Canada

Individual - Significant developments

Last reviewed - 16 December 2019

Canada's individual tax summary reflects all 2019 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.

Employee stock options

Draft legislative proposals limit the use of the current employee stock option tax regime and move towards aligning the tax treatment of stock options with the United States for employees of large, long-established, mature firms. See Equity compensation in the Income determination section for more information. 

Mutual fund trust redemptions

Draft legislative proposals address deferral and character conversion benefits realised by mutual fund trust unitholders on redemption of their mutual fund trust units, by denying deductions to mutual fund trusts under certain conditions, for taxation years of mutual fund trusts beginning after 18 March 2019. See Capital gains in the Income determination section for more information.

British Columbia speculation and vacancy tax (SVT)

The SVT was imposed, starting in 2018, on residential property in certain urban centres in British Columbia. This new property tax targets foreign and domestic home owners who do not pay income tax in British Columbia, including those who leave their homes vacant. Up-front exemptions are available for most primary residences, qualifying long-term rental properties, and certain special cases. See Property taxes in the Other taxes section for more information.