Ontario's Bill 2, which includes a measure to extend the temporary increase to the Regional Opportunities Investment Tax Credit, received Royal Assent on September 8, 2022. Bill 2 also includes changes to the Ontario Book Publishing Tax Credit, among other measures announced in Ontario’s 2022 budget.
The corporate income tax measures in Bill 2 are considered enacted for U.S. GAAP purposes as of September 8, 2022 (the date the bill received Royal Assent). These measures, which were previously included in Ontario’s former 2022 budget bill (Bill 126), were considered substantively enacted for IFRS and Accounting Standards for Private Enterprise (ASPE) purposes when Bill 126 received first reading on April 28, 2022 (as Ontario had a majority government). Bill 2 reintroduced these measures after Bill 126 died on the order paper ahead of the Ontario general election on June 2, 2022.
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 September 12, 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