Medical professionals in Quebec face 53.31% top marginal rates while also having unique incorporation rights and significant income. Strategic planning can save hundreds of thousands over a career.
Professional Medical Corporation (PMC)
Quebec physicians can incorporate through the Collège des médecins. Income retained in the PMC is taxed at ~12.2% rather than 53.31% personal marginal rate — creating massive deferral. The savings compound significantly over a career.
Salary vs. Dividend from Your PMC
RAMQ fees flow through the PMC. Careful planning of withdrawal method is critical: salary creates RRSP room and QPP contributions; dividends avoid QPP but don't build RRSP room. The optimal mix depends on your specific retirement plans.
Immediate Expensing for Medical Equipment
Equipment purchases up to $1.5M/year can be immediately expensed under federal and Quebec immediate expensing rules for CCPCs — 100% deduction in the year of purchase.
Corporate-Owned Life Insurance
Permanent life insurance inside a professional corporation accumulates cash value at a tax-sheltered rate. Proceeds are paid to the corporation tax-free and distributed to beneficiaries via the Capital Dividend Account.
Retirement Planning
Unlike employees with defined benefit pensions, physicians must build their own retirement assets: RRSP, TFSA, corporate investment portfolio, and real estate — with a clear withdrawal strategy to minimize lifetime taxes.