, c. 26, s. 210; 1982, c. 5, s. 196; 1984, c. 15, s. 236; 1986, c. 19, s. 196; 1987, c. 21, s. 82; 1988, c. 4, s. 140; 1993, c. 16, s. 344; 1994, c. 22, s. 333; 1995, c. 1, s. 181; 1997, c. 3, s. 71; 1997, c. 85, s. 298; 1999, c. 83, s. 237; 1999, c. 86, s. 86; 2000, c. 39, s. 220; 2001, c. 53, s. 242; 2002, c. 40, s. 229; 2003, c. 9, s. 385; 2004, c. 8, s. 185; 2004, c. 21, s. 448; 2005, c. 38, s. 305; 2006, c. 36, s. 215; 2010, c. 5, s. 185; 2011, c. 6, s. 214; 2010, c. 3, s. 295; 2013, c. 10, s. 150; 2015, c. 24, s. 152; 2017, c. 29, s. 204; 2021, c. 14, s. 186.

2017-12-07

1089. The income earned in Québec, for a taxation year, by an individual contemplated in section 26 is his income as determined under section 28, taking into account only the following:

(a)  the amount by which the aggregate of the income from the duties of offices or employments performed by the individual in Québec and the income from the duties of offices or employments performed by the individual outside Canada if the individual was resident in Québec at the time the individual performed the duties exceeds the aggregate of the amounts that, if the individual is an individual referred to in section 737.16.1, a foreign researcher within the meaning of section 737.19, a foreign researcher on a postdoctoral internship within the meaning of section 737.22.0.0.1, a foreign expert within the meaning of section 737.22.0.0.5, a foreign specialist within the meaning of section 737.22.0.1 or 737.22.0.4.1, a foreign professor within the meaning of section 737.22.0.5 or a foreign farm worker within the meaning of section 737.22.0.12, would be deductible in computing the individual’s taxable income for the year under any of sections 737.16.1, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7, 737.22.0.7 and 737.22.0.13 if the taxable income were determined under Part I;

(b)  income from businesses carried on by him in Canada that is attributable, in prescribed manner, to an establishment in Québec;

(c)  the taxable capital gains and allowable capital losses from dispositions of taxable Québec property, other than

i.  property described in paragraph c or d of section 1094, and

ii.  tax-agreement-protected property, within the meaning of section 1;

(d)  the portion that is reasonably attributable to the disposition of a Québec resource property within the meaning of the regulations or to expenses incurred in Québec of the amount by which the amount required by paragraph e of section 330 to be included in computing his income for the year exceeds any portion of that amount that was included in computing his income from a business carried on by him in Canada;

(e)  the portion that is reasonably attributable to the disposition of a Québec timber resource property within the meaning of the regulations of the amount by which the amounts that are required by sections 93 to 104 to be included in computing his income for the year in respect of the disposition of a timber resource property exceed any portion of those amounts that was included in computing his income from a business carried on by him in Canada;

(e.1)  the amount that the individual would be required to include under paragraph e.6 of section 311 in computing the individual’s income for the year if the individual had been resident in Québec throughout the year, up to the portion of that amount that may reasonably be attributed to the duties of an office or employment performed by the individual in Québec;

(f)  the excess of the amount which must, under section 684, be included in computing his income for the year in respect of the disposition of an income interest in a trust resident in Québec over the amount that would be deductible under section 665 in computing his income if he had been resident in Canada throughout the year;

(g)  the amount by which the income determined under paragraphs b and c of section 1092 in respect of the individual exceeds the aggregate of the amounts that, if the individual is an individual referred to in section 737.16.1, a foreign researcher within the meaning of section 737.19, a foreign researcher on a postdoctoral internship within the meaning of section 737.22.0.0.1, a foreign expert within the meaning of section 737.22.0.0.5, a foreign specialist within the meaning of section 737.22.0.1 or 737.22.0.4.1 or a foreign professor within the meaning of section 737.22.0.5, would be deductible in computing the individual’s taxable income for the year under any of sections 737.16.1, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7 and 737.22.0.7 if the individual’s taxable income were determined under Part I;

(h)  the amount, which is attributable in prescribed manner to an establishment of a partnership in Québec, by which the amount required by section 610 to be included in computing the income of the individual for the year as proceeds of the disposition of a right to a share of the income or loss of the partnership under an agreement mentioned therein exceeds the amount that would be deductible in that respect under section 611 in computing his income if he had been resident in Canada throughout the year;

(i)  the losses from duties of an office or employment performed by the individual in Québec and the losses from businesses carried on by the individual in Canada, other than tax-agreement-protected businesses, within the meaning of section 1, which are attributable in prescribed manner to an establishment in Québec;

(j)  where, in the year, he carried on a business in Canada described in paragraphs a to g of section 363, the amounts in respect of any Québec resource property within the meaning of paragraph d that the individual would be required to include in computing his income for the year under Part I if he were resident in Québec, to the extent that such amounts are not already included in computing his income under paragraph b or d;

(k)  the amount that, if the individual had been resident in Québec throughout the year, would be included under section 968 or 968.1 in computing his income in respect of an interest in a life insurance policy issued or subscribed by an insurer, on the life of a person resident in Québec at the time of the issue or subscription; and

(l)  where the individual has been carrying on business in Canada in the year, the amounts relating to a Québec resource property within the meaning of subparagraph d, except where an amount in respect of the disposition of such property is deducted under section 412 or 418.6, to a Québec timber resource property within the meaning of subparagraph e, other than depreciable property, or to property, other than capital property, that is an immovable situated in Québec, to the extent that such amounts are not already included under subparagraph b, d, e or j in computing his income.

However, the income earned in Québec for a taxation year by an individual who is a foreign specialist, within the meaning of section 737.18.6 or 737.18.29, who is an eligible individual, within the meaning of section 737.22.0.9, or who is described in section 66 of the Act respecting international financial centres (chapter C-8.3), is the amount by which the particular amount that is determined in respect of the individual for the year under the first paragraph exceeds the aggregate of

(a)  the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s exemption period, within the meaning of section 737.18.6, in relation to an employment that is included in the year;

(b)  the product obtained by multiplying the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined in subparagraph 1 of the second paragraph of that section 65 in respect of that period;

(c)  the product obtained by multiplying the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, within the meaning of section 737.18.29, in relation to an employment that is included in the year, by the percentage determined in subparagraph a of the second paragraph of section 737.18.34 in respect of that period; and

(d)  the portion of the particular amount that is included in the amount determined in respect of the individual for the year under section 737.22.0.10.

In addition, for the purposes of subparagraphs b and i of the first paragraph in the case of an individual who is a member of a partnership operating an international financial centre, within the meaning of section 6 of the Act respecting international financial centres, it shall be assumed that the individual had, for the year,

(a)  realized an additional income from a business the individual carried on in Canada, that is attributable to an establishment in Québec and equal to the second aggregate that is mentioned in the first paragraph of section 52 of that Act and determined in respect of the individual for the year under that paragraph; and

(b)  sustained an additional loss from a business the individual carried on in Canada, that is attributable to an establishment in Québec and equal to the first aggregate that is mentioned in the first paragraph of section 52 of that Act and determined in respect of the individual for the year under that paragraph.

For the purposes of the first paragraph, the amount that is determined in respect of an individual for a taxation year under the first paragraph is to be increased by the amount that would be included in computing the individual’s taxable income for the year under section 726.35 or 726.43 and reduced by the amount that the individual could deduct in computing the individual’s taxable income for the year under section 726.33, if the taxable income were determined under Part I.

