I-3 - Taxation Act

Section 156.11 Disposition versions

2017-12-07

156.11. In this division,

“additional deduction rate” that applies to a qualified corporation or a manufacturing corporation for a taxation year means, in the case of a qualified corporation for the year, 10% and, in the case of a manufacturing corporation for the year, subject to sections 156.12 and 156.13,

(a)  0%, if the major portion of the corporation’s cost of manufacturing and processing capital for the year is attributable to property it uses outside the central area, the intermediate area, the remote area and the special remote area;

(a.1)  1%, if the major portion of the corporation’s cost of manufacturing and processing capital for the year is attributable to property it uses in the central area;

(b)  3%, if the major portion of the corporation’s cost of manufacturing and processing capital for the year is attributable to property it uses in the intermediate area;

(c)  5%, if the major portion of the corporation’s cost of manufacturing and processing capital for the year is attributable to property it uses in the remote area; or

(d)  10%, if the major portion of the corporation’s cost of manufacturing and processing capital for the year is attributable to property it uses in the special remote area;

“central area” means an area that includes the part of the territory of Québec that is not included in the intermediate area, the remote area and the special remote area;

“cost of capital” of a qualified corporation for a taxation year means the amount determined in respect of the corporation for the year under the definition of “cost of capital” in section 5202 of the Income Tax Regulations made under the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.));

“cost of labour” of a qualified corporation for a taxation year means the amount determined in respect of the corporation for the year under the definition of “cost of labour” in section 5202 of the Income Tax Regulations made under the Income Tax Act;

“cost of manufacturing and processing capital” of a manufacturing corporation for a taxation year means the amount determined in respect of the corporation for the year under the definition of “cost of manufacturing and processing capital” in section 5202 of the Income Tax Regulations made under the Income Tax Act;

“intermediate area” means an area that is

(a)  the territory of any of the following regions described in the Décret concernant la révision des limites des régions administratives du Québec (chapter D-11, r. 1), or any part of such a region:

i.  administrative region 03 Capitale-Nationale, except the part of the territory comprising the territory of the municipalities in the Québec census metropolitan area as described in the Standard Geographical Classification (SGC) 2011 published by Statistics Canada and the territory of Municipalité régionale de comté de Charlevoix-Est,

ii.  the southern part of administrative region 04 Mauricie that includes the territory of the cities of Trois-Rivières and Shawinigan and the territory of the regional county municipalities of Chenaux and Maskinongé,

iii.  the western part of administrative region 05 Estrie that includes the territory of Ville de Sherbrooke and of the regional county municipalities of Memphrémagog, Val-Saint-François, des Sources and Coaticook,

iv.  administrative region 12 Chaudière-Appalaches, except the part of the territory comprising the territory of the municipalities in the Québec census metropolitan area as described in the Standard Geographical Classification (SGC) 2011 published by Statistics Canada,

v.  administrative region 14 Lanaudière, except the part of the territory comprising the territory of the municipalities in the Montréal census metropolitan area as described in the Standard Geographical Classification (SGC) 2011 published by Statistics Canada,

vi.  administrative region 15 Laurentides, except the part of the territory comprising the territory of the municipalities in the Montréal census metropolitan area as described in the Standard Geographical Classification (SGC) 2011 published by Statistics Canada, and the territory of Municipalité régionale de comté d’Antoine-Labelle,

vii.  administrative region 16 Montérégie, except the part of the territory comprising the territory of the municipalities in the Montréal census metropolitan area as described in the Standard Geographical Classification (SGC) 2011 published by Statistics Canada, and

viii.  administrative region 17 Centre-du-Québec; or

(b)  the territory of Municipalité régionale de comté de Papineau;

“manufacturing corporation” for a taxation year means a Canadian-controlled private corporation the proportion of the manufacturing or processing activities of which for the year is greater than 25%;

“proportion of the manufacturing or processing activities” of a manufacturing corporation for a taxation year means the proportion that the amount determined in respect of the corporation for the year under paragraph a of section 5200 of the Income Tax Regulations made under the Income Tax Act is of the amount determined in respect of the corporation for the year under paragraph b of section 5200 of those Regulations;

“qualified corporation” for a taxation year means a Canadian-controlled private corporation more than 50% of the cost of labour or cost of capital of which for the taxation year is attributable to a business that it operates in a special remote area;

