Canada: Details of changes to AMT rules in draft legislation
Draft legislation for consultation includes outstanding 2023 federal budget measures, including significant changes to AMT rules
Details of changes to AMT rules in draft legislation
The Department of Finance on 4 August 2023 released draft legislation for consultation that includes outstanding 2023 federal budget measures, including significant changes to the alternative minimum tax (AMT) rules. Read TaxNewsFlash
Although the draft legislation generally follows the budget proposals, it also includes some unexpected changes, such as a proposal to increase to 100% (from 50%) the AMT inclusion rate for capital gains on donations of property other than publicly listed securities. It also would expand the types of trusts not subject to the AMT rules to include graduated rate estates, trusts with classes of their units traded on a designated stock exchange, certain investment funds, and others.
The draft legislation is proposed to apply for tax years beginning after 2023.
Finance is accepting comments on the revised draft legislation until 8 September 2023.
Read an August 2023 report [PDF 229 KB] prepared by the KPMG member firm in Canada
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