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, the 2023 federal budget proposes to 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 ‘2023 Federal budget: Supporting a clean economy' at www.pwc.com/ca/budget for more information.
Mandatory disclosure rules
Draft 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' 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 UHT tax returns and payments for the 2022 calendar year late-filed and made within the six month extension period granted to 31 October 2023. 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’ (5 April 2023 update) at www.pwc.com/ca/taxinsights for more information.
Tax-free First Home Savings Account
Recently enacted legislation creates a new registered account, the Tax-Free First Home Savings Account (FHSA), effective 1 April 2023, for certain Canadian residents aged 18 and over, which permits deductible contributions of up to 8,000 Canadian dollars (CAD) annually (lifetime limit of CAD 40,000). See Registered plans in the Deductions section for more information.
Reporting requirements for trusts
Recently enacted legislation implements new tax return filing and information reporting requirements for trusts that 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 31 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.