Canada: Finance releases draft tax legislation package, including global minimum tax and excise tax changes

Comments due by September 12, 2025

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August 22, 2025

The Department of Finance on August 15, 2025, released draft legislation related to:

  • Excessive interest and financing expenses limitation (EIFEL) exemptions
  • The scientific research and experimental development (SR&ED) tax incentive program
  • Canadian-controlled private corporations (CCPCs) rules
  • Capital gains deferral on small business share rollovers
  • Reporting requirements for certain trusts and non-profit organizations
  • Capital gains exemption for certain sales of businesses

Alongside this draft legislation, Finance also released draft legislation for the Global Minimum Tax Act, the Excise Tax Act and several other Income Tax Act technical tax amendments.

Finance is accepting comments on the draft legislative proposals until September 12, 2025.

Read an August 2025 report prepared by the KPMG member firm in Canada

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