Canada: Indirect tax, concerning real estate industry | KPMG | GLOBAL

Canada: Indirect tax, 2016 budget items concerning real estate industry

Canada: Indirect tax, concerning real estate industry

Entities in the real estate sector may want to consider preparing for the effect of certain GST/HST* tax changes proposed in the 2016 federal budget. Specifically, the budget proposes measures for:


Related content

  • Reporting “grandparented” housing sales (i.e., that were grandparented from HST rate increases or the introduction of HST in provinces since 2010)
  • GST/HST de minimis financial institution rules—interest from guaranteed investment certificates (GICs) or deposits
  • The “closely related” test for GST/HST elections 


* GST/HST = goods and services tax / harmonized sales tax


The 2016 budget indicates that the government will not proceed with proposed measures affecting the donation of real estate or make changes to the rules on determining whether certain income from property would qualify as active business income. 


Read a March 2016 report prepared by the KPMG member firm in Canada: Real Estate Industry — Prepare for 2016 Federal Budget Measures

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