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P-5.1 - Act respecting the sectoral parameters of certain fiscal measures

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SCHEDULE D
MINISTER OF HIGHER EDUCATION, RESEARCH, SCIENCE AND TECHNOLOGY
CHAPTER I
MEASURES COVERED BY THIS SCHEDULE
1.1. The Minister of Higher Education, Research, Science and Technology administers the sectoral parameters of the following fiscal measures:
(1) the deduction in respect of a foreign researcher on a postdoctoral internship provided for in sections 737.22.0.0.1 to 737.22.0.0.4 of the Taxation Act (chapter I-3);
(2) the deduction in respect of foreign professors provided for in sections 737.22.0.5 to 737.22.0.8 of the Taxation Act;
(3) (paragraph repealed);
(4) (paragraph repealed);
(5) (paragraph repealed);
(6) (paragraph repealed).
CHAPTER II
SECTORAL PARAMETERS OF DEDUCTION IN RESPECT OF FOREIGN RESEARCHERS ON POSTDOCTORAL INTERNSHIP
DIVISION I
INTERPRETATION AND GENERAL
2.1. In this chapter, unless the context indicates otherwise,
“eligible employer” means an eligible public research centre or an eligible university entity;
“eligible public research centre” means a centre or body that is an eligible public research centre for the purposes of Division II.1 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act;
“eligible university entity” means an entity that is an eligible university entity for the purposes of Division II.1 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act;
“tax holiday for a foreign researcher on a postdoctoral internship” means the fiscal measure provided for in Title VII.3.0.1 of Book IV of Part I of the Taxation Act, under which an individual may deduct an amount in computing his or her taxable income for a taxation year.
2.2. In order for an individual who works for an eligible employer to benefit from the tax holiday for a foreign researcher on a postdoctoral internship for a taxation year, the eligible employer must obtain a certificate in respect of the individual (in this chapter referred to as a “researcher certificate”) from the Minister. The certificate must be obtained for each taxation year for which the individual may claim the tax holiday.
The employer must file the application for the certificate before 1 March of the calendar year that follows the individual’s taxation year concerned.
DIVISION II
RESEARCHER CERTIFICATE
2.3. A researcher certificate issued to an eligible employer certifies that the individual referred to in the certificate is recognized as a researcher on a postdoctoral internship in respect of the employer for the taxation year for which the application for the certificate was made or for the part of the year specified in it.
2.4. An individual may be recognized as a researcher on a postdoctoral internship in respect of an eligible employer if
(1) the individual is specialized in the field of pure or applied science or a related field;
(2) the individual holds, subject to the second paragraph, a doctoral degree in one of the fields referred to in subparagraph 1 or another degree that, in the Minister’s opinion, is equivalent;
(3) the individual is serving a full-time postdoctoral internship as a researcher with the employer for a set term; and
(4) the individual’s duties with the employer are performed exclusively or almost exclusively, on a continuous basis, as a researcher within the scope of the postdoctoral internship.
For the condition of subparagraph 2 of the first paragraph to be met, not more than five years may have elapsed, at the time the individual begins a full-time postdoctoral internship with the eligible employer for the first time, since the individual obtained the diploma referred to in that subparagraph. However, if, before beginning that first internship, the individual temporarily interrupted his or her research activities for reasons the Minister considers reasonable, the time elapsed may be longer, but must not exceed 10 years.
2.5. If an individual is temporarily absent from work for reasons the Minister considers reasonable, the Minister may, for the purpose of determining whether the individual meets the conditions for recognition as a researcher on a postdoctoral internship in respect of an eligible employer, consider that the individual continued to perform his or her duties throughout the period of absence exactly as he or she was performing them immediately before the beginning of that period.
2.6. An eligible employer to which a researcher certificate is issued for a taxation year must promptly send a copy of the certificate to the individual concerned so that it may be attached to his or her fiscal return for the year.
CHAPTER III
SECTORAL PARAMETERS OF DEDUCTION IN RESPECT OF FOREIGN PROFESSORS
DIVISION I
INTERPRETATION AND GENERAL
3.1. In this chapter, unless the context indicates otherwise,
“eligible employer” means a Québec university;
“foreign professor tax holiday” means the fiscal measure provided for in Title VII.3.2 of Book IV of Part I of the Taxation Act, under which an individual may deduct an amount in computing the individual’s taxable income for a taxation year.
