Small Business Deduction rate from 7.5% to 8.3% (Quebec)

Program(s) affected: T2 Document created: 04 14, 2020 Tax year(s): 2021 Document last modified: Version(s): 24.15 Problem status: Fixed in v24.30

In the March 25, 2021, Quebec budget, the small business deduction (SBD) rate was increased from 7.5% to 8.3% for days in the tax year after March 25, 2021. Are these changes already incorporated in DT Max?

To further ease the tax burden on SMBs, the current 7.5% SBD rate will be raised so that the maximum rate available to a corporation for the period that begins after March 25, 2021, is 8.3%.

As a workaround, to correct the small business deduction of a corporation that is not eligible for the additional deduction for small and medium businesses in the primary and manufacturing sectors right-click on line 105 of the CO-771, select "Override this field" and enter the correct amount.