#1ISSN 2368-8874 Finances Québec INFORMATION BULLETIN November 7, 2023 2023-6 FISCAL MEASURES ANNOUNCED AS PART OF THE PRESENTATION OF THE UPDATE ON QUÉBEC'S ECONOMIC AND FINANCIAL SITUATION This information bulletin makes public the fiscal measures announced by the Minister of Finance in the fall 2023 Update on Québec's Economic and Financial Situation. To obtain information on the matters dealt with in this information bulletin, contact the Secteur du droit fiscal, de l'optimisation des revenus et des politiques locales et autochtones at [email protected]. The English and French versions of this bulletin are available on the Ministère des Finances website at www.finances.gouv.qc.ca.#2INFORMATION BULLETIN November 7, 2023 FISCAL MEASURES ANNOUNCED AS PART OF THE PRESENTATION OF THE UPDATE ON QUÉBEC'S ECONOMIC AND FINANCIAL SITUATION 2023-6 1. 2. 3. AMENDMENTS TO THE TAX CREDIT RELATING TO INVESTMENT AND INNOVATION.............. 1.1 Amendments relating to the extension of the tax credit..... 1.2 Amendments relating to the enhancement of certain parameters of the tax credit..... 1.3 Amendments to ease certain conditions for claiming the tax credit. ABOLITION OF THE ADDITIONAL CAPITAL COST ALLOWANCE OF 30% ADJUSTMENT OF THE EXEMPTIONS ALLOWED FOR THE PURPOSE OF CALCULATING THE PREMIUM PAYABLE UNDER THE PUBLIC PRESCRIPTION DRUG INSURANCE PLAN 3 5 6 .............. 9 11 12 2#3INFORMATION BULLETIN November 7, 2023 AMENDMENTS TO THE TAX CREDIT RELATING TO INVESTMENT 1. AND INNOVATION 2023-6 On March 10, 2020,1 the tax credit relating to investment and innovation was introduced to encourage productivity gains of businesses in all regions of Québec, while further promoting investments in regions where the economic vitality index is lower. Briefly, the tax credit relating to investment and innovation is currently granted to a qualified corporation² that acquires, after March 10, 2020, and before January 1, 2025, manufacturing or processing equipment, general-purpose electronic data processing equipment or qualified management software packages. It is calculated on the portion of specified expenses incurred to acquire a specified property in excess of $5000 or $12 500, depending on the nature of the property.3 The specified expenses in respect of which a qualified corporation may claim the tax credit may not, however, exceed a cumulative limit of $100 million calculated over a five-year period. The tax credit relating to investment and innovation to which a qualified corporation is entitled, for a taxation year, may be refundable, in whole or in part, or non-refundable. The refundable portion of the tax credit is determined based on the qualified corporation's assets and gross income. The rate of the tax credit available to a qualified corporation in respect of a specified property is established based on the territory where the property is acquired to be used mainly, namely a territory with low economic vitality, 4 a territory with intermediate economic vitality5 or a territory with high economic vitality.6 1 2 3 4 5 6 MINISTÈRE DES FINANCES DU QUÉBEC, Budget 2020-2021 - Additional Information, March 10, 2020, pp. A.3-A.18. A qualified corporation that is a member of a qualified partnership may, under certain conditions, claim the tax credit relating to investment and innovation on its share of specified expenses incurred by the qualified partnership. The $5 000 exclusion threshold applies in respect of a specified property that is general-purpose electronic data processing equipment or a qualified management software package. The $12 500 exclusion threshold applies to other specified property. Prior to the changes announced in this information bulletin, the expression "territory with low economic vitality" refers to one of the following regional county municipalities (RCMs): Antoine-Labelle, Argenteuil, Avignon, Bonaventure, Charlevoix-Est, La Haute-Côte-Nord, La Haute-Gaspésie, La Matanie, La Matapédia, La Mitis, La Vallée-de-la-Gatineau, Le Domaine du Roy, Le Golfe-du-Saint-Laurent, Le Rocher-Percé, Les Appalaches, Les Basques, Les Etchemins, Les Sources, Maria-Chapdelaine, Maskinongé, Matawinie, Mékinac, Papineau, Pontiac, Témiscamingue et Témiscouata, as well as the urban agglomeration of La Tuque and the city of Shawinigan. (See MINISTÈRE DES FINANCES DU QUÉBEC, Information Bulletin 2023-4, June 27, 2023, pp. 13-15). The expression "territory with intermediate economic vitality" refers to a territory in Québec that is neither a territory with high economic vitality nor a territory with low economic vitality. The expression "territory with high economic vitality" refers to a municipality listed in Schedule I to the Act respecting the Communauté métropolitaine de Montréal (CQLR, chapter C-37.01) or in Schedule A to the Act respecting the Communauté métropolitaine de Québec (CQLR, chapter C-37.02). 