Taxation and duties;
Quebec Tax Glossary: 20 Accounting Terms Explained Simply
23/7/2026
In short. Twenty terms are constantly recurring in the tax life of a Quebec business: T2 and CO-17 (the two corporate tax returns), retained earnings, capital cost allowance (CCA), provisional tax payments (prepaid tax), deferred tax returns (DAS), the 9.975% VAT rate, input tax credits (ITC) and input tax credits (RTI), small business deductions (SBD), and a dozen others. This glossary defines each term in 40 to 60 words, in clear French, and links each concept to the free calculator or the Bankeo guide that puts it into practice. All amounts are in Canadian dollars.
In Quebec, entrepreneurs juggle two tax administrations: the CRA at the federal level and Revenu Québec at the provincial level, and therefore a double vocabulary: T2 and CO-17, T4 and Relevé 1, CTI and RTI. The acronyms quickly accumulate, and conversations with your accountant can feel like speaking a foreign language. This glossary compiles 20 tax and accounting terms that every Quebec SME owner or self-employed individual encounters sooner or later. Each entry contains 40 to 60 words and links to the free calculator or guide that puts the concept into practice. For recent changes affecting these terms, also consult our 2026 tax updates for Quebec SMEs .
Before the definitions, here are the rates, thresholds, and 2026 maturities to which these 20 terms relate. These are the figures to keep handy.
| Term | | Key figure (2026) | Administration | |
|---|---|---|
| GST | 5 % | Revenu Québec (which administers it in Quebec); |
| QST | 9,975 % | Revenu Québec |
| Small supplier | $30,000 in taxable sales over 4 quarters | CRA and Revenu Québec; |
| Energy Performance Certificate (EPC) | 9% at the federal level on the first tranche of 500,000? | BOW |
| Provisional payments (individuals); | net tax of more than €3,000 (federal) or €1,800 (Quebec) | CRA and Revenu Québec; |
| T2 and CO-17 | to be produced within 6 months of the end of the financial year; | CRA and Revenu Québec; |
| T4 and Statement 1 | to be postponed to the last day of February; | CRA and Revenu Québec; |
| FSS | 1.25% to 4.26% of the payroll; | Revenu Québec |
Five terms structure the tax of a company incorporated in Quebec, from the annual declaration to the management of accumulated profits.
The second quarter is the federal income tax return that every corporation must file with the IRS each year, even if it has no tax payable, within six months of the end of its fiscal year. Estimate your corporation's combined tax liability with the corporate tax calculator .
The CO-17 is the Quebec equivalent of the T2: the income tax return that every corporation taxable in Quebec files with Revenu Québec. A corporation operating in Quebec therefore files two separate returns each year, by the same deadlines. The corporate tax calculator combines both levels of taxation.
The small business deduction lowers the federal tax rate to 9% on the first $500,000 of eligible income for a Canadian-controlled private corporation. In Quebec, the reduced rate requires, among other things, 5,500 paid hours. Check your actual rate with the corporate tax calculator .
Retained earnings are the profits a company keeps after taxes and dividends, accumulated since its inception. They appear as shareholder equity on the balance sheet and finance future growth or dividends. To decide whether to withdraw or reinvest them, read our guide on salary versus dividends .
Capital cost allowance (CCA) is the tax equivalent of depreciation: each asset (equipment, vehicle, building) falls into a category for which the CRA sets the maximum deductible rate each year. It replaces accounting depreciation on your tax returns. Identify your eligible expenses with the deductible expense calculator .
Sales taxes have their own lexicon, and in Quebec they all go through a single window: Revenu Québec.
The Goods and Services Tax (GST) is the federal sales tax of 5% on most goods and services. A unique feature of Quebec is that it is administered by the tax authorities, not the CRA. Calculate the amount with or without tax using the GST/QST calculator .
Quebec sales tax is applied at 9.975% to the selling price, on the same base as VAT, never a tax on tax. Combined, VAT represents approximately 14.975% of the invoice. The VAT calculator performs the calculation in both directions.
The input tax credit allows a registered business to recover the VAT paid on its commercial purchases: rent, equipment, software, and professional fees. You only remit the net tax collected. Our VAT business guide details the required supporting documents.
The input tax refund (ITF) is the French equivalent of the input tax credit (ITC): it recovers the VAT paid on your business expenses. ITF and ITF are claimed together on the same tax return filed with Revenu Québec. Exceptions and restrictions are detailed in the GST/QST guide .
A company whose taxable sales remain below €30,000 for four consecutive calendar quarters has the following status: VAT registration is initially optional, then becomes mandatory once the threshold is exceeded. Our article on the $30,000 threshold explains when and how to register.
In Quebec, Revenu Québec administers both the GST and the QST: you file a single tax return for both, and they also process your input tax credits (ITCs) and input tax refunds (ITRs). You have a single point of contact for sales taxes, but still two (CRA and Revenu Québec) for income tax.