3.2. In order for an individual who works for an eligible employer to benefit from the foreign professor tax holiday for a taxation year, the eligible employer must obtain a certificate in respect of the individual (in this chapter referred to as a “professor certificate”) from the Minister. The certificate must be obtained for each taxation year for which the individual may claim the tax holiday.
The employer must file the application for the certificate before 1 March of the calendar year that follows the individual’s taxation year concerned.
DIVISION II
PROFESSOR CERTIFICATE
3.3. A professor certificate issued to an eligible employer certifies that the individual referred to in the certificate is recognized as a professor in respect of the employer for the taxation year for which the application for the certificate was made or for the part of the year specified in it.
3.4. An individual may be recognized as a professor in respect of an eligible employer if
(1) the individual holds a position as a professor with the employer;
(2) the individual is specialized in the field of science and engineering, finance, health or new information and communication technologies;
(3) the individual holds a doctoral degree in one of the fields referred to in paragraph 2 or another degree that, in the Minister’s opinion, is equivalent; and
(4) the individual’s duties with the employer are performed exclusively or almost exclusively, on a continuous basis, as a professor in one of the fields referred to in paragraph 2.
3.5. If an individual is temporarily absent from work for reasons the Minister considers reasonable, the Minister may, for the purpose of determining whether the individual meets the conditions for recognition as a professor in respect of an eligible employer, consider that the individual continued to perform the his or her duties throughout the period of absence exactly as he or she was performing them immediately before the beginning of that period.
3.6. An eligible employer to which a professor certificate is issued for a taxation year must promptly send a copy of the certificate to the individual concerned so that it may be attached to his or her fiscal return for the year.
CHAPTER IV
Chapter renumbered, see Chapter III of Schedule C (2019, c. 29, s. 104).
DIVISION I
Division renumbered, see Division I of Chapter III of Schedule C (2019, c. 29, s. 104).
4.1. (Section renumbered, see section 3.1 of Chapter III of Schedule C; 2019, c. 29, s. 104).
4.2. (Section renumbered, see section 3.2 of Chapter III of Schedule C; 2019, c. 29, s. 104).
DIVISION II
Division renumbered, see Division II of Chapter III of Schedule C (2019, c. 29, s. 104).
4.3. (Section renumbered, see section 3.3 of Chapter III of Schedule C; 2019, c. 29, s. 104).
4.4. (Section renumbered, see section 3.4 of Chapter III of Schedule C; 2019, c. 29, s. 104).
4.5. (Section renumbered, see section 3.5 of Chapter III of Schedule C; 2019, c. 29, s. 104).
CHAPTER V
Chapter renumbered, see Chapter IV of Schedule C (2019, c. 29, s. 104).
DIVISION I
Division renumbered, see Division I of Chapter IV of Schedule C (2019, c. 29, s. 104).
5.1. (Section renumbered, see section 4.1 of Chapter IV of Schedule C; 2019, c. 29, s. 104).
5.2. (Section renumbered, see section 4.2 of Chapter IV of Schedule C; 2019, c. 29, s. 104).
DIVISION II
Division renumbered, see Division II of Chapter IV of Schedule C (2019, c. 29, s. 104).
5.3. (Section renumbered, see section 4.3 of Chapter IV of Schedule C; 2019, c. 29, s. 104).
5.4. (Section renumbered, see section 4.4 of Chapter IV of Schedule C; 2019, c. 29, s. 104).
5.5. (Section renumbered, see section 4.5 of Chapter IV of Schedule C; 2019, c. 29, s. 104).
5.6. (Section renumbered, see section 4.6 of Chapter IV of Schedule C; 2019, c. 29, s. 104).
CHAPTER VI
Chapter renumbered, see Chapter VI of Schedule C (2019, c. 29, s. 104).
DIVISION I
Division renumbered, see Division I of Chapter VI of Schedule C (2019, c. 29, s. 104).
6.1. (Section renumbered, see section 6.1 of Chapter VI of Schedule C; 2019, c. 29, s. 104).
6.2. (Section renumbered, see section 6.2 of Chapter VI of Schedule C; 2019, c. 29, s. 104).
DIVISION II
Division renumbered, see Division II of Chapter VI of Schedule C (2019, c. 29, s. 104).
