General information – Tax on capital

Every corporation having an establishment in Québec at any time during a taxation year must pay tax on paid-up capital. The paid-up capital is calculated in the Déclaration de revenus des sociétés (CO-17-T) and is based on financial statements drawn up in accordance with generally accepted accounting principles.

The paid-up capital includes such elements as

• paid-up capital stock;
• surpluses;
• provisions and reserves;
• debts secured by corporation property;
• loans and advances granted to the corporation;
• other debts outstanding for more than six months.

For more information, refer to the Guide to Filing the Corporation Income Tax Return (CO-17.G-V).