March 20, 2025 | By apatel | Tax planning

The year is coming to a close, and with it comes the opportunity to maximize your tax savings. In Quebec, certain dates and measures—such as RRSP contributions allowed until February, or the new capital gains inclusion rate—can make all the difference. In this article, follow the 6 essential steps to strategically finalize your tax balance sheet and enter 2025 with the best possible cards in hand.

Introduction

As the year approaches, it's a good time to plan your finances. Familiar tasks like RRSPs, capital gains, tax credits, and salary/dividend optimization can make a big difference on your tax bill.

Step 1: Assess your current situation

  • Estimate your personal income (salary, dividends, earnings) and quickly choose between salary and dividend for a Canadian-controlled private corporation (CCPC).
  • Examine your structure (individual vs. corporation) to identify tax levers.

Step 2: Review available tax strategies

Step 3: Adjust the income distribution

  • If you operate a CCPC, adjust the salary/dividend mix to reduce social security contributions or take advantage of the career extension tax credit (if applicable) Québec.ca.

Step 4: Maximize provincial deductions and credits

  • Plan your investments in innovation or eco-responsible acquisitions to benefit from the investment and innovation credit Revenue Quebec+1.
  • Activate other provincial credits based on projects undertaken before December 31.

Step 5: Professional Collaboration

  • Consulting a tax specialist or CPA who is familiar with Quebec rules allows you to validate your choices, anticipate and manage the required forms, particularly for complex credits.

Step 6: Simulate, adjust, then act

  • Use good tax software (like TurboTax Desktop) or an expert to simulate different scenarios before the end of the year.
  • Note key dates (December 31 for expenses, 60 days for RRSPs, etc.) to validate or adjust your decisions in time.

Conclusion

For your tax situation in Quebec, the end of the year is the ideal time to: assess your income, optimize contributions/deductions, adjust your salary/dividend distribution, and consult a professional. This precaution guarantees a more peaceful and tax-efficient year-end.