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ARTICLE · 26 APRIL 2012

New Tax Measures Relating to Trusts

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In tabling the 2012 Budget, the Québec Minister of Finance Raymond Bachand announced three measures regarding the taxation of trusts.

CanadaTax
Hugo Patenaude
Hugo Patenaude
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In tabling the 2012 Budget, the Québec Minister of Finance Raymond Bachand announced three measures regarding the taxation of trusts.

Tax Rates

The first measure affects all inter vivos trusts. Following the budget measures, inter vivos trusts will no longer enjoy a reduced tax rate on their taxable income for Québec tax purposes. The Québec government has increased to 24% (from 20%) the tax rate applicable to inter vivos trusts. Before the introduction of this measure, the tax rate of an inter vivos trust varied between 20% and 24% depending on the amount of taxable income. With this increase, the Québec government has harmonized its rate with those of other provinces.

Property income derived from the rental of immovable properties located in Québec by a trust that is not a resident of Canada

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