Ontario Bill 70 received first reading November 16, 2016.
The bill includes increases to the land transfer tax rates and a new Ontario Interactive Digital Media Tax Credit application deadline to qualify for product certification. The bill also repeals the Ontario Retirement Pension Plan Act (Strengthening Retirement Security for Ontarians), 2016 and related acts, as previously announced.
The bill is considered to be substantively enacted for purposes of IFRS and Accounting Standards for Private Enterprise as of November 16, 2016, the date it received first reading in the Ontario legislature (as Ontario has a majority government).
Land transfer tax rate increases
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.
New product certification deadline for media credit
The Ontario Interactive Digital Media Tax Credit is a refundable tax credit for qualifying expenditures related to creating, marketing and distributing eligible interactive digital media products. Previously, there was no application deadline to certify a products eligibility for the tax credit. Under this new bill, the application deadline will be the later of:
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Information is current to November 22, 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
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