For the purposes of subparagraph a of the first paragraph, in the case of an individual employed as an aircraft pilot, the individual’s income from the duties of that employment performed by the individual in Québec, in relation to the individual’s income that is attributable to a flight (including a leg of a flight) and paid directly or indirectly by a person resident in Canada, is

(a)  all of the income attributable to the flight if the flight departs from a location in Québec and arrives at a location in Québec;

(b)  one-half of the income attributable to the flight if the flight departs from a location in Québec and arrives at a location outside Québec;

(c)  one-half of the income attributable to the flight if the flight departs from a location outside Québec and arrives at a location in Québec; or

(d)  none of the income attributable to the flight if the flight departs from a location outside Québec and arrives at a location outside Québec.

1972, c. 23, s. 813; 1973, c. 17, s. 124; 1975, c. 22, s. 242; 1978, c. 26, s. 210; 1982, c. 5, s. 196; 1984, c. 15, s. 236; 1986, c. 19, s. 196; 1987, c. 21, s. 82; 1988, c. 4, s. 140; 1993, c. 16, s. 344; 1994, c. 22, s. 333; 1995, c. 1, s. 181; 1997, c. 3, s. 71; 1997, c. 85, s. 298; 1999, c. 83, s. 237; 1999, c. 86, s. 86; 2000, c. 39, s. 220; 2001, c. 53, s. 242; 2002, c. 40, s. 229; 2003, c. 9, s. 385; 2004, c. 8, s. 185; 2004, c. 21, s. 448; 2005, c. 38, s. 305; 2006, c. 36, s. 215; 2010, c. 5, s. 185; 2011, c. 6, s. 214; 2010, c. 3, s. 295; 2013, c. 10, s. 150; 2015, c. 24, s. 152; 2017, c. 29, s. 204.

2015-10-26

1089. The income earned in Québec, for a taxation year, by an individual contemplated in section 26 is his income as determined under section 28, taking into account only the following:

(a)  the amount by which the aggregate of the income from the duties of offices or employments performed by the individual in Québec and the income from the duties of offices or employments performed by the individual outside Canada if the individual was resident in Québec at the time the individual performed the duties exceeds the aggregate of the amounts that, if the individual is an individual referred to in section 737.16.1, a foreign researcher within the meaning of section 737.19, a foreign researcher on a postdoctoral internship within the meaning of section 737.22.0.0.1, a foreign expert within the meaning of section 737.22.0.0.5, a foreign specialist within the meaning of section 737.22.0.1 or 737.22.0.4.1, a foreign professor within the meaning of section 737.22.0.5 or a foreign farm worker within the meaning of section 737.22.0.12, would be deductible in computing the individual’s taxable income for the year under any of sections 737.16.1, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7, 737.22.0.7 and 737.22.0.13 if the taxable income were determined under Part I;

(b)  income from businesses carried on by him in Canada that is attributable, in prescribed manner, to an establishment in Québec;

(c)  the taxable capital gains and allowable capital losses from dispositions of taxable Québec property, other than

i.  property described in paragraph c or d of section 1094, and

ii.  tax-agreement-protected property, within the meaning of section 1;

(d)  the portion that is reasonably attributable to the disposition of a Québec resource property within the meaning of the regulations or to expenses incurred in Québec of the amount by which the amount required by paragraph e of section 330 to be included in computing his income for the year exceeds any portion of that amount that was included in computing his income from a business carried on by him in Canada;

(e)  the portion that is reasonably attributable to the disposition of a Québec timber resource property within the meaning of the regulations of the amount by which the amounts that are required by sections 93 to 104 to be included in computing his income for the year in respect of the disposition of a timber resource property exceed any portion of those amounts that was included in computing his income from a business carried on by him in Canada;

(e.1)  the amount that the individual would be required to include under paragraph e.6 of section 311 in computing the individual’s income for the year if the individual had been resident in Québec throughout the year, up to the portion of that amount that may reasonably be attributed to the duties of an office or employment performed by the individual in Québec;

(f)  the excess of the amount which must, under section 684, be included in computing his income for the year in respect of the disposition of an income interest in a trust resident in Québec over the amount that would be deductible under section 665 in computing his income if he had been resident in Canada throughout the year;

(g)  the amount by which the income determined under paragraphs b and c of section 1092 in respect of the individual exceeds the aggregate of the amounts that, if the individual is an individual referred to in section 737.16.1, a foreign researcher within the meaning of section 737.19, a foreign researcher on a postdoctoral internship within the meaning of section 737.22.0.0.1, a foreign expert within the meaning of section 737.22.0.0.5, a foreign specialist within the meaning of section 737.22.0.1 or 737.22.0.4.1 or a foreign professor within the meaning of section 737.22.0.5, would be deductible in computing the individual’s taxable income for the year under any of sections 737.16.1, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7 and 737.22.0.7 if the individual’s taxable income were determined under Part I;

(h)  the amount, which is attributable in prescribed manner to an establishment of a partnership in Québec, by which the amount required by section 610 to be included in computing the income of the individual for the year as proceeds of the disposition of a right to a share of the income or loss of the partnership under an agreement mentioned therein exceeds the amount that would be deductible in that respect under section 611 in computing his income if he had been resident in Canada throughout the year;

(i)  the losses from duties of an office or employment performed by the individual in Québec and the losses from businesses carried on by the individual in Canada, other than tax-agreement-protected businesses, within the meaning of section 1, which are attributable in prescribed manner to an establishment in Québec;

(j)  where, in the year, he carried on a business in Canada described in paragraphs a to g of section 363, the amounts in respect of any Québec resource property within the meaning of paragraph d that the individual would be required to include in computing his income for the year under Part I if he were resident in Québec, to the extent that such amounts are not already included in computing his income under paragraph b or d;

(k)  the amount that, if the individual had been resident in Québec throughout the year, would be included under section 968 or 968.1 in computing his income in respect of an interest in a life insurance policy issued or subscribed by an insurer, on the life of a person resident in Québec at the time of the issue or subscription; and

(l)  where the individual has been carrying on business in Canada in the year, the amounts relating to a Québec resource property within the meaning of subparagraph d, except where an amount in respect of the disposition of such property is deducted under section 412 or 418.6, to a Québec timber resource property within the meaning of subparagraph e, other than depreciable property, or to property, other than capital property, that is an immovable situated in Québec, to the extent that such amounts are not already included under subparagraph b, d, e or j in computing his income.

However, the income earned in Québec for a taxation year by an individual who is a foreign specialist, within the meaning of section 737.18.6 or 737.18.29, who is an eligible individual, within the meaning of section 737.22.0.9, or who is described in section 66 of the Act respecting international financial centres (chapter C-8.3), is the amount by which the particular amount that is determined in respect of the individual for the year under the first paragraph exceeds the aggregate of

(a)  the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s exemption period, within the meaning of section 737.18.6, in relation to an employment that is included in the year;

(b)  the product obtained by multiplying the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined in subparagraph 1 of the second paragraph of that section 65 in respect of that period;

(c)  the product obtained by multiplying the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, within the meaning of section 737.18.29, in relation to an employment that is included in the year, by the percentage determined in subparagraph a of the second paragraph of section 737.18.34 in respect of that period; and

(d)  the portion of the particular amount that is included in the amount determined in respect of the individual for the year under section 737.22.0.10.

In addition, for the purposes of subparagraphs b and i of the first paragraph in the case of an individual who is a member of a partnership operating an international financial centre, within the meaning of section 6 of the Act respecting international financial centres, it shall be assumed that the individual had, for the year,

(a)  realized an additional income from a business the individual carried on in Canada, that is attributable to an establishment in Québec and equal to the second aggregate that is mentioned in the first paragraph of section 52 of that Act and determined in respect of the individual for the year under that paragraph; and

(b)  sustained an additional loss from a business the individual carried on in Canada, that is attributable to an establishment in Québec and equal to the first aggregate that is mentioned in the first paragraph of section 52 of that Act and determined in respect of the individual for the year under that paragraph.

