Canada

Canada's individual tax summary reflects all 2023 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 2023 federal budget at www.pwc.com/ca/budget.

Alternative minimum tax for high-income individuals

For taxation years that begin after 2023, draft legislative proposals increase 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.

Mandatory disclosure rules

Recently enacted legislation enhances Canada’s mandatory reportable transaction disclosure rules, with various implementation dates. See Mandatory disclosure rules in the Tax administration section and our Tax Insights ‘Mandatory disclosure rules: Taxpayers, advisers and promoters need to prepare' and 'Mandatory disclosure rules: Canada Revenue Agency officially designates first set of transactions for notifiable transactions regime' at www.pwc.com/ca/taxinsights for more information.

Canadian housing owned by non-residents

Transitional one-time relief waives interest and penalties under the federal Underused Housing Tax (UHT) Act on late-filed UHT tax returns and late payments for the 2022 calendar year, provided the return is filed and the UHT is paid by 30 April 2024; this effectively extended the 2022 calendar year deadline by one year. See Property taxes in the Other taxes section and our Tax Insights 'The underused housing tax – A new compliance requirement for many owners of Canadian residential property’ (1 November 2023 update) at www.pwc.com/ca/taxinsights for more information.

Tax-free First Home Savings Account

Starting 1 April 2023, a new registered account, the Tax-Free First Home Savings Account (FHSA), is available for certain Canadian residents aged 18 and over. Contributions are deductible (annual limits apply, lifetime limit of 40,000 Canadian dollars [CAD]). See Registered plans in the Deductions section for more information.

Reporting requirements for trusts

New tax return filing and information reporting requirements for trusts will 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 is 30 March 2024. 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.