Canada: Ontario corporate, individual tax measures are enacted

Canada: Ontario corporate, individual tax measures

Bill 173—that implements certain measures in Ontario’s 2016 budget—received Royal Assent on 19 April 2016. Bill 173 received first reading on 25 February 2016.

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Bill 173 contains corporate tax measures to reduce rates for the Ontario research and development tax credit and the Ontario innovation tax credit. 

Individual (personal) tax measures from Ontario's 2016 budget contained in Bill 173 include:

  • Repeal of the Ontario tuition and education tax credits for enrolments before September 2017
  • Application of the top marginal individual (personal) income tax rate to split income (to parallel the federal approach to taxing income that is split with certain related children who are minors) starting in 2016
  • Discontinuation of the children’s activity tax credit and the healthy homes renovation tax credit as of 1 January 2017.  

Bill 173 also contains a change to the calculation of an individual's alternative minimum tax, which had not been included in the 2016 budget. For tax years after 2015, the minimum tax can no longer be reduced by the dividend tax credit and the foreign tax credit.


Read an April 2016 report [PDF 49 KB] prepared by the KPMG member firm in Canada: 2016 Ontario Budget Bill Receives Royal Assent 

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