For the purposes of the first paragraph, if an individual is, in a taxation year, a certified forest producer under the Sustainable Forest Development Act (chapter A-18.1) in respect of a private woodlot, or is a member of a partnership that is such a certified forest producer in respect of a private woodlot, the particular amount that is determined in respect of the individual for the year under the first paragraph is to be increased by the amount that would be included in computing the individual’s taxable income for the year under section 726.35 and reduced by the amount that the individual could deduct in computing the individual’s taxable income for the year under section 726.33, if the taxable income were determined under Part I.

For the purposes of subparagraph a of the first paragraph, in the case of an individual employed as an aircraft pilot, the individual’s income from the duties of that employment performed by the individual in Québec, in relation to the individual’s income that is attributable to a flight (including a leg of a flight) and paid directly or indirectly by a person resident in Canada, is

(a)  all of the income attributable to the flight if the flight departs from a location in Québec and arrives at a location in Québec;

(b)  one-half of the income attributable to the flight if the flight departs from a location in Québec and arrives at a location outside Québec;

(c)  one-half of the income attributable to the flight if the flight departs from a location outside Québec and arrives at a location in Québec; or

(d)  none of the income attributable to the flight if the flight departs from a location outside Québec and arrives at a location outside Québec.

1972, c. 23, s. 813; 1973, c. 17, s. 124; 1975, c. 22, s. 242; 1978, c. 26, s. 210; 1982, c. 5, s. 196; 1984, c. 15, s. 236; 1986, c. 19, s. 196; 1987, c. 21, s. 82; 1988, c. 4, s. 140; 1993, c. 16, s. 344; 1994, c. 22, s. 333; 1995, c. 1, s. 181; 1997, c. 3, s. 71; 1997, c. 85, s. 298; 1999, c. 83, s. 237; 1999, c. 86, s. 86; 2000, c. 39, s. 220; 2001, c. 53, s. 242; 2002, c. 40, s. 229; 2003, c. 9, s. 385; 2004, c. 8, s. 185; 2004, c. 21, s. 448; 2005, c. 38, s. 305; 2006, c. 36, s. 215; 2010, c. 5, s. 185; 2011, c. 6, s. 214; 2010, c. 3, s. 295; 2013, c. 10, s. 150; 2015, c. 24, s. 152.

2013-06-05

1089. The income earned in Québec, for a taxation year, by an individual contemplated in section 26 is his income as determined under section 28, taking into account only the following:

(a)  the amount by which the aggregate of the income from the duties of offices or employments performed by the individual in Québec and the income from the duties of offices or employments performed by the individual outside Canada if the individual was resident in Québec at the time the individual performed the duties exceeds the aggregate of the amounts that, if the individual is an individual referred to in section 737.16.1, a foreign researcher within the meaning of section 737.19, a foreign researcher on a postdoctoral internship within the meaning of section 737.22.0.0.1, a foreign expert within the meaning of section 737.22.0.0.5, a foreign specialist within the meaning of section 737.22.0.1 or 737.22.0.4.1, a foreign professor within the meaning of section 737.22.0.5 or a foreign farm worker within the meaning of section 737.22.0.12, would be deductible in computing the individual’s taxable income for the year under any of sections 737.16.1, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7, 737.22.0.7 and 737.22.0.13 if the taxable income were determined under Part I;

(b)  income from businesses carried on by him in Canada that is attributable, in prescribed manner, to an establishment in Québec;

(c)  the taxable capital gains and allowable capital losses from dispositions of taxable Québec property, other than

i.  property described in paragraph c or d of section 1094, and

ii.  tax-agreement-protected property, within the meaning of section 1;

(d)  the portion that is reasonably attributable to the disposition of a Québec resource property within the meaning of the regulations or to expenses incurred in Québec of the amount by which the amount required by paragraph e of section 330 to be included in computing his income for the year exceeds any portion of that amount that was included in computing his income from a business carried on by him in Canada;

(e)  the portion that is reasonably attributable to the disposition of a Québec timber resource property within the meaning of the regulations of the amount by which the amounts that are required by sections 93 to 104 to be included in computing his income for the year in respect of the disposition of a timber resource property exceed any portion of those amounts that was included in computing his income from a business carried on by him in Canada;

(e.1)  the amount that the individual would be required to include under paragraph e.6 of section 311 in computing the individual’s income for the year if the individual had been resident in Québec throughout the year, up to the portion of that amount that may reasonably be attributed to the duties of an office or employment performed by the individual in Québec;

(f)  the excess of the amount which must, under section 684, be included in computing his income for the year in respect of the disposition of an income interest in a trust resident in Québec over the amount that would be deductible under section 665 in computing his income if he had been resident in Canada throughout the year;

(g)  the amount by which the income determined under paragraphs b and c of section 1092 in respect of the individual exceeds the aggregate of the amounts that, if the individual is an individual referred to in section 737.16.1, a foreign researcher within the meaning of section 737.19, a foreign researcher on a postdoctoral internship within the meaning of section 737.22.0.0.1, a foreign expert within the meaning of section 737.22.0.0.5, a foreign specialist within the meaning of section 737.22.0.1 or 737.22.0.4.1 or a foreign professor within the meaning of section 737.22.0.5, would be deductible in computing the individual’s taxable income for the year under any of sections 737.16.1, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.4.7 and 737.22.0.7 if the individual’s taxable income were determined under Part I;

(h)  the amount, which is attributable in prescribed manner to an establishment of a partnership in Québec, by which the amount required by section 610 to be included in computing the income of the individual for the year as proceeds of the disposition of a right to a share of the income or loss of the partnership under an agreement mentioned therein exceeds the amount that would be deductible in that respect under section 611 in computing his income if he had been resident in Canada throughout the year;

(i)  the losses from duties of an office or employment performed by the individual in Québec and the losses from businesses carried on by the individual in Canada, other than tax-agreement-protected businesses, within the meaning of section 1, which are attributable in prescribed manner to an establishment in Québec;

(j)  where, in the year, he carried on a business in Canada described in paragraphs a to g of section 363, the amounts in respect of any Québec resource property within the meaning of paragraph d that the individual would be required to include in computing his income for the year under Part I if he were resident in Québec, to the extent that such amounts are not already included in computing his income under paragraph b or d;

(k)  the amount that, if the individual had been resident in Québec throughout the year, would be included under section 968 or 968.1 in computing his income in respect of an interest in a life insurance policy issued or subscribed by an insurer, on the life of a person resident in Québec at the time of the issue or subscription; and

(l)  where the individual has been carrying on business in Canada in the year, the amounts relating to a Québec resource property within the meaning of subparagraph d, except where an amount in respect of the disposition of such property is deducted under section 412 or 418.6, to a Québec timber resource property within the meaning of subparagraph e, other than depreciable property, or to property, other than capital property, that is an immovable situated in Québec, to the extent that such amounts are not already included under subparagraph b, d, e or j in computing his income.

However, the income earned in Québec for a taxation year by an individual who is a foreign specialist, within the meaning of section 737.18.6 or 737.18.29, who is an eligible individual, within the meaning of section 737.22.0.9, or who is described in section 66 of the Act respecting international financial centres (chapter C-8.3), is the amount by which the particular amount that is determined in respect of the individual for the year under the first paragraph exceeds the aggregate of

(a)  the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s exemption period, within the meaning of section 737.18.6, in relation to an employment that is included in the year;

(b)  the product obtained by multiplying the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined in subparagraph 1 of the second paragraph of that section 65 in respect of that period;

(c)  the product obtained by multiplying the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, within the meaning of section 737.18.29, in relation to an employment that is included in the year, by the percentage determined in subparagraph a of the second paragraph of section 737.18.34 in respect of that period; and

(d)  the portion of the particular amount that is included in the amount determined in respect of the individual for the year under section 737.22.0.10.

