Canada

Canada's individual tax summary reflects all 2024 federal, provincial, and territorial budgets. The summary is based on enacted and proposed legislation and assumes that the proposed legislation will become law. Generally, budget proposals and draft legislation are enacted into law, even with a minority federal government, which is currently the case. For more details of the proposed new individual tax measures noted in the summary, see our Tax Insights on the 2024 federal budget at www.pwc.com/ca/budget.

Capital gains inclusion rate

The 2024 federal budget proposes to increase the capital gains inclusion rate from one half to two thirds for the portion of capital gains realised by individuals after 24 June 2024 that exceeds an annual 250,000 Canadian dollars (CAD) threshold. See Capital gains in the Income determination section for more information.

Canadian Entrepreneurs' Incentive

The 2024 federal budget introduces the Canadian Entrepreneurs' Incentive, which will reduce the taxes on capital gains from the disposition of certain shares of a small business corporation owned directly by an eligible individual. See Canadian Entrepreneurs' Incentive in the Income determination section for more information.

Alternative minimum tax for high-income individuals

For taxation years that begin after 2023, recently enacted legislation increases the alternative minimum tax rate and exemption and broaden its calculation base. See Alternative Minimum Tax (AMT) in the Taxes on personal income section and our Tax Insights ‘Proposed changes to the alternative minimum tax: How will it affect individuals and trusts?' at www.pwc.com/ca/taxinsights for more information.

Reporting requirements for trusts

New tax return filing and information reporting requirements for trusts have come into effect for taxation years that end after 30 December 2023. The new rules require trustees to gather and report significantly more information; the filing deadline for a trust with a 31 December 2023 taxation year-end was 2 April 2024. However, for the 2023 taxation year, the Canada Revenue Agency (CRA) will not require 'bare trust' arrangements to file this return, unless the CRA makes a direct request for it. See Reporting requirements for trusts in the Other issues section and our Tax Insights 'New trust filing and information reporting rules are now enacted: Trustees need to be prepared' at www.pwc.com/ca/taxinsights for more information.