Cooperative Investment Plan (CIP)

What is the Cooperative Investment Plan (CIP)?

The CIP offers a tax advantage to corporate members and employees who participate in the capitalization of a cooperative. When combined with an RRSP, the combination becomes an effective accounting tool for subscribers.

Who can subscribe to the 2023 CIP?

• Corporate members.
• Cooperative employees.

Please note that the program is reserved for Quebec residents only.

Why subscribe to 2023 CIP?

• Guaranteed returns.
• The dividend cheque is paid annually to the subscriber.
  • To thank you for your investment, Uniag returns an annual dividend in the form of a cash payment.
• The investment is 125% tax deductible at the provincial level.
• The investment is RRSP-eligible, for a 225% provincial tax deduction.

A few technical details

• Redemption date
  • Five (5) years after subscription. For example, a security issued in December 2023 will be eligible for redemption in December 2028.
• Allowed tax deduction
  • 125% of investment deductible at provincial level only, for all subscribers.
• Dividend
  • Dividends must be paid in cash. Dividends can no longer be converted directly into new CIP shares.
• Rules to remember
  • Enter contributions in the right place on the tax return:
    • CIP on line 287 (Quebec);
    • RRSPs on lines 214 (Quebec) and 208 (Canada)
  • Be aware of the maximum contributions allowed:
    • CIP: 30% of total income (line 275)
    • RRSP: unused contribution room according to Revenue Canada

To find out more about the CIP, please visit the Publications du Québec website. https://www.legisquebec.gouv.qc.ca/en/document/cs/R-8.1.1