In addition, for the purposes of subparagraphs b and i of the first paragraph in the case of an individual who is a member of a partnership operating an international financial centre, within the meaning of section 6 of the Act respecting international financial centres, it shall be assumed that the individual had, for the year,

(a)  realized an additional income from a business the individual carried on in Canada, that is attributable to an establishment in Québec and equal to the second aggregate that is mentioned in the first paragraph of section 52 of that Act and determined in respect of the individual for the year under that paragraph; and

(b)  sustained an additional loss from a business the individual carried on in Canada, that is attributable to an establishment in Québec and equal to the first aggregate that is mentioned in the first paragraph of section 52 of that Act and determined in respect of the individual for the year under that paragraph.

For the purposes of the first paragraph, if an individual is, in a taxation year, a certified forest producer under the Sustainable Forest Development Act (chapter A-18.1) in respect of a private woodlot, or is a member of a partnership that is such a certified forest producer in respect of a private woodlot, the particular amount that is determined in respect of the individual for the year under the first paragraph is to be increased by the amount that would be included in computing the individual’s taxable income for the year under section 726.35 and reduced by the amount that the individual could deduct in computing the individual’s taxable income for the year under section 726.33, if the taxable income were determined under Part I.

1972, c. 23, s. 813; 1973, c. 17, s. 124; 1975, c. 22, s. 242; 1978, c. 26, s. 210; 1982, c. 5, s. 196; 1984, c. 15, s. 236; 1986, c. 19, s. 196; 1987, c. 21, s. 82; 1988, c. 4, s. 140; 1993, c. 16, s. 344; 1994, c. 22, s. 333; 1995, c. 1, s. 181; 1997, c. 3, s. 71; 1997, c. 85, s. 298; 1999, c. 83, s. 237; 1999, c. 86, s. 86; 2000, c. 39, s. 220; 2001, c. 53, s. 242; 2002, c. 40, s. 229; 2003, c. 9, s. 385; 2004, c. 8, s. 185; 2004, c. 21, s. 448; 2005, c. 38, s. 305; 2006, c. 36, s. 215; 2010, c. 5, s. 185; 2011, c. 6, s. 214; 2010, c. 3, s. 295; 2013, c. 10, s. 150.

2013-04-01

1089. The income earned in Québec, for a taxation year, by an individual contemplated in section 26 is his income as determined under section 28, taking into account only the following:

(a)  the amount by which the aggregate of the income from the duties of offices or employments performed by the individual in Québec and the income from the duties of offices or employments performed by the individual outside Canada if the individual was resident in Québec at the time the individual performed the duties exceeds the aggregate of the amounts that, if the individual is an individual referred to in section 737.16.1, a foreign researcher within the meaning of section 737.19, a foreign researcher on a postdoctoral internship within the meaning of section 737.22.0.0.1, a foreign expert within the meaning of section 737.22.0.0.5, a foreign specialist within the meaning of section 737.22.0.1, a foreign professor within the meaning of section 737.22.0.5 or a foreign farm worker within the meaning of section 737.22.0.12, would be deductible in computing the individual’s taxable income for the year under any of sections 737.16.1, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.7 and 737.22.0.13 if the taxable income were determined under Part I;

(b)  income from businesses carried on by him in Canada that is attributable, in prescribed manner, to an establishment in Québec;

(c)  the taxable capital gains and allowable capital losses from dispositions of taxable Québec property, other than

i.  property described in paragraph c or d of section 1094, and

ii.  tax-agreement-protected property, within the meaning of section 1;

(d)  the portion that is reasonably attributable to the disposition of a Québec resource property within the meaning of the regulations or to expenses incurred in Québec of the amount by which the amount required by paragraph e of section 330 to be included in computing his income for the year exceeds any portion of that amount that was included in computing his income from a business carried on by him in Canada;

(e)  the portion that is reasonably attributable to the disposition of a Québec timber resource property within the meaning of the regulations of the amount by which the amounts that are required by sections 93 to 104 to be included in computing his income for the year in respect of the disposition of a timber resource property exceed any portion of those amounts that was included in computing his income from a business carried on by him in Canada;

(e.1)  the amount that the individual would be required to include under paragraph e.6 of section 311 in computing the individual’s income for the year if the individual had been resident in Québec throughout the year, up to the portion of that amount that may reasonably be attributed to the duties of an office or employment performed by the individual in Québec;

(f)  the excess of the amount which must, under section 684, be included in computing his income for the year in respect of the disposition of an income interest in a trust resident in Québec over the amount that would be deductible under section 665 in computing his income if he had been resident in Canada throughout the year;

(g)  the amount by which the income determined under paragraphs b and c of section 1092 in respect of the individual exceeds the aggregate of the amounts that, if the individual is an individual referred to in section 737.16.1, a foreign researcher within the meaning of section 737.19, a foreign researcher on a postdoctoral internship within the meaning of section 737.22.0.0.1, a foreign expert within the meaning of section 737.22.0.0.5, a foreign specialist within the meaning of section 737.22.0.1 or a foreign professor within the meaning of section 737.22.0.5, would be deductible in computing the individual’s taxable income for the year under any of sections 737.16.1, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3 and 737.22.0.7 if the individual’s taxable income were determined under Part I;

(h)  the amount, which is attributable in prescribed manner to an establishment of a partnership in Québec, by which the amount required by section 610 to be included in computing the income of the individual for the year as proceeds of the disposition of a right to a share of the income or loss of the partnership under an agreement mentioned therein exceeds the amount that would be deductible in that respect under section 611 in computing his income if he had been resident in Canada throughout the year;

(i)  the losses from duties of an office or employment performed by the individual in Québec and the losses from businesses carried on by the individual in Canada, other than tax-agreement-protected businesses, within the meaning of section 1, which are attributable in prescribed manner to an establishment in Québec;

(j)  where, in the year, he carried on a business in Canada described in paragraphs a to g of section 363, the amounts in respect of any Québec resource property within the meaning of paragraph d that the individual would be required to include in computing his income for the year under Part I if he were resident in Québec, to the extent that such amounts are not already included in computing his income under paragraph b or d;

(k)  the amount that, if the individual had been resident in Québec throughout the year, would be included under section 968 or 968.1 in computing his income in respect of an interest in a life insurance policy issued or subscribed by an insurer, on the life of a person resident in Québec at the time of the issue or subscription; and

(l)  where the individual has been carrying on business in Canada in the year, the amounts relating to a Québec resource property within the meaning of subparagraph d, except where an amount in respect of the disposition of such property is deducted under section 412 or 418.6, to a Québec timber resource property within the meaning of subparagraph e, other than depreciable property, or to property, other than capital property, that is an immovable situated in Québec, to the extent that such amounts are not already included under subparagraph b, d, e or j in computing his income.

However, the income earned in Québec for a taxation year by an individual who is a foreign specialist, within the meaning of section 737.18.6 or 737.18.29, who is an eligible individual, within the meaning of section 737.22.0.9, or who is described in section 66 of the Act respecting international financial centres (chapter C-8.3), is the amount by which the particular amount that is determined in respect of the individual for the year under the first paragraph exceeds the aggregate of

(a)  the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s exemption period, within the meaning of section 737.18.6, in relation to an employment that is included in the year;

(b)  the product obtained by multiplying the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined in subparagraph 1 of the second paragraph of that section 65 in respect of that period;

(c)  the product obtained by multiplying the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, within the meaning of section 737.18.29, in relation to an employment that is included in the year, by the percentage determined in subparagraph a of the second paragraph of section 737.18.34 in respect of that period; and

(d)  the portion of the particular amount that is included in the amount determined in respect of the individual for the year under section 737.22.0.10.

