Tax Holiday for Foreign Experts

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

This incentive is geared to foreign experts who work for companies involved in scientific research and experimental development (SR-ED). It seeks to facilitate the recruitment of foreign experts outside Quebec or Canada who have the competencies required to, among other things, coordinate and carry out SR-ED results promotion activities.

Eligibility Criteria

Eligible employers

• Canadian companies that conduct SR-ED in Quebec.

Eligible Activities

Eligible experts who :

• have signed an employment contract after March 9, 1999 with an eligible employer and began working after this date.
• did not reside in Canada immediately before signing the contract or starting their job.
• are hired to promote SR-ED results in Quebec on behalf of their employer.
• have a functions are exercised exclusively or almost exclusively as part of the company’s SR-ED results promotion program.
• have extensive experience in results promotion.
• are experts in one of the following fields: Management of innovation arising from a research project, Commercialization and marketing, Financing, particularly on an international scale,  Strategic alliances, or any other activity associated with promoting SR-ED results.
• hold a university degree in an appropriate field.

Ineligible activities

• Activities exercised directly or indirectly at a university or public research centre eligible within the meaning of the Taxation Act.

Summary

The tax holiday applies to salaries paid to foreign experts conducting SR-ED results commercialization activities. The tax 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, 50%; the fifth, 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/ministere/nav/programs.html?&iddoc;=64863

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