6.3. (Section renumbered, see section 6.3 of Chapter VI of Schedule C; 2019, c. 29, s. 104).
6.4. (Section renumbered, see section 6.4 of Chapter VI of Schedule C; 2019, c. 29, s. 104).
6.5. (Section renumbered, see section 6.5 of Chapter VI of Schedule C; 2019, c. 29, s. 104).
CHAPTER VII
Chapter renumbered, see Chapter VII of Schedule C (2019, c. 29, s. 104).
DIVISION I
Division renumbered, see Division I of Chapter VII of Schedule C (2019, c. 29, s. 104).
7.1. (Section renumbered, see section 7.1 of Chapter VII of Schedule C; 2019, c. 29, s. 104).
7.2. (Section renumbered, see section 7.2 of Chapter VII of Schedule C; 2019, c. 29, s. 104).
DIVISION II
Division renumbered, see Division II of Chapter VII of Schedule C (2019, c. 29, s. 104).
7.3. (Section renumbered, see section 7.3 of Chapter VII of Schedule C; 2019, c. 29, s. 104).
7.4. (Section renumbered, see section 7.4 of Chapter VII of Schedule C; 2019, c. 29, s. 104).
7.5. (Section renumbered, see section 7.5 of Chapter VII of Schedule C; 2019, c. 29, s. 104).
2012, c. 1, Schedule D; 2013, c. 28, s. 175 to s. 177; 2019, c. 29, ss. 103 and 104.
SCHEDULE D
MINISTER OF HIGHER EDUCATION, RESEARCH, SCIENCE AND TECHNOLOGY
CHAPTER I
MEASURES COVERED BY THIS SCHEDULE
1.1. The Minister of Higher Education, Research, Science and Technology administers the sectoral parameters of the following fiscal measures:
(1) the deduction in respect of a foreign researcher on a postdoctoral internship provided for in sections 737.22.0.0.1 to 737.22.0.0.4 of the Taxation Act (chapter I-3);
(2) the deduction in respect of foreign professors provided for in sections 737.22.0.5 to 737.22.0.8 of the Taxation Act;
(3) the deduction in respect of foreign researchers provided for in sections 737.19 to 737.22 of the Taxation Act;
(4) the deduction in respect of foreign experts provided for in sections 737.22.0.0.5 to 737.22.0.0.8 of the Taxation Act;
(5) the refundable tax credit for university research and for research carried on by a public research centre or a research consortium and the tax credit for fees and dues paid to a research consortium provided for in sections 1029.8.1 to 1029.8.7 and 1029.8.9.0.2 to 1029.8.9.0.4 of the Taxation Act; and
(6) the tax credit for private partnership pre-competitive research provided for in sections 1029.8.16.1.1 to 1029.8.16.1.9 of the Taxation Act.
CHAPTER II
SECTORAL PARAMETERS OF DEDUCTION IN RESPECT OF FOREIGN RESEARCHERS ON POSTDOCTORAL INTERNSHIP
DIVISION I
INTERPRETATION AND GENERAL
2.1. In this chapter, unless the context indicates otherwise,
“eligible employer” means an eligible public research centre or an eligible university entity;
“eligible public research centre” means a centre or body that is an eligible public research centre for the purposes of Division II.1 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act;
“eligible university entity” means an entity that is an eligible university entity for the purposes of Division II.1 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act;
“tax holiday for a foreign researcher on a postdoctoral internship” means the fiscal measure provided for in Title VII.3.0.1 of Book IV of Part I of the Taxation Act, under which an individual may deduct an amount in computing his or her taxable income for a taxation year.
2.2. In order for an individual who works for an eligible employer to benefit from the tax holiday for a foreign researcher on a postdoctoral internship for a taxation year, the eligible employer must obtain a certificate in respect of the individual (in this chapter referred to as a “researcher certificate”) from the Minister. The certificate must be obtained for each taxation year for which the individual may claim the tax holiday.
The employer must file the application for the certificate before 1 March of the calendar year that follows the individual’s taxation year concerned.
DIVISION II
RESEARCHER CERTIFICATE
2.3. A researcher certificate issued to an eligible employer certifies that the individual referred to in the certificate is recognized as a researcher on a postdoctoral internship in respect of the employer for the taxation year for which the application for the certificate was made or for the part of the year specified in it.
