Tax credit for tip reporting – Businesses

• The applicant must be a company acting as an employer in the hotel or restaurant sector.
• The company must employ individuals who receive tips directly or indirectly in the course of their functions.
• The company must be required to pay payroll taxes on the tips received or allocated to these employees.
• If the company is a member of a partnership, it may claim the tax credit for its share of eligible expenses incurred by the partnership.

Who is eligible?

• Companies operating in the hospitality sector
• Companies operating in the restaurant sector

Eligible expenses

• Employer payroll taxes (social charges) paid on tips received or allocated to eligible employees.

Eligible geographic areas

• Quebec

• Step 1: Enter Tax Credit Information in Income Tax ReturnEnter the tax credit name, its code (19), and the eligible amount on one of the designated lines (lines 440p to 440y) of the corporate income tax return.
• Step 2: Gather Required DocumentationComplete the prescribed form "Crédit d'impôt relatif à la déclaration des pourboires" (CO-1029.8.33.13).
• Attach the completed form to the corporate income tax return.
• Prepare and retain a payroll register as proof.
• Prepare and retain proof that the income calculation includes the tax credit amount for previous years, if applicable. These supporting documents must be available upon request but are not submitted initially.
• Step 3: Submit DocumentsAttach the prescribed form to the corporate income tax return when filing.
• If you cannot attach the form at the time of filing, send it within twelve months following the filing deadline for that fiscal year.
• Submit documents electronically using authorized tax software, or mail them to Revenu Québec.
• For mailed submissions, indicate the company’s name, identification number, file number, and fiscal year-end date on each document.
• It is recommended to send all documents together in one dispatch for faster processing.

• The prescribed form (CO-1029.8.33.13) must be prepared even if it is not attached to the initial tax return; it can be sent within the specified deadline if not included with the original filing.
• Supporting documents such as payroll registers and calculation proof must be kept on file and provided to authorities upon request, though not submitted unless asked for.
• Faster processing may be achieved if all required documents are submitted together in one package.
• Information about this tax credit is available in the Guide de la déclaration de revenus des sociétés (CO-17.G).