The U.S. House of Representatives recently approved a new budget bill (the “One Big Beautiful Bill Act”) that proposes, among other things, to effectively increase tax rates for Canadian individuals and entities that earn U.S. income. The budget bill, which includes modified tax measures previously proposed in 2025, are meant to address what the U.S. considers to be “unfair foreign taxes” applied by many countries, including Canada. Although these measures are still subject to amendments and must clear several legislative hurdles before they are enacted, affected Canadian companies and investors should continue to follow the developments of these proposals and consider planning opportunities.
Following approval from the U.S. House of Representatives, the bill that contains these measures will now be sent to the U.S. Senate, which is expected to make further changes, including possibly amending the tax provisions. Note that the final version of the bill must also receive U.S. Senate and presidential approval before it can become law.
Download this edition of the TaxNewsFlash to learn more.
