On February 21, 2017 Finance Quebec released the Quebec Information Bulletin 2017-3, which proposes tax relief on stock options granted after February 21, 2017. This will allow companies to offer a more competitive compensation package to Quebec-based employees, as tax relief on stock options are now aligned with other jurisdictions across Canada. Quebec’s stock option deduction will increase from 25% to 50% in the following situations:
- The shares are listed on a recognized stock exchange; that is, an exchange designated by the Minister of Finance or in an Organization for Economic Co-operation and Development member country that has a treaty with Canada.
- When shares are granted to an employee of a corporation whose payroll, at the time of grant, is at least $10 million in Quebec, as determined under the rules for employer Quebec Health Services Fund contributions.
Further details are expected when the bill is tabled, most likely this fall.
If you want to know more about this change, please contact your tax advisor or visit http://www.finances.gouv.qc.ca.
For enquiries about employee equity plans, please contact a member of our sales team or your Relationship Manager.