In addition, for the purposes of subparagraphs b and i of the first paragraph in the case of an individual who is a member of a partnership operating an international financial centre, within the meaning of section 6 of the Act respecting international financial centres, it shall be assumed that the individual had, for the year,

(a)  realized an additional income from a business the individual carried on in Canada, that is attributable to an establishment in Québec and equal to the second aggregate that is mentioned in the first paragraph of section 52 of that Act and determined in respect of the individual for the year under that paragraph; and

(b)  sustained an additional loss from a business the individual carried on in Canada, that is attributable to an establishment in Québec and equal to the first aggregate that is mentioned in the first paragraph of section 52 of that Act and determined in respect of the individual for the year under that paragraph.

For the purposes of the first paragraph, if an individual is, in a taxation year, a certified forest producer under the Sustainable Forest Development Act (chapter A-18.1) in respect of a private woodlot, or is a member of a partnership that is such a certified forest producer in respect of a private woodlot, the particular amount that is determined in respect of the individual for the year under the first paragraph is to be increased by the amount that would be included in computing the individual’s taxable income for the year under section 726.35 and reduced by the amount that the individual could deduct in computing the individual’s taxable income for the year under section 726.33, if the taxable income were determined under Part I.

1972, c. 23, s. 813; 1973, c. 17, s. 124; 1975, c. 22, s. 242; 1978, c. 26, s. 210; 1982, c. 5, s. 196; 1984, c. 15, s. 236; 1986, c. 19, s. 196; 1987, c. 21, s. 82; 1988, c. 4, s. 140; 1993, c. 16, s. 344; 1994, c. 22, s. 333; 1995, c. 1, s. 181; 1997, c. 3, s. 71; 1997, c. 85, s. 298; 1999, c. 83, s. 237; 1999, c. 86, s. 86; 2000, c. 39, s. 220; 2001, c. 53, s. 242; 2002, c. 40, s. 229; 2003, c. 9, s. 385; 2004, c. 8, s. 185; 2004, c. 21, s. 448; 2005, c. 38, s. 305; 2006, c. 36, s. 215; 2010, c. 5, s. 185; 2011, c. 6, s. 214; 2010, c. 3, s. 295.

2011-06-06

1089. The income earned in Québec, for a taxation year, by an individual contemplated in section 26 is his income as determined under section 28, taking into account only the following:

(a)  the amount by which the aggregate of the income from the duties of offices or employments performed by the individual in Québec and the income from the duties of offices or employments performed by the individual outside Canada if the individual was resident in Québec at the time the individual performed the duties exceeds the aggregate of the amounts that, if the individual is an individual referred to in section 737.16.1, a foreign researcher within the meaning of section 737.19, a foreign researcher on a postdoctoral internship within the meaning of section 737.22.0.0.1, a foreign expert within the meaning of section 737.22.0.0.5, a foreign specialist within the meaning of section 737.22.0.1, a foreign professor within the meaning of section 737.22.0.5 or a foreign farm worker within the meaning of section 737.22.0.12, would be deductible in computing the individual’s taxable income for the year under any of sections 737.16.1, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.7 and 737.22.0.13 if the taxable income were determined under Part I;

(b)  income from businesses carried on by him in Canada that is attributable, in prescribed manner, to an establishment in Québec;

(c)  the taxable capital gains and allowable capital losses from dispositions of taxable Québec property, other than

i.  property described in paragraph c or d of section 1094, and

ii.  tax-agreement-protected property, within the meaning of section 1;

(d)  the portion that is reasonably attributable to the disposition of a Québec resource property within the meaning of the regulations or to expenses incurred in Québec of the amount by which the amount required by paragraph e of section 330 to be included in computing his income for the year exceeds any portion of that amount that was included in computing his income from a business carried on by him in Canada;

(e)  the portion that is reasonably attributable to the disposition of a Québec timber resource property within the meaning of the regulations of the amount by which the amounts that are required by sections 93 to 104 to be included in computing his income for the year in respect of the disposition of a timber resource property exceed any portion of those amounts that was included in computing his income from a business carried on by him in Canada;

(e.1)  the amount that the individual would be required to include under paragraph e.6 of section 311 in computing the individual’s income for the year if the individual had been resident in Québec throughout the year, up to the portion of that amount that may reasonably be attributed to the duties of an office or employment performed by the individual in Québec;

(f)  the excess of the amount which must, under section 684, be included in computing his income for the year in respect of the disposition of an income interest in a trust resident in Québec over the amount that would be deductible under section 665 in computing his income if he had been resident in Canada throughout the year;

(g)  the amount by which the income determined under paragraphs b and c of section 1092 in respect of the individual exceeds the aggregate of the amounts that, if the individual is an individual referred to in section 737.16.1, a foreign researcher within the meaning of section 737.19, a foreign researcher on a postdoctoral internship within the meaning of section 737.22.0.0.1, a foreign expert within the meaning of section 737.22.0.0.5, a foreign specialist within the meaning of section 737.22.0.1 or a foreign professor within the meaning of section 737.22.0.5, would be deductible in computing the individual’s taxable income for the year under any of sections 737.16.1, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3 and 737.22.0.7 if the individual’s taxable income were determined under Part I;

(h)  the amount, which is attributable in prescribed manner to an establishment of a partnership in Québec, by which the amount required by section 610 to be included in computing the income of the individual for the year as proceeds of the disposition of a right to a share of the income or loss of the partnership under an agreement mentioned therein exceeds the amount that would be deductible in that respect under section 611 in computing his income if he had been resident in Canada throughout the year;

(i)  the losses from duties of an office or employment performed by the individual in Québec and the losses from businesses carried on by the individual in Canada, other than tax-agreement-protected businesses, within the meaning of section 1, which are attributable in prescribed manner to an establishment in Québec;

(j)  where, in the year, he carried on a business in Canada described in paragraphs a to g of section 363, the amounts in respect of any Québec resource property within the meaning of paragraph d that the individual would be required to include in computing his income for the year under Part I if he were resident in Québec, to the extent that such amounts are not already included in computing his income under paragraph b or d;

(k)  the amount that, if the individual had been resident in Québec throughout the year, would be included under section 968 or 968.1 in computing his income in respect of an interest in a life insurance policy issued or subscribed by an insurer, on the life of a person resident in Québec at the time of the issue or subscription; and

(l)  where the individual has been carrying on business in Canada in the year, the amounts relating to a Québec resource property within the meaning of subparagraph d, except where an amount in respect of the disposition of such property is deducted under section 412 or 418.6, to a Québec timber resource property within the meaning of subparagraph e, other than depreciable property, or to property, other than capital property, that is an immovable situated in Québec, to the extent that such amounts are not already included under subparagraph b, d, e or j in computing his income.

However, the income earned in Québec for a taxation year by an individual who is a foreign specialist, within the meaning of section 737.18.6 or 737.18.29, who is an eligible individual, within the meaning of section 737.22.0.9, or who is described in section 66 of the Act respecting international financial centres (chapter C-8.3), is the amount by which the particular amount that is determined in respect of the individual for the year under the first paragraph exceeds the aggregate of

(a)  the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s exemption period, within the meaning of section 737.18.6, in relation to an employment that is included in the year;

(b)  the product obtained by multiplying the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined in subparagraph 1 of the second paragraph of that section 65 in respect of that period;

(c)  the product obtained by multiplying the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, within the meaning of section 737.18.29, in relation to an employment that is included in the year, by the percentage determined in subparagraph a of the second paragraph of section 737.18.34 in respect of that period; and

(d)  the portion of the particular amount that is included in the amount determined in respect of the individual for the year under section 737.22.0.10.

In addition, for the purposes of subparagraphs b and i of the first paragraph in the case of an individual who is a member of a partnership operating an international financial centre, within the meaning of section 6 of the Act respecting international financial centres, it shall be assumed that the individual had, for the year,

(a)  realized an additional income from a business the individual carried on in Canada, that is attributable to an establishment in Québec and equal to the second aggregate that is mentioned in the first paragraph of section 52 of that Act and determined in respect of the individual for the year under that paragraph; and

(b)  sustained an additional loss from a business the individual carried on in Canada, that is attributable to an establishment in Québec and equal to the first aggregate that is mentioned in the first paragraph of section 52 of that Act and determined in respect of the individual for the year under that paragraph.

