Significant Proposals To Duties On Transfers Of Immovables

In its 2016-2017 budget (Budget) unveiled on March 17, 2016, Quebec's Minister of Finance (Minister) announced a series of measures that will significantly amend the system of duties applicable to transfers of immovables located in the province of Quebec. While the legislation underlying the amendments was not included in the Budget documents, the proposals will apply to transfers of immovables made after March 17, 2016.

BACKGROUND

The Act Respecting Duties on Transfers of Immovables (Quebec) stipulates that all municipalities must collect duties on the transfer of immovables within their territory. Except where certain exemptions provided for in the law apply, the transferee or transferees of the immovable must pay a transfer duty. The amount of the transfer duty is established according to the basis of imposition of the transfer duty, as defined in the law.