Ontario Bill 70, enacting fall economic statement tax measures, has received Royal Assent.
Bill 70 is considered substantively enacted for IFRS and Accounting Standards for Private Enterprise (ASPE) purposes as of November 16, 2016, which is when it received first reading in the provincial legislature (since Ontario has a majority government). Bill 70 is considered enacted for U.S. GAAP purposes on December 8, 2016, the date the bill received Royal Assent.
The bill makes several changes to the Land Transfer Tax Act, including rate increases on all types of real property, effective January 1, 2017. A tax rate increase to 2.5% (from 2%) applies to one or two single-family residences, on the portion of the value of consideration above $2 million. The tax rate for all other properties (e.g. commercial, industrial, multi-residential and agricultural properties) will increase to 2% (from 1.5%) on the portion of the value of consideration above $400,000. The rate increases will not apply to purchasers who entered into purchase and sale agreements on or before November 14, 2016.
Among other changes, the bill also includes a new Ontario Interactive Digital Media Tax Credit application deadline to qualify for product certification and repeals the Ontario Retirement Pension Plan Act (Strengthening Retirement Security for Ontarians), 2016 and related acts.
For more information, contact your KPMG adviser.
Information is current to December 20, 2016. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500