This Tax Bulletin was initially published on December 22nd, 2017, on Fasken.com, under the title “Introduction of Exemptions From the Payment of Transfer Duties on the Transfer of an Immovable Involving a Partnership“.
On December 20, 2017, the Minister of Finance published an Information Bulletin (2017-14, dated December 20, 2017) indicating that amendments would be made to the Act respecting duties on transfers of immovables (the “Act”) to provide an exemption from duties (“Duties”) for transfers involving partnerships made after December 20th, 2017.
Duties are imposed on the transfers of immovables in Québec, unless an exemption applies.
The Act provides exemptions from the payment of Duties in certain cases, such as, for example, where the transfer of an immovable involves a transferor or a transferee that is a legal person.
However, currently no exemption from the payment of Duties applies if a transfer is made to or from a partnership.
Québec has decided to provide an exemption from the payment of Duties on the transfer of an immovable involving a partnership, in circumstances similar to those for legal persons (i.e. for transfers between closely related legal persons).
The proposed amendment will provide for an exemption from the payment of Duties on the transfer of an immovable involving a partnership, where the percentage of a partner, that is the transferor or the transferee of the transfer, of the income or losses of the partnership is at least 90%. This, presumably, includes transfers by or to corporations and partnerships.
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