Canadian-Controlled Private Corporations (CCPC) will be allowed to immediately expense certain depreciable properties, other than long lived assets (such as buildings, parking lots, intangibles, etc.), acquired on or after April 19, 2021, and that are available for use before January 1, 2024. Tax applies at the point of purchase, and is subject to GST/HST. The amount of tax on boats priced over $250,000 will be equal to the lesser of 10% of the full value of the boat or 20% of the value above $250,000. Effective January 1, 2022, the federal government proposes a 10% luxury tax on the sale of new passenger vehicles and personal aircrafts priced over $100,000, and boats priced over $250,000 before GST/HST.įor vehicles and aircrafts priced over $100,000, the amount of the tax will be equal to the lesser of 10% of the full value of the vehicle or the aircraft, or 20% of the value above $100,000. Starting in 2023, all owners of residential property in Canada, other than Canadian citizens or permanent residents of Canada will be required to file an annual declaration for the previous calendar year with the Canada Revenue Agency (CRA), in respect of each Canadian residential property owned.ĭefinitions for residential property, value, and how the tax would apply will be coming shortly in a CRA backgrounder, which will allow stakeholders an opportunity to comment on this proposed tax. Beginning in 2022, a new national 1% tax will be applied on the value of non-resident, non-Canadian owned residential real estate considered to be vacant or underused. Employers cannot claim both the new Hiring subsidy and the CEWS. The subsidy will be at a rate of 50% and calculated based on the increase in overall payroll of all employees of the employer. This program provides an alternative to the CEWS and is largely available under the same circumstances. In addition, the budget offers a new subsidy known as the “Canada Recovery Hiring Program” for Canadian Controlled Private Corporations (“CCPCs”) starting on Jfor a period of 6 months. The Federal government is also contemplating the possibility of extending both programs for an extra 2 periods to November 20, 2021. The maximum subsidy rate for the CEWS and CERS will be on a scaled down basis from 75% for CEWS and 65% for CERS to 20% respectively. The Federal government is proposing to extend the Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Rent Subsidy (CERS) for an additional 4 periods until September 25, 2021. Individuals that electronically file their returns will now be receiving their notices of assessment electronically. Fortunately, neither of these changes were included in the budget.Īs well, the government will now require that income tax payments over $10,000 be remitted electronically effective January 2022. Much rumored changes were an increase in the capital gains inclusion rate and elimination of the capital gains exemption on principal residences. Our Tax Specialists have compiled the highlights of the 2021-2022 Canadian Federal Budget.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |