Quebec Business and Tax Compliance: Revenu Quebec, QST, QPP and CO-17

Quebec business and tax compliance runs mostly through one agency, Revenu Quebec, which administers the Quebec sales tax (QST), the GST for Quebec registrants, provincial corporate income tax, source deductions and employer contributions. The Canada Revenue Agency (CRA) still collects federal corporate tax, so a Quebec company files a federal T2 and a provincial CO-17. Some Revenu Quebec pages are available in French only because the Charter of the French language applies to the agency. This page covers registration, sales tax, corporate tax and payroll in 2026 for owners in Montreal, Quebec City, Laval and Gatineau, including U.S. and India-linked owners.

Quebec business and tax compliance: how do you register?

A Quebec corporation is registered with the Registraire des entreprises, and Quebec's government site lists 16 legal forms, with the corporation (societe par actions) the usual choice. Revenu Quebec then registers the business for consumption taxes, source deductions, corporation income tax and its secure access service through the Register a New Business service, through My Account for businesses if you are already registered, or with form LM-1-V. A Quebec-chartered corporation that registers with the enterprise register may also be added to the corporate tax file automatically, subject to conditions.

Employers also contact the CRA to open a payroll program account and may have to register with and pay contributions to the CNESST, Quebec's workplace health and safety board. See our federal incorporation guide for the alternative to a Quebec charter.

How do QST and GST work in Quebec?

You must register for the GST and QST if your worldwide taxable supplies pass $30,000 as described above. As a rule you register for the QST before your first taxable supply other than as a small supplier, and for the GST before the 30th day after your first taxable sale in Canada. Some businesses must register for the QST even as small suppliers, including retail sellers of tobacco, fuel or alcohol, and sellers of new tires or road vehicles. The CRA's table shows the QST at 9.975% alongside the 5% GST.

All GST and QST registrants except charities must file electronically for reporting periods starting on or after January 1, 2024, through My Account for businesses, the express service or a financial institution's online payment service. Returns are due on the date shown in My Account; a weekend or statutory holiday moves the deadline to the next working day. If the GST or QST to remit is $10,000 or more, payment must be electronic, tested separately for each tax. Since July 15, 2026 certain food and hygiene products, such as ice cream, pastries and prepared fruit platters, are zero-rated for QST, except at establishments where substantially all food sales are taxable (which includes most restaurants). Our GST/HST guide covers the federal side.

What corporate tax applies in Quebec?

Quebec corporate tax is separate from federal tax and is reported on the CO-17, due six months after year-end, with electronic filing for most corporations. The general rate is 11.5%. A CCPC can claim Quebec's small business deduction on the first $500,000 of eligible active business income, leaving 3.2%, provided its paid-up capital for the prior year is below $50 million and it passes the paid-hours test. At least 5,500 paid employee hours earns the full rate. The deduction scales down in a straight line between 5,500 and 5,000 hours and falls to nil at 5,000 hours or fewer. Primary and manufacturing companies can qualify through an activity test instead. Combined with the federal 9%, the full small business rate is 12.2%; see the small business deduction guide.

What are the 2026 payroll contributions in Quebec?

Employers must also pay the labour standards contribution on remuneration up to $103,000 and may owe CNESST premiums. Register for source deductions with Revenu Quebec; see our payroll guide for the federal and CRA side. Since fall 2025 businesses registered for My Account for businesses receive most communications online.

Worked example: a Montreal firm

Atelier Mont-Royal Inc. is a Montreal CCPC with 25 employees and a payroll of $900,000. For one employee earning $80,000 in 2026 the employer-side costs are: QPP $4,479.30 plus $216 of second additional QPP on the $5,400 above $74,600; QPIP of $481.60; Quebec EI of $1,253.98; and health services fund contributions of 1.65% of pay, or $1,320. That totals $7,750.88, before CNESST premiums and the labour standards contribution.

On the corporate side, if its active business income is $300,000 and its paid hours are about 5,250, halfway between 5,000 and 5,500, the 8.3% Quebec deduction is roughly halved, so its Quebec rate is about 7.35% or $22,050, not 3.2% or $9,600. Counting hours early in the year avoids that surprise.

Documents to have ready

• Quebec articles or registration number and the enterprise register details.
• Business number and Revenu Quebec identification and file numbers.
• Payroll summaries showing employee counts and paid hours.
• QST and GST sales and purchase records, and ITC and ITR support.
• Financial statements for the CO-17 and federal T2.

Mistakes to avoid

• Filing only the federal T2 and forgetting the CO-17.
• Not tracking paid hours for the small business deduction.
• Charging QST only on part of a bill, or missing the retail categories that need QST registration even under $30,000.
• Paying QST and GST of $10,000 or more by cheque.
• Forgetting the CNESST and labour standards contributions on top of the Revenu Quebec payroll lines.

A note for U.S.- and India-linked owners

A U.S. or Indian group entering Quebec usually faces French-language requirements, a separate provincial corporate return and Revenu Quebec payroll registration, none of which exist elsewhere in the same form. Our U.S. company entering Canada and Indian company entering Canada pages explain structure choices. U.S. sellers can compare Quebec's rules with our U.S. sales tax registration for foreign sellers, and Indian owners will recognize the input-credit design from GST in India. For structures that link Canada with India or the U.S., see the India-Canada business structures guide.

How we can help

We are a U.S. CPA firm in Aurora, Illinois. We handle the U.S. side of a Quebec operation and coordinate with your Quebec accountant or Canadian CPA, who files the CO-17, QST and payroll returns, and with your Indian Chartered Accountant where needed. See our payroll and employer compliance and sales tax and GST compliance services.

Frequently asked questions

General information only. It is not tax, legal, accounting or immigration advice for your situation, and rules change; confirm the current rules with the official source or a licensed professional in the relevant country.