3#4INFORMATION BULLETIN November 7, 2023 2023-6 Those rates are subject to a temporary increase until December 31, 2023, to a maximum of 40%.7 The table below shows the current rates of the tax credit relating to investment and innovation, based on the date on which the specified property is acquired and the specified expenses are incurred, and on the territory where the specified property is acquired to be used mainly. TABLE 1 Rates of the tax credit relating to investment and innovation (per cent) Territory where the property is acquired to be used mainly Rates applicable after March 10, 2020, and before March 26, 2021 Rates applicable after March 25, 2021, and before January 1, 2024 Rates applicable after December 31, 2023, and before January 1, 2025 Territory with low economic vitality 20 40 40 20 Territory with intermediate economic vitality 15 50 30 15 Territory with high economic vitality 10 20 20 10 Given the upcoming ending date of the tax credit, currently scheduled for December 31, 2024, and the end of the temporary rate increase, scheduled for December 31, 2023, the government wishes to make changes to the tax credit relating to investment and innovation to further encourage investment by providing a more favourable and predictable tax environment. Therefore, in order to support Québec businesses in their objective to increase productivity and further encourage wealth creation in Québec, particularly in a context of labour shortage, tax legislation will be amended to extend and enhance the tax credit relating to investment and innovation. More specifically, these amendments will consist in: extending the tax credit for an additional five-year period; enhancing the rates applicable as of January 1, 2024; making the tax credit fully refundable for all qualified corporations; shortening the period over which the $100 million cumulative limit is calculated; easing certain conditions for claiming the tax credit. Correlatively, the definition of "territory with low economic vitality" will be amended, and a deadline extension will be provided for in certain specific circumstances. 7 MINISTÈRE Information, DES FINANCES DU QUÉBEC, Budget 2021-2022- Additional pp. A.12-A.14. Id., Budget 2022-2023 - Additional Information, March 22, 2022, pp. A.9-A.11. March 25, 2021,#51.1 INFORMATION BULLETIN November 7, 2023 2023-6 Amendments relating to the extension of the tax credit □ Extension of the tax credit relating to investment and innovation The tax legislation will be amended so that an additional five-year period will be allowed for a qualified corporation to benefit from the tax credit relating to investment and innovation. The definition of "specified property" will be amended so that a property may qualify as a specified property if it is acquired before January 1, 2030, and otherwise meets the other conditions set out in the tax legislation. Similarly, a change will be made to the rules considered in applying the definition of “specified expenses" to provide that such expenses must now be incurred before January 1, 2030. ☐ Correlative amendment to the definition of "territory with low economic vitality" The Institut de la statistique du Québec periodically issues the economic vitality index of the territories. This tool classifies Québec's various localities according to specific indicators. Following the publication of the 2023 edition of the economic vitality index of the territories, 10 amendments to the tax credit relating to investment and innovation were announced in Information Bulletin 2023-411 to reflect the fact that the Appalaches and Témiscamingue RCMs are now in the bottom quartile of the ranking, while they were previously in the third quartile, and that the Matawinie and Argenteuil RCMs are no longer in the bottom quartile. Given that the ending date of the tax credit relating to investment and innovation was initially planned for December 31, 2024, no amendment was made to the tax legislation at the time to remove the RCMs of Matawinie and Argenteuil from the definition of “territory with low economic vitality".1 12 However, due to the extension of the tax credit relating to investment and innovation until December 31, 2029, the tax legislation will be amended to remove the RCMs of Matawinie and Argenteuil from the definition of "territory with low economic vitality". To ensure an appropriate transition period, this amendment will apply to specified expenses incurred after June 30, 2025 for the acquisition of a specified property after that date. Taxation Act, s. 1029.8.36.166.60.36, para. 1. 8 9 Ibid., para. 2. 10 INSTITUT DE LA STATISTIQUE DU QUÉBEC, Bulletin d'analyse Indice de vitalité économique des territoires. Édition 2023, [Online] [https://statistique.quebec.ca/en/fichier/bulletin-analyse-indice-vitalite-economique- territoires-edition-2023.pdf] (in French only). MINISTÈRE DES FINANCES DU QUÉBEC, Information Bulletin 2023-4, June 27, 2023, pp. 13-15. 11 12 See note 8. 