2.4. An individual may be recognized as a researcher on a postdoctoral internship in respect of an eligible employer if
(1) the individual is specialized in the field of pure or applied science or a related field;
(2) the individual holds, subject to the second paragraph, a doctoral degree in one of the fields referred to in subparagraph 1 or another degree that, in the Minister’s opinion, is equivalent;
(3) the individual is serving a full-time postdoctoral internship as a researcher with the employer for a set term; and
(4) the individual’s duties with the employer are performed exclusively or almost exclusively, on a continuous basis, as a researcher within the scope of the postdoctoral internship.
For the condition of subparagraph 2 of the first paragraph to be met, not more than five years may have elapsed, at the time the individual begins a full-time postdoctoral internship with the eligible employer for the first time, since the individual obtained the diploma referred to in that subparagraph. However, if, before beginning that first internship, the individual temporarily interrupted his or her research activities for reasons the Minister considers reasonable, the time elapsed may be longer, but must not exceed 10 years.
2.5. If an individual is temporarily absent from work for reasons the Minister considers reasonable, the Minister may, for the purpose of determining whether the individual meets the conditions for recognition as a researcher on a postdoctoral internship in respect of an eligible employer, consider that the individual continued to perform his or her duties throughout the period of absence exactly as he or she was performing them immediately before the beginning of that period.
2.6. An eligible employer to which a researcher certificate is issued for a taxation year must promptly send a copy of the certificate to the individual concerned so that it may be attached to his or her fiscal return for the year.
CHAPTER III
SECTORAL PARAMETERS OF DEDUCTION IN RESPECT OF FOREIGN PROFESSORS
DIVISION I
INTERPRETATION AND GENERAL
3.1. In this chapter, unless the context indicates otherwise,
“eligible employer” means a Québec university;
“foreign professor tax holiday” means the fiscal measure provided for in Title VII.3.2 of Book IV of Part I of the Taxation Act, under which an individual may deduct an amount in computing the individual’s taxable income for a taxation year.
3.2. In order for an individual who works for an eligible employer to benefit from the foreign professor tax holiday for a taxation year, the eligible employer must obtain a certificate in respect of the individual (in this chapter referred to as a “professor certificate”) from the Minister. The certificate must be obtained for each taxation year for which the individual may claim the tax holiday.
The employer must file the application for the certificate before 1 March of the calendar year that follows the individual’s taxation year concerned.
DIVISION II
PROFESSOR CERTIFICATE
3.3. A professor certificate issued to an eligible employer certifies that the individual referred to in the certificate is recognized as a professor in respect of the employer for the taxation year for which the application for the certificate was made or for the part of the year specified in it.
3.4. An individual may be recognized as a professor in respect of an eligible employer if
(1) the individual holds a position as a professor with the employer;
(2) the individual is specialized in the field of science and engineering, finance, health or new information and communication technologies;
(3) the individual holds a doctoral degree in one of the fields referred to in paragraph 2 or another degree that, in the Minister’s opinion, is equivalent; and
(4) the individual’s duties with the employer are performed exclusively or almost exclusively, on a continuous basis, as a professor in one of the fields referred to in paragraph 2.
3.5. If an individual is temporarily absent from work for reasons the Minister considers reasonable, the Minister may, for the purpose of determining whether the individual meets the conditions for recognition as a professor in respect of an eligible employer, consider that the individual continued to perform the his or her duties throughout the period of absence exactly as he or she was performing them immediately before the beginning of that period.
3.6. An eligible employer to which a professor certificate is issued for a taxation year must promptly send a copy of the certificate to the individual concerned so that it may be attached to his or her fiscal return for the year.
CHAPTER IV
SECTORAL PARAMETERS OF DEDUCTION IN RESPECT OF FOREIGN RESEARCHERS
DIVISION I
INTERPRETATION AND GENERAL
4.1. In this chapter, unless the context indicates otherwise,
“eligible employer” means a person or partnership who declares to the Minister that the person or partnership is carrying on a business in Canada and undertaking or causing to be undertaken on the person’s or partnership’s behalf in Québec scientific research and experimental development related to a business of the person or partnership and that the person or partnership is neither an eligible university entity within the meaning of section 2.1 of Schedule D, nor a person exempt from tax under section 984 or 985 of the Taxation Act or that would be exempt from tax under that section 985 but for section 192 of that Act;
“foreign researcher tax holiday” means the fiscal measure provided for in Title VII.3 of Book IV of Part I of the Taxation Act, under which an individual may deduct an amount in computing the individual’s taxable income for a taxation year.