From the first time you hire someone, or as soon as you pay yourself an income as a manager, these five terms become part of your daily life.
Source deductions are the amounts withheld from each paycheck (federal and provincial income tax, QPP, QPIP, employment insurance) that the employer remits to the CRA and the Canada Revenue Agency according to a strict schedule. Calculate the total cost of hiring with the employer cost calculator .
The Quebec Pension Plan is the public retirement plan for Quebec workers, replacing the CPP for the rest of the Canada Employer and employee each contribute up to the limit of eligible earnings; the self-employed worker assumes both shares. Their contribution is shown in the employer cost calculator .
The Quebec Parental Insurance Plan (QPIP) funds maternity, paternity, parental, and adoption benefits. Unique to Quebec, it is in addition to other deductions: both the employee and employer contribute their respective rates based on the insurable salary. This is one more line item that the employer cost calculator automatically includes.
The Health Services Fund is a Quebec employer contribution calculated on the total payroll, at a rate of approximately 1.25% to 4.26% depending on the size and sector of the company. This is the most frequently overlooked employer cost; the employer cost calculator automatically includes it.
A designated dividend, derived from income taxed at the company's standard rate, entitles the shareholder to a higher tax credit; an undetermined dividend, derived from income taxed at the SME rate, is less advantageous. Compare the compensation scenarios using the salary vs. dividend calculator .
The last five terms frame the schedule and the paperwork: who declares what, when and in what form.
Advance tax payments are made throughout the year rather than in a single lump sum in the spring. Individuals typically pay this when their net tax liability exceeds $3,000 federally or $1,800 in Quebec; corporations pay in monthly or quarterly installments. Estimate your tax bill with the personal tax calculator .
The T4 slip (federal, for the CRA) and the Relevé 1 slip (provincial, for Revenu Québec) are given to each employee after the end of the year and summarize wages paid and deductions made. They must be submitted no later than the last day of February. The complete schedule is available in our year-end payslip guide .
The fiscal year is a period of up to 53 weeks over which a company calculates its profits and taxes. The fiscal year-end date, chosen at incorporation, triggers all deadlines: T2 and CO-17 within six months, and the tax balance before that. Find all the dates in our guide to annual obligations .
Formerly known as a Notice to Reader, this is the most common form of financial statement prepared by a CPA for a small or medium-sized enterprise (SME), governed by NCSC 4200 since 2021. It offers no audit assurance but is often sufficient for lenders. Learn how to read these statements with our guide , Understanding Your Financial Statements .
The Quebec business number is the ten-digit identifier assigned by the Registrar of Enterprises upon registration. It follows you throughout all your provincial business transactions and is distinct from the federal business number (BN) issued by the CRA. Our Registrar's registration guide explains how to obtain it.
Combien coûte un comptable pour piloter tout ce vocabulaire à votre place? La médiane se situe autour de 3 000 $ par année, la plupart des mandats allant de 500 $ à 6 000 $ selon le secteur, basé sur les honoraires réels de 1 248 mandats conclus via Bankeo (2024-2026), sur plus de 15 000 demandes reçues. Le Baromètre Bankeo ventile ces honoraires par service, et vous pouvez parcourir les comptables vérifiés du réseau pour comparer les profils.
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Find my accountantThe T2 is the federal corporate income tax return, filed with the IRS; the CO-17 is its provincial equivalent, filed with Revenu Québec. A company operating in Quebec must file both annually, within six months of the end of its fiscal year, even if it has no tax payable.
NRB stands for retained earnings: the profits a company has accumulated since its inception, less taxes paid and dividends distributed. It is a key line item on the balance sheet, as it indicates the company's ability to reinvest, weather a downturn, or pay dividends to shareholders.
A self-employed individual must generally make instalment payments when their net tax payable exceeds $3,000 federally or $1,800 in Quebec, for the current year and one of the two preceding years. Corporations, on the other hand, pay in monthly or quarterly installments as soon as their annual tax exceeds $3,000.
Accounting depreciation allocates the cost of an asset according to the company's policy in its financial statements. Capital cost allowance (CCA) is its tax equivalent: maximum rates set by the CRA for each asset category. The two amounts almost always differ, which explains part of the difference between accounting profit and taxable income.
The CTI recovers the VAT paid on your business purchases; the RTI recovers the VAT on the same purchases. Both are claimed on the same tax return, submitted to Revenu Québec, which administers both taxes in Quebec. Therefore, you only remit the difference between the taxes collected and the taxes paid.
Selon le Baromètre Bankeo, la médiane se situe autour de 3 000 $ par année, la plupart des mandats allant de 500 $ à 6 000 $ selon le secteur et l'étendue des services. Ces chiffres sont basés sur les honoraires réels de 1 248 mandats conclus via Bankeo (2024-2026), sur plus de 15 000 demandes reçues.
General information provided for guidance purposes only, reflecting the current 2026 tax regulations. It does not replace the advice of an accountant or chartered accountant: always consult a professional for your specific situation.
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