E-COMMERCE
TAX CREDIT
For Quebec businesses', the Quebec provincial
government is offering the following tax incentives to encourage
you to have a transactional web site. Read the following articles,
provided directly from the government, and then ask yourself:
"Why shouldn't my business benefit from these savings?"
2.3. Refundable tax credit
to encourage Quebec SMEs to adopt e-commerce solutions
To encourage Quebec Small / Medium Enterprises
(SMEs) to adopt e-commerce solutions, an eligible corporation
may claim a refundable tax credit equal to 40% of the eligible
expenditures incurred in the course of implementing such solutions.
The amount of this tax credit, for an eligible corporation, may
not exceed $40,000.
2.3.1. Eligible corporation
In general, any corporation, other than an excluded
corporation, which during a taxation year carries on a business
in Quebec and has an establishment there may, under certain conditions,
claim the tax credit for such year if it satisfies either of
the following conditions:
- the amount of its assets shown
in its financial statements submitted to shareholders for its
preceding taxation year or, if the corporation is in its first
fiscal year, at the beginning of its first fiscal year, is less
than $12 million, including the assets of corporations with which
it is associated during the year;
- or if the corporation is not
in its first fiscal year, its gross income for its preceding
taxation year is less than $25 million, including the gross income
of corporations with which it is associated during the year.
2.3.2. Eligible e-commerce
solution
The expression "eligible e-commerce solution"
of an eligible corporation, regarding a business it carries on
in Quebec, means either:
- a transactional Web site using
the public network (Internet),
- or a limited-access secure
and confidential public network (extranet), concerning such business;
- or a business-to-business
transactions system as part of a private network, in relation
to such business.
An e-commerce solution must satisfy all the conditions
for qualifying as an eligible e-commerce solution no later
than March 31, 2003.
2.3.3. Eligible expenditure
"Eligible expenditure" of an eligible
corporation means all the expenditures, incurred by such corporation,
attributable to salaries and the cost of acquiring application
software for inclusion in the eligible e-commerce solution, as
part of the stages of implementation of the eligible e-commerce
solution.
In addition, the expenditures relative to the
execution of the work relating to the implementation of an e-commerce
solution must be attributable to services provided in Quebec
by a taxpayer with an establishment there.
2.3.4. Period of eligibility
of expenditures
The expenditures relating to the implementation
of an eligible e-commerce solution must be incurred by a corporation,
or by a partnership as the case may be:
- after the day of the Budget
Speech and before April 1, 2002;
- or after March 31, 2002 and
before October 1, 2002 (if incurred pursuant to a written obligation
before April 1, 2002 or if the implementation started before
April 1, 2002).
If your company meets the above criteria (speak
with your accountant), contact us and save even more money! Click here to fill out our on-line information
form to learn more about how Kleo can put your store on the Internet.
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