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PRESS RELEASE
Montréal, November 18, 2024 – With 2025 fast approaching, Raymond Chabot Grant Thornton would like to remind you that it’s not too late to reduce your income taxes through year-end tax planning.
The Year-end Tax Planning Guide 2024 (hereafter the “Guide”) is intended for individuals, companies and their leaders, employees and investors. It includes certain measures that you can take before year-end to maximize credits and reduce your tax bill. For example, these solutions take into account the increase in the capital gains inclusion rate, your salary-dividend mix and declaring a bonus.
A year-end exercise that can pay off!
In light of the increased capital gains inclusion rate as of June 25, 2024, an individual would benefit from allocating the realization of their significant capital gains to maximize their annual taxable earnings deduction limit of $250,000 and reduce their rate, as specified in the Guide. “Furthermore, it could be more beneficial for corporations to realize certain gains in the hands of an individual rather than the company. The gap between a corporation’s total integrated rate and the applicable rate for a capital gain realized by an individual is currently 12.49% and not 2.70%,” indicates Sylvain Gilbert, Tax Partner and Regional Vice President.
The Guide also points out to business leaders the benefits of properly allocating their remuneration. “Accordingly, declaring a bonus is often preferred over paying a salary, since the bonus payment can be deferred until after the company’s year-end and, in some cases, can defer taxation on the individual. Rethinking how you allocate salaries and dividends may prove to be an advantageous option for a shareholder-manager,” adds Vincent Fortier, Senior Tax Manager.
The Guide also reminds us of important measures that can reduce a corporation’s tax bill such as the temporary enhancement of Quebec’s (C3i) tax credit for investment and innovation. Depending on the region, the tax credit rates range from 15% to 25% and apply to expenditures to acquire any eligible property between January 1, 2024, and December 31, 2029. Several other tools are detailed in the Guide, particularly those related to individuals such as estate planning, RRSP contributions and charitable donations.
To learn more about some of these opportunities and how SMEs and their leaders can leverage tax measures before December 31, 2024, media representatives are invited to contact the firm using the information below for an interview with a tax specialist. “Year-end planning can be rewarding,” concludes Mr. Gilbert.
About Raymond Chabot Grant Thornton
Raymond Chabot Grant Thornton is a professional services firm dedicated to the success of organizations and their leaders since 1948. The firm’s advisors are committed to helping clients thrive by obtaining a deep understanding of what is important to them, their business and their industry. This knowledge, combined with a team of motivated and talented professionals, help accelerate growth. A Quebec and Canadian leader in the areas of assurance, tax, advisory services and business recovery and reorganization, Raymond Chabot Grant Thornton boasts more than 2,900 professionals, including approximately 200 partners, in some 100 offices across the province of Quebec and in the Ottawa and Edmundston regions.
Together with Grant Thornton LLP, another Canadian firm, and the Grant Thornton world organization, our global footprint spans across close to 150 countries with 73,000 employees who provide real insight, a fresh perspective and agility to keep clients moving ahead.
Source:
Francis Letendre
Head, Communications and Public Affairs
Raymond Chabot Grant Thornton
Phone: 514-390-4201
Email: [email protected]