5#61.2 INFORMATION BULLETIN November 7, 2023 Amendments relating to the enhancement of certain parameters of the tax credit ☐ Enhancement of the rates of the tax credit relating to investment and innovation 2023-6 The tax legislation will be amended to enhance the rates of the tax credit relating to investment and innovation applicable as of January 1, 2024, so that the rate of the tax credit will be: ■ 25% for specified property acquired to be used mainly in a territory with low economic vitality; 20% for a specified property acquired to be used mainly in a territory with intermediate economic vitality; 15% for a specified property acquired to be used mainly in a territory with high economic vitality. Application date This enhancement will apply to specified expenses incurred: after December 31, 2023; or after March 25, 2021 and before January 1, 2024, for the acquisition of a specified property after December 31, 2023. However, this enhancement will not apply to specified expenses incurred after March 25, 2021 and before January 1, 2024, for the acquisition of a specified property after December 31, 2023 and before April 1, 2024 if: the property was acquired in accordance with a written obligation contracted before January 1, 2024; or the construction of the property by or on behalf of the corporation or partnership began before January 1, 2024. This enhancement will also not apply to property: acquired in accordance with a written obligation contracted before March 26, 2021; or whose construction by or on behalf of the corporation or partnership had started on March 25, 2021. ☐ Amendment to broaden the application of the refundability of the tax credit The tax credit relating to investment and innovation to which a qualified corporation is entitled, for a taxation year, may be deducted from its total taxes for the taxation year. The portion of the tax credit of a taxation year that cannot be used to reduce the corporation's total taxes for the year may be refunded, in whole or in part, or carried back to the preceding three taxation years or forward to the subsequent twenty taxation years. 6#7INFORMATION BULLETIN November 7, 2023 2023-6 For a qualified corporation to be able to benefit fully from the refundability of the tax credit relating to investment and innovation for a particular taxation year, its assets and its gross income, applicable for the taxation year, must not exceed $50 million. In addition, a qualified corporation cannot benefit from the refundability of this tax credit if its assets or its gross income, applicable for the taxation year, are equal to or exceed $100 million. To allow a qualified corporation to benefit from this tax credit, for a taxation year, regardless of its total taxes for that taxation year, amendments will be made to remove the requirement relating to assets as well as that relating to gross income. The tax legislation will therefore be amended so that a qualified corporation, for a taxation year, is able to benefit fully from the refundability of the tax credit relating to investment and innovation, regardless of its assets or its gross income. Application date The amendment to broaden the application of the refundability of the tax credit will apply in respect of specified expenses incurred in a taxation year that begins after December 31, 2023. For greater clarity, no amendment will be made to the tax legislation in respect of the unused portion of the tax credit relating to investment and innovation of a corporation for a previous taxation year of the corporation. 13 ☐ Amendment to the calculation of the balance of the cumulative specified expense limit An amendment will be made to the calculation of the balance of the cumulative specified expense limit of a qualified corporation for the purposes of the tax credit relating to investment and innovation, so that the cumulative limit of $100 million currently calculated for a five-year period will now be calculated for a four-year period. The tax legislation will therefore be amended to provide that the balance of the cumulative specified expense limit of a qualified corporation, for a particular taxation year, will be equal to the excess of $100 million over the total of the following amounts: the qualified corporation's specified expenses and, if the corporation is a member of an associated group, the specified expenses of another corporation that is a member of the associated group, in respect of which the tax credit relating to investment and innovation could be claimed for a taxation year ended in the 36-month period preceding the beginning of the particular year; the share of a qualified partnership's specified expenses in respect of which the qualified corporation or, if the qualified corporation is a member of an associated group, another corporation that is a member of the associated group could claim the tax credit relating to investment and innovation for a taxation year ended in the 36-month period preceding the beginning of the particular year; 13 This non-refundable portion of a previous taxation year may nevertheless be carried forward to the preceding three taxation years and the subsequent twenty taxation years, in accordance with the rules currently applicable. 