An August 12 announcement. Quebec's Ministry of Finance has announced the harmonization of the Quebec tax system with certain federal measures introduced by Bill C-31, along with measures made public in a federal government release of July 23, as set out in the Ministry of Finance's full release. This Quebec news page is available in French only.
The Red Seal Success Bonus. The change that will affect the most individuals concerns the Red Seal Success Bonus: this bonus will now be included in the recipient's income in the year it is received, and will be subject to source withholding of Quebec income tax at the time of payment, as stated in the Ministry of Finance release. In practice: if you receive this federal bonus, a Quebec tax amount will be withheld directly from the payment, and the amount will be added to your taxable income for the year.
What is the Red Seal Bonus? The Red Seal is a federal certification for skilled trades (electrician, welder, cook, etc.). The Red Seal Success Bonus rewards people who obtain this certification. The federal government proposed this tax treatment on July 23 to encourage people to earn the certification, and Quebec is now aligning with it.
On the QST side. The release also announces the harmonization of the QST system with federal measures on GST/HST tax debt avoidance, financial services related to certain insurance policies, and certain agriculture-related goods. These measures mostly affect businesses and financial institutions.
Good to know for newcomers: if you work in a skilled trade in Quebec and receive the Red Seal Success Bonus, expect a Quebec tax withholding on the payment, and plan to report the amount on your next income tax return. The detailed rules are set out in Information Bulletin 2026-6 from the Ministry of Finance.