For the purposes of the first paragraph, if an individual is, in a taxation year, a certified forest producer under the Forest Act (chapter F-4.1) in respect of a private woodlot, or is a member of a partnership that is such a certified forest producer in respect of a private woodlot, the particular amount that is determined in respect of the individual for the year under the first paragraph is to be increased by the amount that would be included in computing the individual’s taxable income for the year under section 726.35 and reduced by the amount that the individual could deduct in computing the individual’s taxable income for the year under section 726.33, if the taxable income were determined under Part I.

1972, c. 23, s. 813; 1973, c. 17, s. 124; 1975, c. 22, s. 242; 1978, c. 26, s. 210; 1982, c. 5, s. 196; 1984, c. 15, s. 236; 1986, c. 19, s. 196; 1987, c. 21, s. 82; 1988, c. 4, s. 140; 1993, c. 16, s. 344; 1994, c. 22, s. 333; 1995, c. 1, s. 181; 1997, c. 3, s. 71; 1997, c. 85, s. 298; 1999, c. 83, s. 237; 1999, c. 86, s. 86; 2000, c. 39, s. 220; 2001, c. 53, s. 242; 2002, c. 40, s. 229; 2003, c. 9, s. 385; 2004, c. 8, s. 185; 2004, c. 21, s. 448; 2005, c. 38, s. 305; 2006, c. 36, s. 215; 2010, c. 5, s. 185; 2011, c. 6, s. 214.

2010-04-20

1089. The income earned in Québec, for a taxation year, by an individual contemplated in section 26 is his income as determined under section 28, taking into account only the following:

(a)  the amount by which the aggregate of the income from the duties of offices or employments performed by the individual in Québec and the income from the duties of offices or employments performed by the individual outside Canada if the individual was resident in Québec at the time the individual performed the duties exceeds the aggregate of the amounts that, if the individual is an individual referred to in section 737.16.1, a foreign researcher within the meaning of section 737.19, a foreign researcher on a postdoctoral internship within the meaning of section 737.22.0.0.1, a foreign expert within the meaning of section 737.22.0.0.5, a foreign specialist within the meaning of section 737.22.0.1, a foreign professor within the meaning of section 737.22.0.5 or a foreign farm worker within the meaning of section 737.22.0.12, would be deductible in computing the individual’s taxable income for the year under any of sections 737.16.1, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.7 and 737.22.0.13 if the taxable income were determined under Part I;

(b)  income from businesses carried on by him in Canada that is attributable, in prescribed manner, to an establishment in Québec;

(c)  the taxable capital gains and allowable capital losses from dispositions of taxable Québec property, other than

i.  property described in any of paragraphs c to h.1 of section 1094, and

ii.  tax-agreement-protected property, within the meaning of section 1;

(d)  the portion that is reasonably attributable to the disposition of a Québec resource property within the meaning of the regulations or to expenses incurred in Québec of the amount by which the amount required by paragraph e of section 330 to be included in computing his income for the year exceeds any portion of that amount that was included in computing his income from a business carried on by him in Canada;

(e)  the portion that is reasonably attributable to the disposition of a Québec timber resource property within the meaning of the regulations of the amount by which the amounts that are required by sections 93 to 104 to be included in computing his income for the year in respect of the disposition of a timber resource property exceed any portion of those amounts that was included in computing his income from a business carried on by him in Canada;

(e.1)  the amount that the individual would be required to include under paragraph e.6 of section 311 in computing the individual’s income for the year if the individual had been resident in Québec throughout the year, up to the portion of that amount that may reasonably be attributed to the duties of an office or employment performed by the individual in Québec;

(f)  the excess of the amount which must, under section 684, be included in computing his income for the year in respect of the disposition of an income interest in a trust resident in Québec over the amount that would be deductible under section 665 in computing his income if he had been resident in Canada throughout the year;

(g)  the amount by which the income determined under paragraphs b and c of section 1092 in respect of the individual exceeds the aggregate of the amounts that, if the individual is an individual referred to in section 737.16.1, a foreign researcher within the meaning of section 737.19, a foreign researcher on a postdoctoral internship within the meaning of section 737.22.0.0.1, a foreign expert within the meaning of section 737.22.0.0.5, a foreign specialist within the meaning of section 737.22.0.1 or a foreign professor within the meaning of section 737.22.0.5, would be deductible in computing the individual’s taxable income for the year under any of sections 737.16.1, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3 and 737.22.0.7 if the individual’s taxable income were determined under Part I;

(h)  the amount, which is attributable in prescribed manner to an establishment of a partnership in Québec, by which the amount required by section 610 to be included in computing the income of the individual for the year as proceeds of the disposition of a right to a share of the income or loss of the partnership under an agreement mentioned therein exceeds the amount that would be deductible in that respect under section 611 in computing his income if he had been resident in Canada throughout the year;

(i)  the losses from duties of an office or employment performed by the individual in Québec and the losses from businesses carried on by the individual in Canada, other than tax-agreement-protected businesses, within the meaning of section 1, which are attributable in prescribed manner to an establishment in Québec;

(j)  where, in the year, he carried on a business in Canada described in paragraphs a to g of section 363, the amounts in respect of any Québec resource property within the meaning of paragraph d that the individual would be required to include in computing his income for the year under Part I if he were resident in Québec, to the extent that such amounts are not already included in computing his income under paragraph b or d;

(k)  the amount that, if the individual had been resident in Québec throughout the year, would be included under section 968 or 968.1 in computing his income in respect of an interest in a life insurance policy issued or subscribed by an insurer, on the life of a person resident in Québec at the time of the issue or subscription; and

(l)  where the individual has been carrying on business in Canada in the year, the amounts relating to a Québec resource property within the meaning of subparagraph d, except where an amount in respect of the disposition of such property is deducted under section 412 or 418.6, to a Québec timber resource property within the meaning of subparagraph e, other than depreciable property, or to property, other than capital property, that is an immovable situated in Québec, to the extent that such amounts are not already included under subparagraph b, d, e or j in computing his income.

However, the income earned in Québec for a taxation year by an individual who is a foreign specialist, within the meaning of section 737.18.6 or 737.18.29, who is an eligible individual, within the meaning of section 737.22.0.9, or who is described in section 66 of the Act respecting international financial centres (chapter C-8.3), is the amount by which the particular amount that is determined in respect of the individual for the year under the first paragraph exceeds the aggregate of

(a)  the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s exemption period, within the meaning of section 737.18.6, in relation to an employment that is included in the year;

(b)  the product obtained by multiplying the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined in subparagraph 1 of the second paragraph of that section 65 in respect of that period;

(c)  the product obtained by multiplying the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, within the meaning of section 737.18.29, in relation to an employment that is included in the year, by the percentage determined in subparagraph a of the second paragraph of section 737.18.34 in respect of that period; and

(d)  the portion of the particular amount that is included in the amount determined in respect of the individual for the year under section 737.22.0.10.

In addition, for the purposes of subparagraphs b and i of the first paragraph in the case of an individual who is a member of a partnership operating an international financial centre, within the meaning of section 6 of the Act respecting international financial centres, it shall be assumed that the individual had, for the year,

(a)  realized an additional income from a business the individual carried on in Canada, that is attributable to an establishment in Québec and equal to the second aggregate that is mentioned in the first paragraph of section 52 of that Act and determined in respect of the individual for the year under that paragraph; and

(b)  sustained an additional loss from a business the individual carried on in Canada, that is attributable to an establishment in Québec and equal to the first aggregate that is mentioned in the first paragraph of section 52 of that Act and determined in respect of the individual for the year under that paragraph.

