Quebec says it will align its tax system with the federal government by increasing the percentage of capital gains subject to taxation.
Like Ottawa announced in its budget Tuesday, Quebec says it will tax two-thirds rather than one-half of capital gains, which are profits made on the sale of assets.
The increase in the capital gains inclusion rate will affect gains superior to $250,000, as is the case with the federal government’s changes.
The Quebec Finance Department says the tax increase will take effect June 25.
The province says it took the decision to maintain “coherence” with the federal government’s tax system.
A major Quebec manufacturing association — Manufacturiers et Exportateurs du Québec — says the increase in the capital gains inclusion rate will hurt companies at a time when they already have to invest in reducing carbon emissions.
The province also will amend its tax legislation to incorporate the increase in the lifetime capital gains exemption, the introduction of the Canadian Entrepreneurs’ Incentive and the increase in the withdrawal limit for the Home Buyers’ Plan, along with its new temporary repayment relief.