4.2. In order for an individual who works for an eligible employer to benefit from the foreign researcher tax holiday for a taxation year, the eligible employer must obtain a qualification certificate in respect of the foreign researcher (in this chapter referred to as a “researcher qualification certificate”) from the Minister.
The employer must file an application for the qualification certificate before 1 March of the calendar year that follows the individual’s taxation year for which he or she first claims the tax holiday.
DIVISION II
RESEARCHER QUALIFICATION CERTIFICATE
4.3. A researcher qualification certificate issued to an eligible employer certifies that the individual referred to in the certificate is recognized as a researcher.
4.4. To be recognized as a researcher, an individual must
(1) be specialized in the field of pure or applied science or a related field;
(2) hold, or possess knowledge equivalent to the knowledge acquired by the holder of, a Master’s degree recognized by a Québec university in any of the fields referred to in paragraph 1; and
(3) have the skills required to carry out scientific research and experimental development activities.
4.5. An eligible employer to which a researcher qualification certificate is issued must promptly send a copy of the certificate to the individual concerned so that it may be attached to his or her fiscal return.
CHAPTER V
SECTORAL PARAMETERS OF DEDUCTION IN RESPECT OF FOREIGN EXPERTS
DIVISION I
INTERPRETATION AND GENERAL
5.1. In this chapter, unless the context indicates otherwise,
“eligible employer” means a person or partnership who declares to the Minister that the person or partnership is carrying on a business in Canada for the period in which the person or partnership undertakes or causes to be undertaken on the person’s or partnership’s behalf in Québec, as part of a project, scientific research and experimental development related to a business of the person or partnership, as well as for the periods preceding and following the carrying out of the project, and that the person or partnership is neither an eligible university entity within the meaning of section 2.1 of Schedule D, nor a person mentioned in section 984 or 985 of the Taxation Act;
“foreign expert tax holiday” means the fiscal measure provided for in Title VII.3.0.2 of Book IV of Part I of the Taxation Act, under which an individual may deduct an amount in computing the individual’s taxable income for a taxation year.
5.2. In order for an individual who works for an eligible employer to benefit from the foreign expert tax holiday for a taxation year, the eligible employer must obtain a qualification certificate in respect of the individual (in this chapter referred to as an “expert qualification certificate”) from the Minister. The certificate must be obtained for each taxation year for which the individual may claim the tax holiday.
The employer must file an application for the qualification certificate before 1 March of the calendar year that follows the individual’s taxation year concerned.
DIVISION II
EXPERT QUALIFICATION CERTIFICATE
5.3. An expert qualification certificate issued to an eligible employer certifies that the individual referred to in the certificate is recognized as an expert in respect of the employer for the taxation year for which the application for the qualification certificate was made or for the part of the year specified in it.
5.4. In order for an individual to be recognized as an expert in respect of an eligible employer, the individual must
(1) be specialized in a field appropriate to the valorization of scientific research and experimental development results;
(2) hold, or possess knowledge equivalent to the knowledge acquired by the holder of, a diploma recognized by a Québec university in a field referred to in paragraph 1;
(3) have the skills required to carry out activities that consist in the valorization of the results deriving from the employer’s scientific research and experimental development projects, which activities include
(a) the management of innovation resulting from those projects,
(b) the commercialization and marketing of the results deriving from those projects,
(c) the transfer of advanced technologies resulting from those projects,
(d) the financing of scientific research and experimental development activities; and
(4) have duties with the employer that consist exclusively or almost exclusively, on a continuous basis, in carrying on activities that consist in the valorization of the results deriving from the employer’s scientific research and experimental development projects.
5.5. If an individual is temporarily absent from work for reasons the Minister considers reasonable, the Minister may, for the purpose of determining whether the individual meets the conditions for recognition as an expert in respect of an eligible employer, consider that the individual continued to perform his or her duties throughout the period of absence exactly as he or she was performing them immediately before the beginning of that period.
5.6. An eligible employer to which an expert qualification certificate is issued for a taxation year must promptly send a copy of the certificate to the individual concerned so that it may be attached to his or her fiscal return for the year.