For the purposes of the first paragraph, if an individual is, in a taxation year, a certified forest producer under the Forest Act (chapter F-4.1) in respect of a private woodlot, or is a member of a partnership that is such a certified forest producer in respect of a private woodlot, the particular amount that is determined in respect of the individual for the year under the first paragraph is to be increased by the amount that would be included in computing the individual’s taxable income for the year under section 726.35 and reduced by the amount that the individual could deduct in computing the individual’s taxable income for the year under section 726.33, if the taxable income were determined under Part I.

1972, c. 23, s. 813; 1973, c. 17, s. 124; 1975, c. 22, s. 242; 1978, c. 26, s. 210; 1982, c. 5, s. 196; 1984, c. 15, s. 236; 1986, c. 19, s. 196; 1987, c. 21, s. 82; 1988, c. 4, s. 140; 1993, c. 16, s. 344; 1994, c. 22, s. 333; 1995, c. 1, s. 181; 1997, c. 3, s. 71; 1997, c. 85, s. 298; 1999, c. 83, s. 237; 1999, c. 86, s. 86; 2000, c. 39, s. 220; 2001, c. 53, s. 242; 2002, c. 40, s. 229; 2003, c. 9, s. 385; 2004, c. 8, s. 185; 2004, c. 21, s. 448; 2005, c. 38, s. 305; 2006, c. 36, s. 215; 2010, c. 5, s. 185.

2006-12-06

1089. The income earned in Québec, for a taxation year, by an individual contemplated in section 26 is his income as determined under section 28, taking into account only the following:

(a)  the amount by which the aggregate of the income from the duties of offices or employments performed by the individual in Québec and the income from the duties of offices or employments performed by the individual outside Canada if the individual was resident in Québec at the time the individual performed the duties exceeds the aggregate of the amounts that, if the individual is an individual referred to in section 737.16.1, a foreign researcher within the meaning of section 737.19, a foreign researcher on a postdoctoral internship within the meaning of section 737.22.0.0.1, a foreign expert within the meaning of section 737.22.0.0.5, a foreign specialist within the meaning of section 737.22.0.1, a foreign professor within the meaning of section 737.22.0.5 or a foreign farm worker within the meaning of section 737.22.0.12, would be deductible in computing the individual’s taxable income for the year under any of sections 737.16.1, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3, 737.22.0.7 and 737.22.0.13 if the taxable income were determined under Part I;

(b)  income from businesses carried on by him in Canada that is attributable, in prescribed manner, to an establishment in Québec;

(c)  the taxable capital gains and allowable capital losses from dispositions of taxable Québec property, other than

i.  property described in any of paragraphs c to h.1 of section 1094, and

ii.  tax-agreement-protected property, within the meaning of section 1;

(d)  the portion that is reasonably attributable to the disposition of a Québec resource property within the meaning of the regulations or to expenses incurred in Québec of the amount by which the amount required by paragraph e of section 330 to be included in computing his income for the year exceeds any portion of that amount that was included in computing his income from a business carried on by him in Canada;

(e)  the portion that is reasonably attributable to the disposition of a Québec timber resource property within the meaning of the regulations of the amount by which the amounts that are required by sections 93 to 104 to be included in computing his income for the year in respect of the disposition of a timber resource property exceed any portion of those amounts that was included in computing his income from a business carried on by him in Canada;

(f)  the excess of the amount which must, under section 684, be included in computing his income for the year in respect of the disposition of an income interest in a trust resident in Québec over the amount that would be deductible under section 665 in computing his income if he had been resident in Canada throughout the year;

(g)  the amount by which the income determined under paragraphs b and c of section 1092 in respect of the individual exceeds the aggregate of the amounts that, if the individual is an individual referred to in section 737.16.1, a foreign researcher within the meaning of section 737.19, a foreign researcher on a postdoctoral internship within the meaning of section 737.22.0.0.1, a foreign expert within the meaning of section 737.22.0.0.5, a foreign specialist within the meaning of section 737.22.0.1 or a foreign professor within the meaning of section 737.22.0.5, would be deductible in computing the individual’s taxable income for the year under any of sections 737.16.1, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3 and 737.22.0.7 if the individual’s taxable income were determined under Part I;

(h)  the amount, which is attributable in prescribed manner to an establishment of a partnership in Québec, by which the amount required by section 610 to be included in computing the income of the individual for the year as proceeds of the disposition of a right to a share of the income or loss of the partnership under an agreement mentioned therein exceeds the amount that would be deductible in that respect under section 611 in computing his income if he had been resident in Canada throughout the year;

(i)  the losses from duties of an office or employment performed by the individual in Québec and the losses from businesses carried on by the individual in Canada, other than tax-agreement-protected businesses, within the meaning of section 1, which are attributable in prescribed manner to an establishment in Québec;

(j)  where, in the year, he carried on a business in Canada described in paragraphs a to g of section 363, the amounts in respect of any Québec resource property within the meaning of paragraph d that the individual would be required to include in computing his income for the year under Part I if he were resident in Québec, to the extent that such amounts are not already included in computing his income under paragraph b or d;

(k)  the amount that, if the individual had been resident in Québec throughout the year, would be included under section 968 or 968.1 in computing his income in respect of an interest in a life insurance policy issued or subscribed by an insurer, on the life of a person resident in Québec at the time of the issue or subscription; and

(l)  where the individual has been carrying on business in Canada in the year, the amounts relating to a Québec resource property within the meaning of subparagraph d, except where an amount in respect of the disposition of such property is deducted under section 412 or 418.6, to a Québec timber resource property within the meaning of subparagraph e, other than depreciable property, or to property, other than capital property, that is an immovable situated in Québec, to the extent that such amounts are not already included under subparagraph b, d, e or j in computing his income.

However, the income earned in Québec for a taxation year by an individual who is a foreign specialist, within the meaning of section 737.18.6 or 737.18.29, who is an eligible individual, within the meaning of section 737.22.0.9, or who is described in section 66 of the Act respecting international financial centres (chapter C-8.3), is the amount by which the particular amount that is determined in respect of the individual for the year under the first paragraph exceeds the aggregate of

(a)  the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s exemption period, within the meaning of section 737.18.6, in relation to an employment that is included in the year;

(b)  the product obtained by multiplying the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined in subparagraph 1 of the second paragraph of that section 65 in respect of that period;

(c)  the product obtained by multiplying the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, within the meaning of section 737.18.29, in relation to an employment that is included in the year, by the percentage determined in subparagraph a of the second paragraph of section 737.18.34 in respect of that period; and

(d)  the portion of the particular amount that is included in the amount determined in respect of the individual for the year under section 737.22.0.10.

In addition, for the purposes of subparagraphs b and i of the first paragraph in the case of an individual who is a member of a partnership operating an international financial centre, within the meaning of section 6 of the Act respecting international financial centres, it shall be assumed that the individual had, for the year,

(a)  realized an additional income from a business the individual carried on in Canada, that is attributable to an establishment in Québec and equal to the second aggregate that is mentioned in the first paragraph of section 52 of that Act and determined in respect of the individual for the year under that paragraph; and

(b)  sustained an additional loss from a business the individual carried on in Canada, that is attributable to an establishment in Québec and equal to the first aggregate that is mentioned in the first paragraph of section 52 of that Act and determined in respect of the individual for the year under that paragraph.

For the purposes of the first paragraph, if an individual is, in a taxation year, a certified forest producer under the Forest Act (chapter F-4.1) in respect of a private woodlot, or is a member of a partnership that is such a certified forest producer in respect of a private woodlot, the particular amount that is determined in respect of the individual for the year under the first paragraph is to be increased by the amount that would be included in computing the individual’s taxable income for the year under section 726.35 and reduced by the amount that the individual could deduct in computing the individual’s taxable income for the year under section 726.33, if the taxable income were determined under Part I.

