SAVINGS | Notice of withholding tax reduction on registered products - Quebec only

Hello,

Please be advised that following the last budget tabled by the Government of Quebec, a reduction in withholding tax on single payments from certain registered products was announced for mid-year. We have begun to apply this rate reduction in our tools and systems for our Quebec customers effective July 1, 2023.

New rates effective July 1, 2023

For single payments made after June 30, 2023, the withholding tax on registered products will now be reduced by 1 percentage point.

The chart below shows the rate changes by product:

Please note that federal tax deductions have not changed.

Withdrawals made before June 30, 2023

Beginning in the 2023 tax year, the rates applicable to the first two brackets of taxable income in Quebec will be reduced from:

• 15% to 14% for taxable income up to $49,275.
• 20% to 19% for the portion of taxable income exceeding $49,275, but not exceeding $98,540.

Withdrawals from financial products between January 1 and June 30 of this year will be considered taxable income. Any reduction in the client's overall tax rate based on the above criteria will not be applied until the 2023 tax return is filed.

Tax Reference Sheet 2023

The Tax Reference Sheet 2023 document has been updated.

For more information, visit the Revenu Québec site.

We wish you a great summer!