“remote area” means an area that is

(a)  the territory of any of the following regions described in the Décret concernant la révision des limites des régions administratives du Québec, or any part of such a region:

i.  administrative region 01 Bas-Saint-Laurent,

ii.  administrative region 02 Saguenay–Lac-Saint-Jean,

iii.  the eastern part of administrative region 05 Estrie that includes the territory of the regional county municipalities of Granit and Haut-Saint-François,

iv.  administrative region 08 Abitibi-Témiscamingue,

v.  administrative region 09 Côte-Nord, except the part of the region within the territory of Municipalité de l’Île-d’Anticosti and of Municipalité régionale de comté du Golfe-du-Saint-Laurent,

vi.  administrative region 10 Nord-du-Québec, except the part of the region within the territory of the Kativik Regional Government, and

vii.  the part of administrative region 11 Gaspésie–Îles-de-la-Madeleine comprising the territory of the regional county municipalities of Avignon, Bonaventure, Côte-de-Gaspé, Haute-Gaspésie and Rocher-Percé;

(b)  the territory of any of the following regional county municipalities:

i.  Municipalité régionale de comté d’Antoine-Labelle,

ii.  Municipalité régionale de comté de Charlevoix-Est,

iii.  Municipalité régionale de comté de La Vallée-de-la-Gatineau,

iv.  Municipalité régionale de comté de Mékinac, and

v.  Municipalité régionale de comté de Pontiac; or

(c)  the territory of the urban agglomeration of La Tuque as described in section 8 of the Act respecting certain municipal powers in certain urban agglomerations (chapter E-20.001);

“special remote area” means an area that is

(a)  the territory of Municipalité de l’Île-d’Anticosti;

(b)  the territory of the urban agglomeration of Îles-de-la-Madeleine as described in section 9 of the Act respecting certain municipal powers in certain urban agglomerations;

(c)  the territory of Municipalité régionale de comté du Golfe-du-Saint-Laurent; or

(d)  the territory of the Kativik Regional Government.

2015, c. 21, s. 125; 2015, c. 24, s. 29; 2017, c. 29, s. 42.

2015-10-26

156.11. In this division,

“additional deduction rate” that applies to a manufacturing corporation for a taxation year means, subject to sections 156.12 and 156.13,

(a)  0%, if the major portion of the corporation’s cost of manufacturing and processing capital for the year is attributable to property it uses outside the central area, the intermediate area, the remote area and the special remote area;

(a.1)  1%, if the major portion of the corporation’s cost of manufacturing and processing capital for the year is attributable to property it uses in the central area;

(b)  3%, if the major portion of the corporation’s cost of manufacturing and processing capital for the year is attributable to property it uses in the intermediate area;

(c)  5%, if the major portion of the corporation’s cost of manufacturing and processing capital for the year is attributable to property it uses in the remote area; or

(d)  7%, if the major portion of the corporation’s cost of manufacturing and processing capital for the year is attributable to property it uses in the special remote area;

“central area” means an area that includes the part of the territory of Québec that is not included in the intermediate area, the remote area and the special remote area;

“cost of manufacturing and processing capital” of a manufacturing corporation for a taxation year means the amount determined in respect of the corporation for the year under the definition of “cost of manufacturing and processing capital” in section 5202 of the Income Tax Regulations made under the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.));

“intermediate area” means an area that is

(a)  the territory of any of the following regions described in the Décret concernant la révision des limites des régions administratives du Québec (chapter D-11, r. 1), or any part of such a region:

i.  administrative region 03 Capitale-Nationale, except the part of the territory comprising the territory of the municipalities in the Québec census metropolitan area as described in the Standard Geographical Classification (SGC) 2011 published by Statistics Canada and the territory of Municipalité régionale de comté de Charlevoix-Est,

ii.  the southern part of administrative region 04 Mauricie that includes the territory of the cities of Trois-Rivières and Shawinigan and the territory of the regional county municipalities of Chenaux and Maskinongé,

iii.  the western part of administrative region 05 Estrie that includes the territory of Ville de Sherbrooke and of the regional county municipalities of Memphrémagog, Val-Saint-François, des Sources and Coaticook,

iv.  administrative region 12 Chaudière-Appalaches, except the part of the territory comprising the territory of the municipalities in the Québec census metropolitan area as described in the Standard Geographical Classification (SGC) 2011 published by Statistics Canada,

