Tax Holiday for Foreign Experts
Highlights
This program is a fantastic opportunity for your business to bring in top foreign experts for your innovation projects. By hiring these experts, you can benefit from a tax holiday on their salaries. This means you won't pay provincial income tax on their earnings for up to five years. The tax exemption starts at 100% for the first two years, gradually decreasing to 25% by the fifth year.
Imagine the possibilities: implementing an advanced AI system, developing a marketing strategy for a new green tech product, or enhancing cybersecurity solutions—all with the help of highly qualified experts. This program supports various activities, including managing innovation, commercializing new products, transferring advanced technologies, and financing R&D activities.
The tax holiday can significantly reduce your costs, allowing you to invest more in your projects and grow your business. It's a great way to attract top talent and drive innovation, all while enjoying substantial tax savings. Plus, the application process is straightforward, making it easier for you to qualify and start reaping the benefits.
Financing Details
Tax Holiday: This program offers a progressive tax exemption for foreign experts. The tax holiday starts at 100% of the taxable income for the first 24 months, then reduces to 75% for months 25 to 36, 50% for months 37 to 48, and finally 25% for months 49 to 60.
Eligible Expenses: The tax holiday applies specifically to the salaries of foreign experts engaged in certain activities within Quebec-based companies. These activities include managing innovation from R&D projects, commercializing and marketing R&D results, transferring advanced technologies, and financing R&D activities.
Restrictions on Use of Funds: The funds from this tax holiday are strictly tied to the salary of the eligible foreign expert. They cannot be used for other operational costs or expenses outside the specified eligible activities.
Fees: There are no additional fees directly associated with the application or maintenance of this tax holiday.
Qualifications
- Companies must be located in Quebec.
- Companies must be engaged in research and experimental development (R&D).
- Companies must have signed an employment contract with a foreign expert.
- The foreign expert must hold a recognized university degree in a relevant field such as pure and applied sciences, management, finance, or marketing, or have equivalent knowledge.
- The foreign expert should not reside in Quebec or Canada immediately before starting employment.
- The foreign expert must perform functions related to the valorization of R&D results predominantly and continuously within the Quebec company.
- Eligible functions include:
- Managing innovation resulting from R&D projects.
- Marketing and commercializing the results of R&D projects.
- Transferring advanced technologies resulting from R&D projects.
- Financing R&D activities.
Description
This program offers a fantastic opportunity for your business to bring in top foreign experts for your innovation projects. By hiring these experts, you can benefit from a tax holiday on their salaries. This means you won't pay provincial income tax on their earnings for up to five years. The tax exemption starts at 100% for the first two years, gradually decreasing to 25% by the fifth year.
You can use this program to support various activities. Whether you need help managing innovation, commercializing new products, transferring advanced technologies, or financing R&D activities, this program has you covered. Imagine implementing an advanced AI system, developing a marketing strategy for a new green tech product, or enhancing cybersecurity solutions—all with the help of highly qualified experts.
This tax holiday can significantly reduce your costs, allowing you to invest more in your projects and grow your business. It's a great way to attract top talent and drive innovation, all while enjoying substantial tax savings.
Program Steps
Prepare the necessary documentation. You will need the following documents to complete your application:
- Employment contract with the foreign expert.
- Proof of the foreign expert's recognized university degree.
- A detailed project description outlining how the expert will contribute to R&D activities.
- Any relevant financial documents that support your application.
Complete the application form. Fill out the required application form provided by the Ministry of Economy, Innovation, and Energy in Quebec.
Submit your application. Send your completed application form along with the necessary documentation to the appropriate department at the Ministry.
Consult with a Ministry advisor. If you have any questions or need clarification, reach out to a Ministry advisor for guidance on your application.
Await confirmation. After submission, wait for confirmation of your application status. The Ministry will notify you if any additional information is needed.
Start implementing your project. Once approved, you can begin hiring the foreign expert and implementing your innovation project while enjoying the tax holiday benefits.