CHAPTER VI
SECTORAL PARAMETERS OF TAX CREDIT FOR RESEARCH CARRIED ON BY RESEARCH CONSORTIUM AND OF TAX CREDIT FOR FEES AND DUES PAID TO RESEARCH CONSORTIUM
DIVISION I
INTERPRETATION AND GENERAL
6.1. In this chapter, unless the context indicates otherwise,
“research consortium” means a non-profit private research centre established in Canada whose members carry on businesses in the same sector of activity or in related sectors of activity;
“tax credit for fees and dues paid to a research consortium” means the fiscal measure provided for in Division II.2.1 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a person is deemed to have paid an amount to the Minister of Revenue on account of the person’s tax payable under that Part for a taxation year;
“tax credit for research carried on by a research consortium” means the fiscal measure provided for in Division II.1 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a person is deemed to have paid an amount to the Minister of Revenue on account of the person’s tax payable under that Part for a taxation year.
6.2. To be recognized as an eligible research consortium, for the purposes of the tax credit for research carried on by a research consortium and the tax credit for fees and dues paid to a research consortium, a body must obtain a certificate in its respect (in this chapter referred to as a “consortium certificate”) from the Minister.
DIVISION II
CONSORTIUM CERTIFICATE
6.3. A consortium certificate issued to a body certifies that the body is recognized as an eligible research consortium. Such a certificate is valid for an indeterminate period, unless otherwise specified in the certificate.
6.4. In order for a body to be recognized as an eligible research consortium, it must be a research consortium in respect of which the following conditions are met:
(1) the number of members forming the research consortium and their financial contribution are sufficiently representative of a sector of activity;
(2) the public or parapublic bodies operating in that sector of activity that are members of the research consortium do not constitute a majority of its members and do not provide the major part of its financing;
(3) the association agreement of the members of the research consortium requires that a research program concerning the members’ scientific and technological interests be established every year, and provides that the research results obtained will be available to all the members for use and development according to their specific needs;
(4) the mission of the research consortium is to carry on scientific research and experimental development work in Québec that is generic in nature and is not likely to lead to readily marketable results;
(5) the results of scientific research and experimental development work carried on by the research consortium may give rise to applications in various industrial sectors or to products that are commercially different among its members and that vary according to the use and development each may make of those results; and
(6) the research consortium has employees who have the skills required to carry on scientific research and experimental development work and has the premises and equipment needed to carry on that work in Québec.
The condition of subparagraph 3 of the first paragraph is not considered met if the association agreement does not clearly define the manner in which the research results obtained may be used and developed by the members of the research consortium.
The Minister may recognize only one research consortium per sector of activity.
6.5. A body that holds a valid consortium certificate must file a notice of change of status with the Minister if
(1) a change that has occurred in its human or physical resources could compromise its capacity to carry out scientific research and experimental development work;
(2) the composition of the consortium has changed significantly; or
(3) the association agreement of the members of the consortium or the consortium’s mission has been modified.
If a body fails to fulfil its obligation to file a notice of change of status, the Minister may revoke the consortium certificate issued to it.
CHAPTER VII
SECTORAL PARAMETERS OF TAX CREDIT FOR PRIVATE PARTNERSHIP PRE-COMPETITIVE RESEARCH
DIVISION I
INTERPRETATION AND GENERAL
7.1. In this chapter, unless the context indicates otherwise,
“research project” means a scientific research and experimental development project;
“tax credit for private partnership pre-competitive research” means the fiscal measure provided for in Division II.3.0.1 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act, under which a person is deemed to have paid an amount to the Minister on account of the person’s tax payable under that Part for a taxation year.
7.2. To benefit from the tax credit for private partnership pre-competitive research, in respect of a research project, a person or, if the person claims the tax credit as a member of a partnership, the partnership must obtain a certificate in that respect (in this chapter referred to as a “research project certificate”) from the Minister. Such a certificate is valid for a maximum period of three years.
DIVISION II
RESEARCH PROJECT CERTIFICATE
7.3. The Minister may not issue a research project certificate in respect of a research project provided for in a partnership agreement unless an application to that effect is filed with the Minister before the beginning of the project.
