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Canada: Tax proposals in 2024 federal fall economic update

It is unclear whether the tax measures announced in the 2024 fall economic update will be enacted.

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December 17, 2024

The federal government on December 16, 2024, issued the 2024 fall economic update, which includes proposals to:

  • Change the scientific research and experimental development (SR&ED) program
  • Enhance the capital gains deferral on small business share rollovers
  • Reinstate the accelerated investment incentive and immediate expensing measures for certain property
  • Impose additional reporting requirements on non-profit organizations

Due to ongoing uncertainty in Parliament, it is unclear whether the tax measures announced in the 2024 fall economic update will be enacted. Because Canada has a minority federal government, these tax measures cannot be passed into law without the support of opposition political parties.

Read a December 2024 report prepared by the KPMG member firm in Canada

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