Changes To The e-Business Tax Credit

The Québec Government recently announced changes to the refundable tax credit for the development of e-business. The tax credit, which has a rate of 30 per cent, is granted to an eligible corporation regarding the salaries paid to eligible employees for carrying out eligible activities. Introduced last year, the tax credit itself does not change. Rather, the government has broadened one eligibility criterion to allow certain corporations operating in the information technology sector to qualify for the credit.

To qualify as an eligible corporation, at least 75 per cent of the corporation's activities for the taxation year must be in the information technology sector. The corporation's gross income is the criterion taken into consideration to make such a determination. In addition, at least 75 per cent of the corporation's activities carried out in the information technology sector must consist either of: services ultimately supplied to a person with whom it is at