I-3 - Taxation Act

Section 1029.8.36.166.60.50 Disposition versions

2023-03-15

1029.8.36.166.60.50. The rate to which the first paragraph of sections 1029.8.36.166.60.48 and 1029.8.36.166.60.49 refers, in relation to a portion of the specified expenses of a corporation or a partnership, in respect of a specified property, for a particular taxation year of the corporation or a corporation that is a member of the partnership is

(a)  where the specified property is acquired to be used mainly in a territory with low economic vitality,

i.  if the portion of the specified expenses represents expenses that are described in the fourth paragraph, 40%, or

ii.  in any other case, 20%;

(b)  where the specified property is acquired to be used mainly in a territory with intermediate economic vitality,

i.  if the portion of the specified expenses represents expenses that are described in the fourth paragraph, 30%, or

ii.  in any other case, 15%; or

(c)  where the specified property is acquired to be used mainly in a territory with high economic vitality,

i.  if the portion of the specified expenses represents expenses that are described in the fourth paragraph, 20%, or

ii.  in any other case, 10%.

Where a specified property that is referred to in subparagraph v of paragraph b of the definition of that expression in the first paragraph of section 1029.8.36.166.60.36 is acquired by a qualified corporation or a qualified partnership to be used in several establishments of the corporation or partnership without it being possible to determine in which territory referred to in the first paragraph the property is to be mainly used, the property is, for the purposes of the first paragraph, deemed to be acquired to be so used

(a)  in a territory with low economic vitality if, in the first taxation year or the first fiscal period, as the case may be, in which specified expenses were incurred for the acquisition of the property, the proportion that the aggregate of the salaries or wages paid by the corporation or partnership to its employees who report for work at one of its establishments situated in a territory with low economic vitality is of the aggregate of the salaries or wages it paid to its employees who report for work at one of its establishments situated in Québec exceeds 50%;

(b)  in a territory with intermediate economic vitality if subparagraph a does not apply and if, in the first taxation year or the first fiscal period, as the case may be, in which specified expenses were incurred for the acquisition of the property, the proportion that the aggregate of the salaries or wages paid by the corporation or partnership to its employees who report for work at one of its establishments situated in a territory with intermediate economic vitality or in a territory with low economic vitality is of the aggregate of the salaries or wages it paid to its employees who report for work at one of its establishments situated in Québec exceeds 50%; or

(c)  in any other case, in a territory with high economic vitality.

For the purposes of the second paragraph, the following rules are taken into account:

(a)  where, in a taxation year or a fiscal period, an employee reports for work at an establishment of a corporation or partnership situated in Québec and at an establishment of the corporation or partnership situated outside Québec, the employee is deemed, for that period,

i.  unless subparagraph ii applies, to report for work only at the establishment situated in Québec, or

ii.  to report for work only at the establishment situated outside Québec if, during that period, the employee reports for work mainly at an establishment of the corporation or partnership situated outside Québec;

(b)  where, in a taxation year or a fiscal period, an employee reports for work at several establishments of a corporation or partnership and those establishments are situated in territories referred to in the first paragraph that do not have the same level of economic vitality, the employee is deemed, for that period,

i.  to report for work only at an establishment situated in a territory with low economic vitality if the employee reports for work mainly, during that period, at one or more establishments of the corporation or partnership situated in such a territory,

ii.  to report for work only at an establishment situated in a territory with intermediate economic vitality if subparagraph i does not apply and the employee reports for work mainly, during that period, at one or more establishments of the corporation or partnership situated in such a territory or in a territory with low economic vitality, or

iii.  in any other case, to report for work only at an establishment situated in a territory with high economic vitality; and

(c)  where, in a taxation year or a fiscal period, an employee is not required to report for work at an establishment of a corporation or partnership and the employee’s wages in relation to that period are paid from such an establishment situated in Québec, the employee is deemed to report for work at that establishment if the duties performed by the employee during that period are performed mainly in Québec.