v.  administrative region 14 Lanaudière, except the part of the territory comprising the territory of the municipalities in the Montréal census metropolitan area as described in the Standard Geographical Classification (SGC) 2011 published by Statistics Canada,

vi.  administrative region 15 Laurentides, except the part of the territory comprising the territory of the municipalities in the Montréal census metropolitan area as described in the Standard Geographical Classification (SGC) 2011 published by Statistics Canada, and the territory of Municipalité régionale de comté d’Antoine-Labelle,

vii.  administrative region 16 Montérégie, except the part of the territory comprising the territory of the municipalities in the Montréal census metropolitan area as described in the Standard Geographical Classification (SGC) 2011 published by Statistics Canada, and

viii.  administrative region 17 Centre-du-Québec; or

(b)  the territory of Municipalité régionale de comté de Papineau;

“manufacturing corporation” for a taxation year means a Canadian-controlled private corporation the proportion of the manufacturing or processing activities of which for the year is greater than 25%;

“proportion of the manufacturing or processing activities” of a manufacturing corporation for a taxation year means the proportion that the amount determined in respect of the corporation for the year under paragraph a of section 5200 of the Income Tax Regulations made under the Income Tax Act is of the amount determined in respect of the corporation for the year under paragraph b of section 5200 of those Regulations;

“remote area” means an area that is

(a)  the territory of any of the following regions described in the Décret concernant la révision des limites des régions administratives du Québec, or any part of such a region:

i.  administrative region 01 Bas-Saint-Laurent,

ii.  administrative region 02 Saguenay–Lac-Saint-Jean,

iii.  the eastern part of administrative region 05 Estrie that includes the territory of the regional county municipalities of Granit and Haut-Saint-François,

iv.  administrative region 08 Abitibi-Témiscamingue,

v.  administrative region 09 Côte-Nord, except the part of the region within the territory of Municipalité de l’Île-d’Anticosti and of Municipalité régionale de comté du Golfe-du-Saint-Laurent,

vi.  administrative region 10 Nord-du-Québec, except the part of the region within the territory of the Kativik Regional Government, and

vii.  the part of administrative region 11 Gaspésie–Îles-de-la-Madeleine comprising the territory of the regional county municipalities of Avignon, Bonaventure, Côte-de-Gaspé, Haute-Gaspésie and Rocher-Percé;

(b)  the territory of any of the following regional county municipalities:

i.  Municipalité régionale de comté d’Antoine-Labelle,

ii.  Municipalité régionale de comté de Charlevoix-Est,

iii.  Municipalité régionale de comté de La Vallée-de-la-Gatineau,

iv.  Municipalité régionale de comté de Mékinac, and

v.  Municipalité régionale de comté de Pontiac; or

(c)  the territory of the urban agglomeration of La Tuque as described in section 8 of the Act respecting certain municipal powers in certain urban agglomerations (chapter E-20.001);

“special remote area” means an area that is

(a)  the territory of Municipalité de l’Île-d’Anticosti;

(b)  the territory of the urban agglomeration of Îles-de-la-Madeleine as described in section 9 of the Act respecting certain municipal powers in certain urban agglomerations;

(c)  the territory of Municipalité régionale de comté du Golfe-du-Saint-Laurent; or

(d)  the territory of the Kativik Regional Government.

2015, c. 21, s. 125; 2015, c. 24, s. 29.

2015-10-21

156.11. In this division,

“additional deduction rate” that applies to a manufacturing corporation for a taxation year means, subject to sections 156.12 and 156.13,

(a)  0%, if the major portion of the corporation’s cost of manufacturing and processing capital for the year is attributable to goods it uses outside the intermediate area, the remote area and the special remote area;

(b)  2%, if the major portion of the corporation’s cost of manufacturing and processing capital for the year is attributable to goods it uses in the intermediate area;

(c)  4%, if the major portion of the corporation’s cost of manufacturing and processing capital for the year is attributable to goods it uses in the remote area; or

(d)  6%, if the major portion of the corporation’s cost of manufacturing and processing capital for the year is attributable to goods it uses in the special remote area;

“cost of manufacturing and processing capital” of a manufacturing corporation for a taxation year means the amount determined in respect of the corporation for the year under the definition of “cost of manufacturing and processing capital” in section 5202 of the Income Tax Regulations made under the Income Tax Act (R.S.C. 1985, c. 1, (5th Suppl.));

