2009 Québec Budget Impact Paper

The 2009 Québec budget that was presented by the Honourable Monique Jérôme-Forget, Minister of Finance for the government of Québec on March 19, 2009, was reviewed and contained no new income tax measures affecting federal public service pay or pension payments for 2009. However, there are some personal tax measures that employees may find informative from a personal perspective that were announced for 2011.

ITEMS OF INTEREST

Refundable tax credit for child care expenses

The limit on refundable child care expenses paid for a child under 7 years of age will be raised from $7,000 to $9,000. In addition, child care expenses will now include expenses incurred for child care services throughout the period during which an individual receives benefits under the Québec Parental Insurance Plan or the Employment Insurance plan. These measures will apply as of the 2009 taxation year.

Impact: This tax credit will be incorporated into the 2009 income tax return.

Quebec Sales tax

The budget announced that Quebec Sales tax (QST) will increase from the current 7.5% to 8.5% effective January 1, 2011.


To review the 2009 Québec Budget documents, please visit the following Web site:

http://www.budget.finances.gouv.qc.ca/Budget/2009-2010/index_en.asp