1972, c. 23, s. 813; 1973, c. 17, s. 124; 1975, c. 22, s. 242; 1978, c. 26, s. 210; 1982, c. 5, s. 196; 1984, c. 15, s. 236; 1986, c. 19, s. 196; 1987, c. 21, s. 82; 1988, c. 4, s. 140; 1993, c. 16, s. 344; 1994, c. 22, s. 333; 1995, c. 1, s. 181; 1997, c. 3, s. 71; 1997, c. 85, s. 298; 1999, c. 83, s. 237; 1999, c. 86, s. 86; 2000, c. 39, s. 220; 2001, c. 53, s. 242; 2002, c. 40, s. 229; 2003, c. 9, s. 385; 2004, c. 8, s. 185; 2004, c. 21, s. 448; 2005, c. 38, s. 305; 2006, c. 36, s. 215.

2006-03-01

1089. The income earned in Québec, for a taxation year, by an individual contemplated in section 26 is his income as determined under section 28, taking into account only the following:

(a)  the amount by which the aggregate of the income from the duties of offices or employments performed by the individual in Québec and the income from the duties of offices or employments performed by the individual outside Canada if the individual was resident in Québec at the time the individual performed the duties exceeds the aggregate of the amounts that, if the individual is an individual referred to in section 737.16.1, a foreign researcher within the meaning of section 737.19, a foreign researcher on a post-doctoral internship within the meaning of section 737.22.0.0.1, a foreign expert within the meaning of section 737.22.0.0.5, a foreign specialist within the meaning of section 737.22.0.1 or a foreign professor within the meaning of section 737.22.0.5, would be deductible in computing the individual’s taxable income for the year under any of sections 737.16.1, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3 and 737.22.0.7 if the individual’s taxable income were determined under Part I;

(b)  income from businesses carried on by him in Canada that is attributable, in prescribed manner, to an establishment in Québec;

(c)  the taxable capital gains and allowable capital losses from dispositions of taxable Québec property, other than

i.  property described in any of paragraphs c to h.1 of section 1094, and

ii.  tax-agreement-protected property, within the meaning of section 1;

(d)  the portion that is reasonably attributable to the disposition of a Québec resource property within the meaning of the regulations or to expenses incurred in Québec of the amount by which the amount required by paragraph e of section 330 to be included in computing his income for the year exceeds any portion of that amount that was included in computing his income from a business carried on by him in Canada;

(e)  the portion that is reasonably attributable to the disposition of a Québec timber resource property within the meaning of the regulations of the amount by which the amounts that are required by sections 93 to 104 to be included in computing his income for the year in respect of the disposition of a timber resource property exceed any portion of those amounts that was included in computing his income from a business carried on by him in Canada;

(f)  the excess of the amount which must, under section 684, be included in computing his income for the year in respect of the disposition of an income interest in a trust resident in Québec over the amount that would be deductible under section 665 in computing his income if he had been resident in Canada throughout the year;

(g)  the amount by which the income determined under paragraphs b and c of section 1092 in respect of the individual exceeds the aggregate of the amounts that, if the individual is an individual referred to in section 737.16.1, a foreign researcher within the meaning of section 737.19, a foreign researcher on a post-doctoral internship within the meaning of section 737.22.0.0.1, a foreign expert within the meaning of section 737.22.0.0.5, a foreign specialist within the meaning of section 737.22.0.1 or a foreign professor within the meaning of section 737.22.0.5, would be deductible in computing the individual’s taxable income for the year under any of sections 737.16.1, 737.21, 737.22.0.0.3, 737.22.0.0.7, 737.22.0.3 and 737.22.0.7 if the individual’s taxable income were determined under Part I;

(h)  the amount, which is attributable in prescribed manner to an establishment of a partnership in Québec, by which the amount required by section 610 to be included in computing the income of the individual for the year as proceeds of the disposition of a right to a share of the income or loss of the partnership under an agreement mentioned therein exceeds the amount that would be deductible in that respect under section 611 in computing his income if he had been resident in Canada throughout the year;

(i)  the losses from duties of an office or employment performed by the individual in Québec and the losses from businesses carried on by the individual in Canada, other than tax-agreement-protected businesses, within the meaning of section 1, which are attributable in prescribed manner to an establishment in Québec;

(j)  where, in the year, he carried on a business in Canada described in paragraphs a to g of section 363, the amounts in respect of any Québec resource property within the meaning of paragraph d that the individual would be required to include in computing his income for the year under Part I if he were resident in Québec, to the extent that such amounts are not already included in computing his income under paragraph b or d;

(k)  the amount that, if the individual had been resident in Québec throughout the year, would be included under section 968 or 968.1 in computing his income in respect of an interest in a life insurance policy issued or subscribed by an insurer, on the life of a person resident in Québec at the time of the issue or subscription;

(l)  where the individual has been carrying on business in Canada in the year, the amounts relating to a Québec resource property within the meaning of subparagraph d, except where an amount in respect of the disposition of such property is deducted under section 412 or 418.6, to a Québec timber resource property within the meaning of subparagraph e, other than depreciable property, or to property, other than capital property, that is an immovable situated in Québec, to the extent that such amounts are not already included under subparagraph b, d, e or j in computing his income.

However, the income earned in Québec for a taxation year by an individual who is a foreign specialist, within the meaning of section 737.18.6 or 737.18.29, or who is described in section 66 of the Act respecting international financial centres (chapter C-8.3), is the amount by which the particular amount that is determined in respect of the individual for the year under the first paragraph exceeds the aggregate of

(a)  the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of the individual’s exemption period, within the meaning of section 737.18.6, in relation to an employment that is included in the year;

(b)  the product obtained by multiplying the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, established under the fourth paragraph of section 65 of the Act respecting international financial centres, in relation to an employment that is included in the year, by the percentage determined in subparagraph 1 of the second paragraph of that section 65 in respect of that period; and

(c)  the product obtained by multiplying the portion of the particular amount that is included in the part of the individual’s income for the year that may reasonably be considered to be earned in the part of a specified period of the individual, within the meaning of section 737.18.29, in relation to an employment that is included in the year, by the percentage determined in subparagraph a of the second paragraph of section 737.18.34 in respect of that period.

In addition, for the purposes of subparagraphs b and i of the first paragraph in the case of an individual who is a member of a partnership operating an international financial centre, within the meaning of section 6 of the Act respecting international financial centres, it shall be assumed that the individual had, for the year,

(a)  realized an additional income from a business the individual carried on in Canada, that is attributable to an establishment in Québec and equal to the second aggregate that is mentioned in the first paragraph of section 52 of that Act and determined in respect of the individual for the year under that paragraph; and

(b)  sustained an additional loss from a business the individual carried on in Canada, that is attributable to an establishment in Québec and equal to the first aggregate that is mentioned in the first paragraph of section 52 of that Act and determined in respect of the individual for the year under that paragraph.

1972, c. 23, s. 813; 1973, c. 17, s. 124; 1975, c. 22, s. 242; 1978, c. 26, s. 210; 1982, c. 5, s. 196; 1984, c. 15, s. 236; 1986, c. 19, s. 196; 1987, c. 21, s. 82; 1988, c. 4, s. 140; 1993, c. 16, s. 344; 1994, c. 22, s. 333; 1995, c. 1, s. 181; 1997, c. 3, s. 71; 1997, c. 85, s. 298; 1999, c. 83, s. 237; 1999, c. 86, s. 86; 2000, c. 39, s. 220; 2001, c. 53, s. 242; 2002, c. 40, s. 229; 2003, c. 9, s. 385; 2004, c. 8, s. 185; 2004, c. 21, s. 448; 2005, c. 38, s. 305.