7#8- INFORMATION BULLETIN November 7, 2023 2023-6 the qualified corporation's eligible expenses 14 and the share of the eligible expenses of a qualified partnership of which the corporation is a member, in respect of which the corporation can benefit, for the particular year, or could benefit, for a taxation year ended in the 36-month period preceding the beginning of the particular year, from a higher rate or from the refundability of the investment tax credit relating to manufacturing and processing equipment (hereinafter referred to as the "tax credit for investments"); if the corporation is a member of an associated group, the eligible expenses of another corporation that is a member of the associated group and the share of the eligible expenses of a qualified partnership of which the other corporation is a member, in respect of which the other corporation can benefit, for a taxation year ended in the particular year or at the same time as the particular year, or could benefit, for a taxation year ended in the 36-month period preceding the beginning of the particular year, from a higher rate or from the refundability of the tax credit for investments. The balance of the cumulative limit on a qualified partnership's specified expenses, for a particular fiscal period, will be equal to the amount by which $100 million exceeds the total of the following amounts: the specified expenses of the partnership incurred in a fiscal period ended in the 36-month period preceding the beginning of the particular fiscal period in respect of which a qualified corporation that is a member of the partnership could claim the tax credit relating to investment and innovation; the eligible expenses incurred by the partnership in the particular fiscal period or in a fiscal period ended in the 36-month period preceding the beginning of the particular fiscal period in respect of which a qualified corporation that is a member of the partnership can benefit or could benefit from a higher rate or from the refundability of the tax credit for investments. The other rules currently in effect concerning the balance of the cumulative specified expense limit of a qualified corporation or a qualified partnership, or concerning a joint venture, continue to apply. Application date This amendment to the calculation of the balance of the cumulative specified expense limit will apply in respect of a taxation year beginning after December 31, 2023. 14 Taxation Act, s. 1029.8.36.166.60.36. 8 00#91.3 INFORMATION BULLETIN November 7, 2023 Amendments to ease certain conditions for claiming the tax credit ☐ Amendment to the definition of "specified expenses" 2023-6 In order for a qualified corporation to benefit from the tax credit relating to investment and innovation for a taxation year, the specified expenses it has incurred in respect of a specified property must have been paid when claiming this tax credit. Briefly, under the definition of "specified expenses", 15 for the purposes of the tax credit relating to investment and innovation, expenses incurred by a qualified corporation in a taxation year and paid no later than the last day of the 18-month period following the end of such taxation year are specified expenses of the corporation for the year in which they were incurred if they satisfy the other conditions set out in the Taxation Act. If they are paid more than 18 months after the end of the taxation year in which they were incurred, then they are specified expenses of the corporation for the taxation year in which they were paid. Accordingly, when specified expenses are incurred in a particular taxation year and paid after the end of the particular year, but no later than the last day of the 18-month period following the end of the particular year, the tax credit relating to these expenses must be claimed in respect of the particular year, that is, the year in which they were incurred. In order to ease the conditions for claiming the tax credit relating to investment and innovation, the definition of “specified expenses" will be amended to provide that a qualified corporation may also claim this tax credit in respect of the taxation year in which the specified expenses are paid when they are paid after the end of the taxation year in which they were incurred, but no later than the end of the 18-month period following the end of such taxation year. More specifically, expenses incurred by a qualified corporation in a particular taxation year, or in a previous taxation year for which the corporation was a qualified corporation, for the acquisition of a specified property, that are included at the end of the particular year or at the end of the previous taxation year, as the case may be, in the capital cost of the property and that are paid after the end of the particular year or the previous year, as the case may be, but no later than 18 months after the end of the particular year, will be specified expenses of the corporation for the particular year, unless the corporation has claimed the tax credit relating to investment and innovation in respect of such expenses for a taxation year prior to the particular year, if they otherwise satisfy the other applicable conditions. An equivalent amendment will be made to the definition of “specified expenses" in respect of expenses incurred by a qualified partnership, with the necessary adaptations. 15 See note 8. 