The expenses referred to in subparagraph i of each of subparagraphs a to c of the first paragraph are those that are incurred in the particular period that begins on 26 March 2021 and ends on 31 December 2023, where

(a)  the property is acquired in the particular period otherwise than pursuant to an obligation in writing entered into on or before 25 March 2021 and is not a property the construction of which, by or on behalf of the purchaser, had begun by that date; or

(b)  the property is acquired after 31 December 2023 and before 1 April 2024 and either the acquisition is made pursuant to an obligation in writing entered into in the particular period, or the construction of the property, by or on behalf of the purchaser, began in that period.

2021, c. 14, s. 151; 2021, c. 36, s. 125; 2023, c. 2, s. 55.

2021-12-10

1029.8.36.166.60.50. The rate to which the first paragraph of sections 1029.8.36.166.60.48 and 1029.8.36.166.60.49 refers, in relation to a portion of the specified expenses of a corporation or a partnership, in respect of a specified property, for a particular taxation year of the corporation or a corporation that is a member of the partnership is

(a)  where the specified property is acquired to be used mainly in a territory with low economic vitality,

i.  if the portion of the specified expenses represents expenses that are described in the fourth paragraph, 40%, or

ii.  in any other case, 20%;

(b)  where the specified property is acquired to be used mainly in a territory with intermediate economic vitality,

i.  if the portion of the specified expenses represents expenses that are described in the fourth paragraph, 30%, or

ii.  in any other case, 15%; or

(c)  where the specified property is acquired to be used mainly in a territory with high economic vitality,

i.  if the portion of the specified expenses represents expenses that are described in the fourth paragraph, 20%, or

ii.  in any other case, 10%.

Where a specified property that is referred to in subparagraph v of paragraph b of the definition of that expression in the first paragraph of section 1029.8.36.166.60.36 is acquired by a qualified corporation or a qualified partnership to be used in several establishments of the corporation or partnership without it being possible to determine in which territory referred to in the first paragraph the property is to be mainly used, the property is, for the purposes of the first paragraph, deemed to be acquired to be so used

(a)  in a territory with low economic vitality if, in the first taxation year or the first fiscal period, as the case may be, in which specified expenses were incurred for the acquisition of the property, the proportion that the aggregate of the salaries or wages paid by the corporation or partnership to its employees who report for work at one of its establishments situated in a territory with low economic vitality is of the aggregate of the salaries or wages it paid to its employees who report for work at one of its establishments situated in Québec exceeds 50%;

(b)  in a territory with intermediate economic vitality if subparagraph a does not apply and if, in the first taxation year or the first fiscal period, as the case may be, in which specified expenses were incurred for the acquisition of the property, the proportion that the aggregate of the salaries or wages paid by the corporation or partnership to its employees who report for work at one of its establishments situated in a territory with intermediate economic vitality or in a territory with low economic vitality is of the aggregate of the salaries or wages it paid to its employees who report for work at one of its establishments situated in Québec exceeds 50%; or

(c)  in any other case, in a territory with high economic vitality.

For the purposes of the second paragraph, the following rules are taken into account:

(a)  where, in a taxation year or a fiscal period, an employee reports for work at an establishment of a corporation or partnership situated in Québec and at an establishment of the corporation or partnership situated outside Québec, the employee is deemed, for that period,

i.  unless subparagraph ii applies, to report for work only at the establishment situated in Québec, or

ii.  to report for work only at the establishment situated outside Québec if, during that period, the employee reports for work mainly at an establishment of the corporation or partnership situated outside Québec;

(b)  where, in a taxation year or a fiscal period, an employee reports for work at several establishments of a corporation or partnership and those establishments are situated in territories referred to in the first paragraph that do not have the same level of economic vitality, the employee is deemed, for that period,

i.  to report for work only at an establishment situated in a territory with low economic vitality if the employee reports for work mainly, during that period, at one or more establishments of the corporation or partnership situated in such a territory,

ii.  to report for work only at an establishment situated in a territory with intermediate economic vitality if subparagraph i does not apply and the employee reports for work mainly, during that period, at one or more establishments of the corporation or partnership situated in such a territory or in a territory with low economic vitality, or

iii.  in any other case, to report for work only at an establishment situated in a territory with high economic vitality; and

(c)  where, in a taxation year or a fiscal period, an employee is not required to report for work at an establishment of a corporation or partnership and the employee’s wages in relation to that period are paid from such an establishment situated in Québec, the employee is deemed to report for work at that establishment if the duties performed by the employee during that period are performed mainly in Québec.