“intermediate area” means an area that is

(a)  the territory of any of the following regions described in the Décret concernant la révision des limites des régions administratives du Québec (chapitre D-11, r. 1), or any part of such a region:

i.  administrative region 03 Capitale-Nationale, except the part of the territory comprising the territory of the municipalities in the Québec census metropolitan area as described in the Standard Geographical Classification (SGC) 2011 published by Statistics Canada and the territory of Municipalité régionale de comté de Charlevoix-Est,

ii.  the southern part of administrative region 04 Mauricie that includes the territory of the cities of Trois-Rivières and Shawinigan and the territory of the regional county municipalities of Chenaux and Maskinongé,

iii.  the western part of administrative region 05 Estrie that includes the territory of Ville de Sherbrooke and of the regional county municipalities of Memphrémagog, Val-Saint-François, des Sources and Coaticook,

iv.  administrative region 12 Chaudière-Appalaches, except the part of the territory comprising the territory of the municipalities in the Québec census metropolitan area as described in the Standard Geographical Classification (SGC) 2011 published by Statistics Canada,

v.  administrative region 14 Lanaudière, except the part of the territory comprising the territory of the municipalities in the Montréal census metropolitan area as described in the Standard Geographical Classification (SGC) 2011 published by Statistics Canada,

vi.  administrative region 15 Laurentides, except the part of the territory comprising the territory of the municipalities in the Montréal census metropolitan area as described in the Standard Geographical Classification (SGC) 2011 published by Statistics Canada, and the territory of Municipalité régionale de comté d’Antoine-Labelle,

vii.  administrative region 16 Montérégie, except the part of the territory comprising the territory of the municipalities in the Montréal census metropolitan area as described in the Standard Geographical Classification (SGC) 2011 published by Statistics Canada, and

vii.  administrative region 17 Centre-du-Québec; or

(b)  the territory of Municipalité régionale de comté de Papineau;

“manufacturing corporation” for a taxation year means a Canadian-controlled private corporation the proportion of the manufacturing or processing activities of which for the year is greater than 25%;

“proportion of the manufacturing or processing activities” of a manufacturing corporation for a taxation year means the proportion that the amount determined in respect of the corporation for the year under paragraph a of section 5200 of the Income Tax Regulations made under the Income Tax Act is of the amount determined in respect of the corporation for the year under paragraph b of section 5200 of those Regulations;

“remote area” means an area that is

(a)  the territory of any of the following regions described in the Décret concernant la révision des limites des régions administratives du Québec, or any part of such a region:

i.  administrative region 01 Bas-Saint-Laurent,

ii.  administrative region 02 Saguenay–Lac-Saint-Jean,

iii.  the eastern part of administrative region 05 Estrie that includes the territory of the regional county municipalities of Granit and Haut-Saint-François,

iv.  administrative region 08 Abitibi-Témiscamingue,

v.  administrative region 09 Côte-Nord, except the part of the region within the territory of Municipalité de l’Île-d’Anticosti and of Municipalité régionale de comté du Golfe-du-Saint-Laurent,

vi.  administrative region 10 Nord-du-Québec, except the part of the region within the territory of the Kativik Regional Government, and

vii.  the part of administrative region 11 Gaspésie–Îles-de-la-Madeleine comprising the territory of the regional county municipalities of Avignon, Bonaventure, Côte-de-Gaspé, Haute-Gaspésie and Rocher-Percé;

(b)  the territory of any of the following regional county municipalities:

i.  Municipalité régionale de comté d’Antoine-Labelle,

ii.  Municipalité régionale de comté de Charlevoix-Est,

iii.  Municipalité régionale de comté de La Vallée-de-la-Gatineau,

iv.  Municipalité régionale de comté de Mékinac, and

v.  Municipalité régionale de comté de Pontiac; or

(c)  the territory of the urban agglomeration of La Tuque as described in section 8 of the Act respecting certain municipal powers in certain urban agglomerations (chapter E-20.001);

“special remote area” means an area that is

(a)  the territory of Municipalité de l’Île-d’Anticosti;

(b)  the territory of the urban agglomeration of Îles-de-la-Madeleine as described in section 9 of the Act respecting certain municipal powers in certain urban agglomerations;

(c)  the territory of Municipalité régionale de comté du Golfe-du-Saint-Laurent; or

(d)  the territory of the Kativik Regional Government,

2015, c. 21, s. 125.