This temporary tax credit supports the establishment of major digital transformation projects and their maintenance in Québec. It covers digitization contracts entered into between March 17, 2016, and January 1, 2019, with the purpose of implementing projects that will create at least 500 jobs in Québec that must be maintained for a period of seven years.
This tax credit is equal to 24% of the qualified wages paid by a corporation to eligible employees for a maximum two-year period.
The eligible salary refers to employment income generally calculated pursuant to the Québec Taxation Act. It is the salary paid to an eligible employee, up to an annual limit of $83,333.
The digitization activities provided for in the contract must result from activities that were entirely carried out outside Québec by another person for at least 24 months before the contract was entered into
To benefit from this tax credit, a corporation must obtain a certificate from Investissement Québec confirming the existence of an eligible digitization contract before the start of the digitization activities covered under the contract.
Each year, your corporation must also obtain an employee certificate from Investissement Québec in respect of the eligible employees.
Investissement Québec charges fees for processing all eligibility certificate applications. For more information, contact an Investissement Québec advisor or see the rate schedule on our website.
For more information, contact Danielle Giroux, Tax Specialist, Tax Measures Department, Investissement Québec, at 418 646-9765.
If your company is eligible for this tax credit, you may want to apply for financing for refundable tax credits to put your cash to work sooner. For more details, please contact one of our financing experts at:
1 844 474-6367.