Finance is accepting comments
The Department of Finance has released draft legislation to implement the Canadian Entrepreneurs’ Incentive, which will allow individuals to apply a reduced 1/3 inclusion rate on certain capital gains from qualifying dispositions, beginning in 2025.
The draft legislation reflects several changes to the original budget proposal, including expanded eligibility for the new incentive and an accelerated five-year phase-in period. Finance is accepting comments until September 11, 2024.
In addition, Finance released updated draft legislation that clarifies certain aspects of the proposed change to increase the capital gains inclusion rate for capital gains realized on or after June 25, 2024. Although this draft legislation is largely the same as the previous draft released in June 2024, changes include new transitional rules affecting the capital dividend account and hybrid surplus. Finance is accepting comments until September 3, 2024.
Read an August 2024 report prepared by the KPMG member firm in Canada