Canada: 2022 federal budget passes third reading
Several tax measures from the 2022 budget, passed its third reading in the House of Commons
Several tax measures from 2022 budget, passed its third reading in the House of Commons
Canada's first budget implementation bill, which includes several tax measures from the 2022 budget, passed its third reading in the House of Commons.
Bill C-19 also includes several outstanding 2021 federal budget measures including:
- Immediate expensing of certain capital property for Canadian-controlled private corporations (CCPCs), sole proprietors and certain partnerships
- Corporate income tax rate reductions for zero-emission technology manufacturing
- Changes to capital cost allowance (CCA) for clean energy equipment
- A new luxury tax on certain new aircrafts and motor vehicles priced over $100,000* and certain boats priced over $250,000
- Temporary extension to the period for incurring eligible expenses and other deadlines under film or video production tax credits
Prior to passing third reading, several measures in Bill C-19 were amended. Specifically, the amendments include changes to the coming-into-force provision for the proposed luxury tax on certain aircraft and changes to some of the indirect tax measures in the bill. The amendments also clarify that the proposed two-year ban on foreign purchases of Canadian residential property will now come into force on 1 January 2023.
Note that Bill C-19 does not include corporate tax changes proposed in the 2022 federal budget, such as the "substantive CCPC" rules, the one-time 15% Canada Recovery Dividend on bank and life insurer groups or the additional 1.5% tax on the taxable income for members of bank and life insurer groups (as determined for the purposes of the dividend).
Read a June 2022 report prepared by the KPMG member firm in Canada
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