9#10INFORMATION BULLETIN November 7, 2023 2023-6 ■ Application date This amendment to the definition of "specified expenses" will apply in respect of expenses incurred by a corporation in a taxation year of the corporation that ends after the date of publication of this information bulletin. Where the expenses are incurred by a partnership, this amendment will apply in respect of expenses incurred by a partnership in a fiscal period of the partnership that ends after the day on which this information bulletin is published. ☐ Deadline extension in certain circumstances To claim the tax credit relating to investment and innovation for a taxation year, a qualified corporation must submit the prescribed form containing the prescribed information to the Minister of Revenue no later than the last day of the 12-month period following the filing-due date 16 applicable to it for the taxation year. 17 Failure to submit the prescribed form containing the prescribed information to the Minister of Revenue before the filing-due date will result in the loss of the corporation's right to claim the tax credit relating to investment and innovation. Correlatively to the amendment to the definition of "specified expenses" in this information bulletin, an extension of the deadline for submitting the application form for the tax credit relating to investment and innovation will be provided in certain specific circumstances. Amendments will be made to the tax legislation to grant a corporation an extension of the deadline for submitting to the Minister of Revenue the prescribed form containing the prescribed information for claiming the tax credit relating to investment and innovation, in cases where such a claim has been submitted by the corporation but has been denied by the Minister in respect of all or part of the specified expenses incurred by the corporation on the grounds that the tax credit was not claimed for the taxation year in which the expenses were incurred. In this case, notwithstanding the expiry of the deadline for filing the prescribed form for claiming the tax credit relating to investment and innovation, the qualified corporation may submit again the prescribed form for claiming the tax credit in respect of such expenses for which the corporation was unable to claim the tax credit, for the taxation year in which the expenses were incurred. For greater clarity, this claim will be treated as an initial claim for the tax credit relating to investment and innovation for the purpose of calculating interest on refunds, if any. 16 Taxation Act, s. 1, definition of "filing-due date". In the case of a corporation, this date corresponds, for a taxation year, to the end of the six-month period following the end of that taxation year (Taxation Act, s. 1000, para. 2, subpara. a). 17 Ibid., s. 1029.6.0.1.2. 10#11INFORMATION BULLETIN November 7, 2023 2023-6 To benefit from such an extension, a corporation must submit the prescribed application form for the tax credit relating to investment and innovation containing the prescribed information to the Minister of Revenue no later than the latest of the following dates: - the 183rd day following that of the mailing of the notice of assessment or notice of reassessment issued to the corporation and refusing in whole or in part the application for the tax credit on the grounds that the tax credit was not claimed for the taxation year in which the expenses were incurred; June 30, 2024. 2. ABOLITION OF THE ADDITIONAL CAPITAL COST ALLOWANCE OF 30% On December 3, 2018, when Information Bulletin 2018-918 was published, an additional capital cost allowance of 30% was introduced. This additional deduction allows a taxpayer who acquires contemplated property after December 3, 2018 to deduct in computing income from a business for a taxation year, an amount corresponding to 30% of the amount deducted in computing such income, for the previous taxation year, on account of the capital cost allowance for the contemplated property. 19 In summary, contemplated property means a particular property that is machinery or equipment used in manufacturing or processing, namely, property included in Class 53 of Schedule B to the Regulation respecting the Taxation Act, clean energy generation equipment, namely, property included in Class 43.1 or 43.2 of the schedule, or property composed of general-purpose electronic data processing equipment and systems software for that equipment, namely, property included in Class 50 of the schedule. The particular property must, among other things, be new at the time of its acquisition, and be used primarily in Québec for a period of at least 730 days. Contemplated property also includes a qualified intellectual property. As a result of the amendments to the tax credit relating to investment and innovation in this information bulletin, which essentially targets the same types of investment as the additional capital cost allowance of 30%, this additional deduction will be abolished. Accordingly, tax legislation will be amended to provide for the abolition of the additional capital cost allowance of 30% as of January 1, 2024. Accordingly, only property that meets the conditions otherwise set forth for claiming the additional capital cost allowance of 30% and that is acquired not later than December 31, 2023, may give entitlement to the additional capital cost allowance of 30% for the remainder of the period applicable in respect of the qualified property. 18 19 MINISTÈRE DES FINANCES DU QUÉBEC, Information Bulletin 2018-9, December 3, 2018, pp. 16-17. The additional 30% capital cost allowance also applies, with the necessary adjustments, when the property is acquired by a partnership. 