Tax Holiday for Foreign Researchers

This document was prepared with the information on the ministère du Développement économique, de l'Innovation et de l'Exportation's Web site.

This aimed at foreign researchers who work for companies involved in scientific research and experimental development (SR-ED). It seeks to facilitate the recruitment of foreign researchers outside Quebec or Canada whose competencies meet the needs of this companies.

Eligibility Criteria

Eligible employers

• Canadian companies conducting SR-ED in Quebec.

 Ineligible activities

• Activities carried out directly or indirectly for a university or public research centre eligible within the meaning of the Taxation Act.

Eligible researchers who:

• have signed an employment contract after April 30, 1987 with an eligible employer and began working after this date.
• did not reside in Canada immediately prior to signing the contract or starting their job.
• were hired to conduct SR-ED activities in Quebec for their employer.
• have a duties consist exclusively or almost exclusively of conducting SR-ED as an employee.
• specialize in pure and applied sciences or in a related discipline.
• hold a graduate degree recognized by a Quebec university or have equivalent knowledge.
• have skills allowing them to conduct SR-ED activities for their employer.

Eligible Activities

Salaries paid to foreign researchers conducting SR-ED.

Summary

The tax holiday applies to salaries paid to foreign researchers conducting SR-ED activities. This holiday can apply to only one period of up to 60 consecutive months (5 years). In the first two years, the holiday applies to 100% of the researchers’ taxable income; the third, 75%; the fourth, to 50%; the fifth, to 25%.

Note: The term salary here has the same meaning as in the context of refundable tax credits.

For more information, consult the Web site http://www.mdeie.gouv.qc.ca/page/web/portail/en/scienceTechnologie/nav/programs.html?&iddoc;=64858

Quebec Contact(s):
Direction du développement de la recherche
Ministère du Développement économique, de l'Innovation et de l'Exportation
4th Floor
South Tower
380 Saint-Antoine West
Montréal, Quebec  H2Y 3X7
Telephone: 514 873-8330, 418 643-8757
Toll-free (information): 1-877-511-5889