Despite the first paragraph, the Minister may issue a research project certificate to a person or a partnership in respect of a research project carried out within the scope of a partnership agreement to which the person or partnership is a party if
(1) the application for the certificate is filed with the Minister on or before the 90th day following the day on which the research project began; or
(2) the application for the certificate is filed with the Minister within three years following the day on which the research project began and
(a) the application could not be filed within the time provided in subparagraph 1 for reasons beyond the control of the person or of the members of the partnership,
(b) the application gives the reasons why it could not be filed within such time, and
(c) the Minister considers that the reasons put forward justify the admissibility of the application.
7.4. A research project certificate issued to a person or a partnership certifies that the research project referred to in it is a pre-competitive research project carried out under a partnership agreement to which the person or partnership is a party. The certificate also specifies the date on which its period of validity ends.
7.5. In order for a research project to be considered to be a pre-competitive research project carried out under a partnership agreement to which the person or partnership filing the application for a certificate is a party, the following conditions must be met:
(1) each party to the partnership agreement (in this section referred to as a “partner”) has a scientific and technological interest in seeing the research project carried out, and the purpose of the partnership agreement coincides with the respective interests of all the partners, even if their sectors of activity differ;
(2) the partners are on an equal footing and share responsibility for the research project, each partner assuming its own liability, without guaranteeing the liability of the other partners;
(3) the partners pool their contributions to the research project, which contributions may be inputs of equipment, efforts, cash, knowledge or expertise;
(4) the expected duration and the purpose of the research project are defined in the partnership agreement;
(5) the research project affords each partner the possibility of using the results, such that each partner has an interest in seeing the project carried out in order to benefit from the results with a view to enhance its growth;
(6) the research project will affect the partners, whether the project is successful or not;
(7) each partner is entitled to benefit from the research project results, the planned sharing of those results being based on the interests of each partner and having to be coherent with the pursuit of its technological development; in that respect, the partnership agreement must include the obligation to negotiate conditions relating to the rights of each of the partners to exploit the intellectual property deriving from the research project, and must govern the disclosure of information on the obtention of a patent protecting the intellectual property, if applicable;
(8) all the partners participate in managing the research project and no partner is subordinate to another; and
(9) each partner performs a part of the work required to carry out the research project, while participating in the overall research project.
For the purpose of determining whether the condition of subparagraph 8 of the first paragraph is met, the establishment of a management committee and the development of a decision-making or dispute settlement mechanism, which may be provided for in the partnership agreement, are indicators that the research project is managed jointly.
For the purposes of subparagraph 9 of the first paragraph, groups of researchers, developers or engineers are considered to participate in the overall research project if they separately carry out work related to various aspects of the research project and participate in study sessions and discussions to integrate their respective research results in the overall structure of the project.
2012, c. 1, Schedule D; 2013, c. 28, s. 175 to s. 177.
SCHEDULE D
MINISTER OF EDUCATION, RECREATION AND SPORTS
CHAPTER I
MEASURES COVERED BY THIS SCHEDULE
1.1. The Minister of Education, Recreation and Sports administers the sectoral parameters of the following fiscal measures:
(1) the deduction in respect of a foreign researcher on a postdoctoral internship provided for in sections 737.22.0.0.1 to 737.22.0.0.4 of the Taxation Act (chapter I-3); and
(2) the deduction in respect of foreign professors provided for in sections 737.22.0.5 to 737.22.0.8 of the Taxation Act.
CHAPTER II
SECTORAL PARAMETERS OF DEDUCTION IN RESPECT OF FOREIGN RESEARCHERS ON POSTDOCTORAL INTERNSHIP
DIVISION I
INTERPRETATION AND GENERAL
2.1. In this chapter, unless the context indicates otherwise,
“eligible employer” means an eligible public research centre or an eligible university entity;
“eligible public research centre” means a centre or body that is an eligible public research centre for the purposes of Division II.1 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act;
“eligible university entity” means an entity that is an eligible university entity for the purposes of Division II.1 of Chapter III.1 of Title III of Book IX of Part I of the Taxation Act;
“tax holiday for a foreign researcher on a postdoctoral internship” means the fiscal measure provided for in Title VII.3.0.1 of Book IV of Part I of the Taxation Act, under which an individual may deduct an amount in computing his or her taxable income for a taxation year.
