I-3 - Taxation Act

Section 737.18.43 Disposition versions

2023-03-15

737.18.43. In this Title,

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII; or

(b)  a corporation that would be exempt from tax for the year under section 985, but for section 192;

“gross revenue from the commercialization of an asset” of a corporation for a taxation year means the portion of the corporation’s gross revenue for the year that is reasonably attributable to an establishment of the corporation situated in Québec and that consists of

(a)  a payment (in this Title referred to as a “royalty”) for the use of or the right to use the asset;

(b)  income from the sale, rental or lease of a property incorporating the asset;

(c)  income from the provision of a service intrinsically linked to the asset; and

(d)  an amount obtained as damages in the context of a remedy of a judicial nature relating to the asset;

“protected invention” of a corporation means an invention that meets either of the following conditions:

(a)  the invention is covered by a valid patent or certificate of supplementary protection that was applied for after 17 March 2016 and of which the corporation is the holder under the Patent Act (R.S.C. 1985, c. P-4) or any other Act having the same effect of a jurisdiction other than Canada; or

(b)  the invention was the subject of an application for a patent or certificate of supplementary protection by the corporation, after 17 March 2016, in accordance with the requirements of an Act referred to in paragraph a, and a decision regarding the application is pending;

“protected plant variety” of a corporation means a new plant variety, within the meaning of section 2 of the Plant Breeders’ Rights Act (S.C. 1990, c. 20), that is originated, discovered or developed and that meets either of the following conditions:

(a)  the plant variety is the subject of a valid certificate of plant breeder’s rights that was applied for after 10 March 2020 and of which the corporation is the holder under the Plant Breeders’ Rights Act or any other Act having the same effect of a jurisdiction other than Canada; or

(b)  the plant variety was the subject of an application for a certificate of plant breeder’s rights by the corporation, after 10 March 2020, in accordance with the requirements of an Act referred to in paragraph a, and a decision regarding the application is pending;

“protected software” of a corporation means a computer program, within the meaning of section 2 of the Copyright Act (R.S.C. 1985, c. 42), in respect of which the following conditions are met:

(a)  the corporation is the holder of the copyright on the computer program under the Copyright Act or any other Act having the same effect of a jurisdiction other than Canada; and

(b)  the creation date of the computer program is subsequent to 10 March 2020;

“qualified corporation” for a taxation year means a corporation, other than an excluded corporation, that, at a particular time in the year, has an establishment in Québec, carries on a business in Québec and earns income from the commercialization of a qualified intellectual property asset;

“qualified intellectual property asset” of a corporation means an incorporeal property that meets the following conditions:

(a)  it is

i.  a protected invention of the corporation,

ii.  a protected plant variety of the corporation, or

iii.  a protected software of the corporation; and

(b)  it results from scientific research and experimental development activities that are carried on in whole or in part in Québec and that contribute significantly to the creation, development or improvement of the property.

2021, c. 14, s. 76; 2023, c. 2, s. 19.

2021-06-02

737.18.43. In this Title,

“excluded corporation” for a taxation year means

(a)  a corporation that is exempt from tax for the year under Book VIII; or

(b)  a corporation that would be exempt from tax for the year under section 985, but for section 192;

“gross revenue from the commercialization of an asset” of a corporation for a taxation year means the portion of the corporation’s gross revenue for the year that is reasonably attributable to an establishment of the corporation situated in Québec and that consists of

(a)  a payment (in this Title referred to as a “royalty”) for the use of or the right to use the asset;

(b)  income from the sale, rental or lease of a property incorporating the asset;

(c)  income from the provision of a service intrinsically linked to the asset; and

(d)  an amount obtained as damages in the context of a remedy of a judicial nature relating to the asset;

“protected invention” of a corporation means an invention that meets either of the following conditions:

(a)  the invention is covered by a valid patent or certificate of supplementary protection that was applied for after 17 March 2016 and of which the corporation is the holder under the Patent Act (R.S.C. 1985, c. P-4) or any other Act having the same effect of a jurisdiction other than Canada; or

(b)  the invention was the subject of an application for a patent or certificate of supplementary protection by the corporation, after 17 March 2016, in accordance with the requirements of an Act referred to in paragraph a, and a decision regarding the application is pending;

“protected plant variety” of a corporation means a new plant variety, within the meaning of section 2 of the Plant Breeders’ Rights Act (S.C. 1990, c. 20), that is originated, discovered or developed and that meets either of the following conditions:

(a)  the plant variety is the subject of a valid certificate of plant breeder’s rights that was applied for after 10 March 2020 and of which the corporation is the holder under the Plant Breeders’ Rights Act or any other Act having the same effect of a jurisdiction other than Canada; or

(b)  the plant variety was the subject of an application for a certificate of plant breeder’s rights by the corporation, after 10 March 2020, in accordance with the requirements of an Act referred to in paragraph a, and a decision regarding the application is pending;

“protected software” of a corporation means a computer program, within the meaning of section 2 of the Copyright Act (R.S.C. 1985, c. 42), in respect of which the following conditions are met:

(a)  the corporation is the holder of the copyright on the computer program under the Copyright Act or any other Act having the same effect of a jurisdiction other than Canada; and

(b)  the creation date of the computer program is subsequent to 10 March 2020;

“qualified corporation” for a taxation year means a corporation, other than an excluded corporation, that, at a particular time in the year, has an establishment in Québec, carries on a business in Québec and earns income from the commercialization of a qualified intellectual property asset;

“qualified intellectual property asset” of a corporation means an incorporeal property that results from scientific research and experimental development activities carried on in whole or in part in Québec and that is

(a)  a protected invention of the corporation;

(b)  a protected plant variety of the corporation; or

(c)  a protected software of the corporation.

2021, c. 14, s. 76.