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

Holding Companies

Generally, the income taxes currently payable on investment income earned through a corporation resident in Quebec are basically the same, although slightly higher if the income had been earned directly by an individual resident in the province.

Individuals may prefer to earn this income personally, in particular because of the administrative costs associated with a holding company. However, other reasons may justify the use of holding companies. Such reasons include income splitting, estate freezing and limited liability for shareholders.