Tax holiday for a new business created to commercialize intellectual property
At a glance
- No Condition
- Open Date : November 14, 2019
- All industries
- Gouvernement du Québec
- Ministère de l'Économie et de l'Innovation
Overview
Eligibility criteria
This grant provides a tax credit for new companies dedicated to commercializing intellectual property in Quebec. Eligibility criteria include:
- Company incorporated in Canada after March 19, 2009, and before April 1, 2014.
- Operation of an eligible commercialization business within twelve months of incorporation.
- Majority of revenue from eligible commercialization businesses and relevant asset sales.
- Compliance with specific conditions related to business history and structure.
- Utilization of available deductions to ensure taxable income reaches zero if needed.
- Not being a beneficiary of certain trust structures.
Who is eligible
Eligible types of companies for the grant include:
- Companies incorporated in Canada after March 19, 2009, and before April 1, 2014.
- Companies actively operating eligible commercialization businesses.
- Companies deriving the majority of their income from eligible commercialization activities.
Eligible expenses
Eligible expenses for this grant include expenses related to the commercialization of eligible intellectual property, such as manufacturing and selling goods deriving from intellectual property, licensing computer programs, and developing significant technological advancements.
- Manufacturing and selling goods with intellectual property value
- Licensing computer programs
- Developing significant technological advancements
Evaluation & selection criteria
Here is a short summary of the evaluation and selection criteria for the "Congé d'impôt sur le revenu pour une nouvelle société dédiée à la commercialisation d'une propriété intellectuelle" grant:
- Société admissible ayant été constituée au Canada après le 19 mars 2009 et avant le 1er avril 2014.
- L'entreprise de commercialisation admissible doit respecter les conditions définies par le Ministère.
- Les critères spécifiques d'admissibilité sont détaillés dans la Loi concernant les paramètres sectoriels de certaines mesures fiscales.
How to apply
- Step 1: Submit a request to the Ministry with the necessary documentation to obtain an attestation regarding the eligibility of the commercialization business.
- Step 2: Once the Ministry issues the attestation, the eligible company must include a copy of the attestation along with the prescribed form from Revenu Québec in their annual tax return to benefit from the tax credit.
- Step 3: The eligibility of the company for the tax credit, including the admissibility, is subject to verification and acceptance by Revenu Québec.
- Step 4: Renew the attestation by submitting a request to the Ministry if needed, with the same eligibility criteria applying.
Congé d'impôt sur le revenu pour une nouvelle société dédiée à la commercialisation d'une propriété intellectuelle
Congé d'impôt sur le revenu pour une nouvelle société dédiée à la commercialisation d'une propriété intellectuelle
The Income Tax Holiday for a New Company Dedicated to the Commercialization of Intellectual Property aims to increase the number of companies deriving from research conducted in the Quebec public sphere. The grant encourages innovation, entrepreneurship, and the retention of intellectual property in Quebec, benefiting Quebec universities and public research centers by facilitating access to funding for new companies. It provides tax relief for up to ten years to eligible companies that hold certification from the Ministry regarding an eligible commercialization venture. The certification is valid for a maximum of three years and can be renewed. To apply for the certification, eligible companies must submit a request and relevant documentation to the Ministry. Companies seeking the tax holiday need to include a copy of the certification with the prescribed form from Revenue Quebec in their annual tax returns. The eligibility for this tax holiday is subject to verification and approval by Revenue Quebec. The details of this program are outlined in the law concerning the sectoral parameters of certain tax measures. For inquiries about certification from the Ministry, contact the Department of Technology Transfers – Tax Measures. For other matters related to the tax holiday, reach out to Revenue Quebec.