The expenses referred to in subparagraph i of each of subparagraphs a to c of the first paragraph are those that are incurred in the period that begins on 26 March 2021 and ends on 31 December 2022, where

(a)  the property is acquired in that period otherwise than pursuant to an obligation in writing entered into on or before 25 March 2021 and is not a property the construction of which, by or on behalf of the purchaser, had begun by that date; or

(b)  the property is acquired after 31 December 2022 and before 1 April 2023 and either the acquisition is made pursuant to an obligation in writing entered into in the period that begins on 26 March 2021 and ends on 31 December 2022, or the construction of the property, by or on behalf of the purchaser, began in that period.

2021, c. 14, s. 151; 2021, c. 36, s. 125.

2021-06-02

1029.8.36.166.60.50. The rate to which the first paragraph of sections 1029.8.36.166.60.48 and 1029.8.36.166.60.49 refers in respect of a specified property of a corporation or a partnership for a particular taxation year is

(a)  where the specified property is acquired to be used mainly in a territory with low economic vitality,  20%;

(b)  where the specified property is acquired to be used mainly in a territory with intermediate economic vitality, 15%; or

(c)  where the specified property is acquired to be used mainly in a territory with high economic vitality, 10%.

Where a specified property that is referred to in subparagraph v of paragraph b of the definition of that expression in the first paragraph of section 1029.8.36.166.60.36 is acquired by a qualified corporation or a qualified partnership to be used in several establishments of the corporation or partnership without it being possible to determine in which territory referred to in the first paragraph the property is to be mainly used, the property is, for the purposes of the first paragraph, deemed to be acquired to be so used

(a)  in a territory with low economic vitality if, in the first taxation year or the first fiscal period, as the case may be, in which specified expenses were incurred for the acquisition of the property, the proportion that the aggregate of the salaries or wages paid by the corporation or partnership to its employees who report for work at one of its establishments situated in a territory with low economic vitality is of the aggregate of the salaries or wages it paid to its employees who report for work at one of its establishments situated in Québec exceeds 50%;

(b)  in a territory with intermediate economic vitality if subparagraph a does not apply and if, in the first taxation year or the first fiscal period, as the case may be, in which specified expenses were incurred for the acquisition of the property, the proportion that the aggregate of the salaries or wages paid by the corporation or partnership to its employees who report for work at one of its establishments situated in a territory with intermediate economic vitality or in a territory with low economic vitality is of the aggregate of the salaries or wages it paid to its employees who report for work at one of its establishments situated in Québec exceeds 50%; or

(c)  in any other case, in a territory with high economic vitality.

For the purposes of the second paragraph, the following rules are taken into account:

(a)  where, in a taxation year or a fiscal period, an employee reports for work at an establishment of a corporation or partnership situated in Québec and at an establishment of the corporation or partnership situated outside Québec, the employee is deemed, for that period,

i.  unless subparagraph ii applies, to report for work only at the establishment situated in Québec, or

ii.  to report for work only at the establishment situated outside Québec if, during that period, the employee reports for work mainly at an establishment of the corporation or partnership situated outside Québec;

(b)  where, in a taxation year or a fiscal period, an employee reports for work at several establishments of a corporation or partnership and those establishments are situated in territories referred to in the first paragraph that do not have the same level of economic vitality, the employee is deemed, for that period,

i.  to report for work only at an establishment situated in a territory with low economic vitality if the employee reports for work mainly, during that period, at one or more establishments of the corporation or partnership situated in such a territory,

ii.  to report for work only at an establishment situated in a territory with intermediate economic vitality if subparagraph i does not apply and the employee reports for work mainly, during that period, at one or more establishments of the corporation or partnership situated in such a territory or in a territory with low economic vitality, or

iii.  in any other case, to report for work only at an establishment situated in a territory with high economic vitality; and

(c)  where, in a taxation year or a fiscal period, an employee is not required to report for work at an establishment of a corporation or partnership and the employee’s wages in relation to that period are paid from such an establishment situated in Québec, the employee is deemed to report for work at that establishment if the duties performed by the employee during that period are performed mainly in Québec.

2021, c. 14, s. 151.