11#12INFORMATION BULLETIN November 7, 2023 3. ADJUSTMENT OF THE EXEMPTIONS ALLOWED FOR THE PURPOSE OF CALCULATING THE PREMIUM PAYABLE UNDER THE PUBLIC PRESCRIPTION DRUG INSURANCE PLAN 2023-6 The basic prescription drug insurance plan established by the Québec government guarantees all Quebecers fair access to the medications required by their state of health. Coverage under this plan is provided either by the Régie de l'assurance maladie du Québec (RAMQ), as the administrator of the Public Prescription Drug Insurance Plan (PPDIP), or by insurers transacting group insurance or by administrators of private-sector employee benefit plans. As a general rule, the RAMQ provides, on the one hand, coverage for individuals who are not required to become members of a group insurance contract, an individual insurance contract concluded on the basis of one or more of the distinctive characteristics of group insurance, 20 or an employee benefit plan applicable to a determined group of persons and, on the other hand, coverage for those persons whom no one is required to cover. Adults registered with the RAMQ must make a contribution towards the payment of the cost of pharmaceutical services and drugs supplied to them whenever a prescription is filled or renewed. This contribution, which may not exceed a maximum amount, consists of a deductible amount21 and a coinsurance payment.22 However, adults whose income consists essentially of social assistance benefits based on an examination of resources, needs or income are exempted from the payment of any contribution. This exemption, which targets the most disadvantaged persons, is geared more specifically to certain persons eligible for a financial assistance program stipulated in the Individual and Family Insurance Act, 23 as well as persons aged 65 or over receiving 94% or more of the maximum amount of the monthly Guaranteed Income Supplement under the Old Age Security Act24 determined without taking into account the amount that may be added to the amount of the supplement since July 2011. Adults who are not covered throughout a year by a group insurance contract, an individual insurance contract concluded on the basis of one or more of the distinctive characteristics of group insurance or by an employee benefit plan applicable to a determined group of persons must generally pay a premium for that year to finance the PPDIP. For information purposes, for the 2023 calendar year, the maximum premium payable is $720.50 per adult. However, most adults who are exempted from the payment of any contribution for the cost of the pharmaceutical services and drugs provided to them under the PPDIP are also exempted from payment of the premium. 20 21 22 The individual insurance contract must be covered by section 42.2 of the Act respecting prescription drug insurance (CQLR, chapter A-29.01). The deductible amount is the portion of the cost of pharmaceutical services and prescription drugs borne entirely by the person covered by the plan during the reference period. Since July 1, 2023, the deductible amount is $275 per year, divided into equal monthly amounts. The coinsurance payment is the portion of the cost of pharmaceutical services and medications borne by the person covered by the plan until the maximum contribution is reached. Since July 1, 2023, the coinsurance percentage is 33%. 23 CQLR, chapter A-13.1.1. 24 R.S.C. 1985, c. O-9. 12#13INFORMATION BULLETIN November 7, 2023 2023-6 Moreover, to reflect a household's ability to pay, the annual premium payable by an adult is determined on the basis of family income, from which an exemption amount based on the household's composition is subtracted.25 Since the introduction of the PPDIP, the amount of these exemptions has been adjusted annually to protect household purchasing power. In addition, to ensure the progressivity of the premium, two contribution rates are applicable. The first rate 26 applies to the first $5 000 of income covered, and the second rate, 27 to the portion exceeding $5 000. Accordingly, to maintain the principles underlying the determination of the amount of the premium payable under the PPDIP, the government will adjust, for 2023, the amount of each of the exemptions currently allowed. The following table shows the amount of each of the allowable exemptions for 2023, according to household composition. TABLE 2 Amount of the exemptions allowed for the purpose of calculating the premium payable under the PPDIP for 2023 (dollars) Household composition 1 adult, no children 1 adult, 1 child 1 adult, 2 or more children 2 adults, no children 2 adults, 1 child 2 adults, 2 or more children Amount of the exemption 18 910 30 640 34 545 30 640 34 545 38 150 25 26 27 The amount that must be applied to reduce family income makes it possible to exempt from payment of the premium adults whose family income is below a certain threshold. For 2023, the first contribution rate is 7.47%, in the case of a single person, and 3.75% in the case of a person living as a couple. For 2023, the second contribution rate is 11.22%, in the case of a single person, and 5.62%, in the case of a person living as a couple. 13