This document has been updated on October 24th, 2017 and reflects the state of the Law, including draft amendments, at that date.


Income

Business or Professional Income

An individual who carries on a business must include the proceeds from all sales, including commissions and professional fees, for which the individual is paid (or is to be paid) in cash or equivalent, or in the form of a barter.

Other Income

Business income includes amounts and benefits received during the year, such as:

  • The value of trips awarded as a bonus or gifts received for work performed by the business;
  • Grants and subsidies received from an organization or government;
  • The collection of a debt that had been written off as a doubtful account in a previous year;
  • Incidental investment income.

Professionals’ Work-in-Process

Certain professionals (accountants, dentists, lawyers, notaries, physicians, chiropractors and veterinarians) may elect to exclude work-in-process from income at the end of a year but still deduct in the year all the costs relating to the work. The election is binding for all subsequent years, unless the tax authorities allow to revoke it. This election is abolished for a taxation year beginning after March 21, 2017. A transitional meausre applies for the first taxation year beginning after that date.