Ontario’s Bill 2, which includes corporate income tax changes announced in the province’s 2022 budget, received first reading on August 9, 2022. This bill reintroduces measures which were included in Ontario’s previous 2022 budget bill (Bill 126), including measures to extend certain corporate tax credits, among other changes. Bill 126 received first reading on April 28, 2022, but subsequently died on the order paper ahead of the Ontario general election on June 2, 2022.
The corporate income tax measures reintroduced in Bill 2 continue to be considered substantively enacted for purposes of IFRS and ASPE as of April 28, 2022 (the date the former bill received first reading), as Ontario has a majority government. The corporate income tax measures included in Bill 2 are not considered enacted for U.S. GAAP until the bill receives Royal Assent.
Corporate income tax measures
Ontario Bill 2 includes corporate income tax measures to:
- Extend the temporary increase to the Regional Opportunities Investment Tax Credit to 20% (from 10%) for an additional year, for qualifying investments in certain geographic regions of Ontario that become available for use from March 24, 2021 to December 31, 2023 (previously December 31, 2022)
- No longer require a literary work to be published in an edition of at least 500 copies of a bound book to be eligible for the Ontario Book Publishing Tax Credit for the 2022 and subsequent taxation years (this requirement was previously temporarily removed for the 2020 and 2021 taxation years).
For more information, contact your KPMG adviser.
Information is current to August 15, 2022. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500