2.2. In order for an individual who works for an eligible employer to benefit from the tax holiday for a foreign researcher on a postdoctoral internship for a taxation year, the eligible employer must obtain a certificate in respect of the individual (in this chapter referred to as a “researcher certificate”) from the Minister. The certificate must be obtained for each taxation year for which the individual may claim the tax holiday.
The employer must file the application for the certificate before 1 March of the calendar year that follows the individual’s taxation year concerned.
DIVISION II
RESEARCHER CERTIFICATE
2.3. A researcher certificate issued to an eligible employer certifies that the individual referred to in the certificate is recognized as a researcher on a postdoctoral internship in respect of the employer for the taxation year for which the application for the certificate was made or for the part of the year specified in it.
2.4. An individual may be recognized as a researcher on a postdoctoral internship in respect of an eligible employer if
(1) the individual is specialized in the field of pure or applied science or a related field;
(2) the individual holds, subject to the second paragraph, a doctoral degree in one of the fields referred to in subparagraph 1 or another degree that, in the Minister’s opinion, is equivalent;
(3) the individual is serving a full-time postdoctoral internship as a researcher with the employer for a set term; and
(4) the individual’s duties with the employer are performed exclusively or almost exclusively, on a continuous basis, as a researcher within the scope of the postdoctoral internship.
For the condition of subparagraph 2 of the first paragraph to be met, not more than five years may have elapsed, at the time the individual begins a full-time postdoctoral internship with the eligible employer for the first time, since the individual obtained the diploma referred to in that subparagraph. However, if, before beginning that first internship, the individual temporarily interrupted his or her research activities for reasons the Minister considers reasonable, the time elapsed may be longer, but must not exceed 10 years.
2.5. If an individual is temporarily absent from work for reasons the Minister considers reasonable, the Minister may, for the purpose of determining whether the individual meets the conditions for recognition as a researcher on a postdoctoral internship in respect of an eligible employer, consider that the individual continued to perform his or her duties throughout the period of absence exactly as he or she was performing them immediately before the beginning of that period.
2.6. An eligible employer to which a researcher certificate is issued for a taxation year must promptly send a copy of the certificate to the individual concerned so that it may be attached to his or her fiscal return for the year.
CHAPTER III
SECTORAL PARAMETERS OF DEDUCTION IN RESPECT OF FOREIGN PROFESSORS
DIVISION I
INTERPRETATION AND GENERAL
3.1. In this chapter, unless the context indicates otherwise,
“eligible employer” means a Québec university;
“foreign professor tax holiday” means the fiscal measure provided for in Title VII.3.2 of Book IV of Part I of the Taxation Act, under which an individual may deduct an amount in computing the individual’s taxable income for a taxation year.
3.2. In order for an individual who works for an eligible employer to benefit from the foreign professor tax holiday for a taxation year, the eligible employer must obtain a certificate in respect of the individual (in this chapter referred to as a “professor certificate”) from the Minister. The certificate must be obtained for each taxation year for which the individual may claim the tax holiday.
The employer must file the application for the certificate before 1 March of the calendar year that follows the individual’s taxation year concerned.
DIVISION II
PROFESSOR CERTIFICATE
3.3. A professor certificate issued to an eligible employer certifies that the individual referred to in the certificate is recognized as a professor in respect of the employer for the taxation year for which the application for the certificate was made or for the part of the year specified in it.
3.4. An individual may be recognized as a professor in respect of an eligible employer if
(1) the individual holds a position as a professor with the employer;
(2) the individual is specialized in the field of science and engineering, finance, health or new information and communication technologies;
(3) the individual holds a doctoral degree in one of the fields referred to in paragraph 2 or another degree that, in the Minister’s opinion, is equivalent; and
(4) the individual’s duties with the employer are performed exclusively or almost exclusively, on a continuous basis, as a professor in one of the fields referred to in paragraph 2.
3.5. If an individual is temporarily absent from work for reasons the Minister considers reasonable, the Minister may, for the purpose of determining whether the individual meets the conditions for recognition as a professor in respect of an eligible employer, consider that the individual continued to perform the his or her duties throughout the period of absence exactly as he or she was performing them immediately before the beginning of that period.
3.6. An eligible employer to which a professor certificate is issued for a taxation year must promptly send a copy of the certificate to the individual concerned so that it may be attached to his or her fiscal return for the year.
2012, c. 1, Schedule D.
© Gouvernement du Québec