January 03, 2024
Legislative developments from October 1 to December 31, 2023, that affect income taxes, are outlined below.
Federal Bill C-59, An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023 and certain provisions of the budget tabled in Parliament on March 28, 2023, which includes the Notice of Ways and Means Motion tabled on November 28, 2023, received first reading on November 30, 2023. Key tax measures in Bill C-59:
For more information, see our Tax Insights:
Status: As at December 31, 2023, Bill C-59 is not considered substantively enacted for Canadian GAAP or enacted for US GAAP.
On November 21, 2023, the Deputy Prime Minister and Minister of Finance, Chrystia Freeland, presented the 2023 federal Fall Economic Statement (economic statement). Key tax measures contained in the economic statement include:
For more information, see our Tax Insights:
Status: As at December 31, 2023:
On December 20, 2023, the Department of Finance released draft legislative proposals to implement:
Status: As at December 31, 2023, the draft legislative proposals have not yet been tabled as a bill in the House of Commons and therefore are not considered substantively enacted for Canadian GAAP or enacted for US GAAP.
On November 1, 2023, the Canada Revenue Agency designated its first set of transactions for the purposes of the “notifiable transactions” regime (which are part of Canada’s enhanced mandatory disclosure rules that were enacted by federal Bill C-47 [see Table 1]). Effective November 1, 2023, “designated” transactions are those relating to:
See our Tax Insights “Canada Revenue Agency officially designates first notifiable transactionsOpens in a new window” for more information.
Status: The requirement for taxpayers, advisers and promoters to file a prescribed information return to report a transaction or series of transactions that is the same as, or substantially similar to, these designated transactions or series of transactions, is effective November 1, 2023.
On November 7, 2023, Quebec’s Ministère des Finances released Information Bulletin 2023-6 “Fiscal measures announced as part of the presentation of the Update on Québec’s Economic and Financial Situation.” Key tax measures in Information Bulletin 2023-6:
See our Tax Insights “Update on Québec’s Economic and Financial SituationOpens in a new window” for more information.
Status: As at December 31, 2023, the measures implemented by Information Bulletin 2023-6 have not been tabled as a bill in the National Assembly of Québec and therefore are not considered substantively enacted for Canadian GAAP or enacted for US GAAP.
On December 19, 2023, Quebec’s Ministère des Finances released Information Bulletin 2023-7 “Changes to various fiscal measures and harmonization with certain federal fiscal measures.” Information Bulletin 2023-7 includes measures that:
Status: As at December 31, 2023, the measures implemented by Information Bulletin 2023-7 have not been tabled as a bill in the National Assembly of Québec and therefore are not considered substantively enacted for Canadian GAAP or enacted for US GAAP.
On December 14, 2023, the US Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), Income Taxes (Topic 740): Improvements to Income Tax Disclosures (2023-09), that makes amendments to enhance US GAAP income tax disclosures in the following areas:
The ASU also contains certain other amendments to improve income tax disclosures. The amendments generally apply to all entities that are subject to income taxes, with some exceptions for certain amendments. The standard is effective for annual periods beginning after:
The new guidance will be applied prospectively with the option to apply retrospectively; early adoption is permitted. For more information, see our In depth “FASB issues guidance on income tax disclosuresOpens in a new window.”
Table 1 lists key bills that include corporate income tax rate changes or other income tax changes (e.g. for research and development) that were:
Table 1: Federal and provincial/territorial bills
Bolded rows indicate a change in status from October 1 to December 31, 2023.
|
Legislation |
Recognized for accounting purposes |
||
---|---|---|---|---|
|
Bill # |
Bill name |
Canada |
US GAAP |
Federal |
C-47 |
An Act to implement certain provisions of the budget tabled in Parliament on March 28, 2023 |
June 8/231 |
June 22/23 |
C-59 |
An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023 and certain provisions of the budget tabled in Parliament on March 28, 2023 |
Not as at December 31/231 |
||
Alberta |
10 |
Financial Statutes Amendment Act, 2023 |
March 9/23 |
March 28/23 |
4 |
Tax Statutes Amendment Act, 2023 |
November 1/23 |
December 7/23 |
|
British Columbia |
10 |
Budget Measures Implementation Act, 2023 |
February 28/23 |
May 11/23 |
Manitoba |
14 |
The Budget Implementation and Tax Statutes Amendment Act, 2023 |
March 10/23 |
April 3/23 |
Newfoundland and Labrador |
38 |
An Act to Amend the Revenue Administration Act and an Act to Amend the Income Tax Act, 2000 |
April 25/23 |
May 25/23 |
Nova Scotia |
339 |
Financial Measures (Fall 2023) Act |
October 13/23 |
November 9/23 |
Ontario |
85 |
An Act to implement Budget measures and to amend various statutes |
March 23/23 |
May 18/23 |
146 |
Building a Strong Ontario Together Act (Budget Measures), 2023 |
November 2/23 |
December 4/23 |
|
Québec |
6 |
An Act to give effect to fiscal measures announced in the Budget Speech delivered on 22 March 2022 and to certain other measures |
December 9/22 |
March 15/23 |
27 |
An Act to amend the Taxation Act, the Act respecting the Québec sales tax and other provisions |
May 30/23 |
September 26/23 |
|
Saskatchewan |
128 |
The Mineral Resources Amendment Act, 2023 |
March 27/23 |
May 17/23 |
133 |
An Act to Amend The Income Tax Act, 2000 |
April 5/23 |
||
|
The following information excludes Canadian-controlled private corporation small business rates and thresholds.
Table 2: Corporate income tax rates—accounting status
There were no changes in status from October 1 to December 31, 2023.
|
|
Effective date |
Rate |
Recognized for accounting purposes |
Bill # |
|
---|---|---|---|---|---|---|
|
|
|
|
Canada |
US GAAP |
|
Federal |
General and manufacturing and processing (M&P) |
Before January 1/20 |
15%1 |
Before January 1/20 |
N/A |
|
Provincial SIFT tax factor/rate2 |
Varies2 |
|||||
Additional tax on banks and life insurers |
For taxation years ending after April 7, 20223 |
1.5% |
December 8/224 |
December 15/22 |
C-32 |
|
Alberta |
General and M&P |
Before January 1/20 |
11% |
Before January 1/20 |
N/A |
|
January 1/20 |
10% |
|||||
July 1/20 |
8% |
October 20/20 |
December 9/20 |
35 |
||
January 1/21 |
9% |
Before January 1/20 |
N/A |
|||
8% |
October 20/20 |
December 9/20 |
35 |
|||
January 1/22 |
8% |
Before January 1/20 |
N/A |
|||
British Columbia |
General and M&P |
Before January 1/20 |
12% |
Before January 1/20 |
N/A |
|
Manitoba |
General and M&P |
Before January 1/20 |
12% |
Before January 1/20 |
N/A |
|
New Brunswick |
General and M&P |
Before January 1/20 |
14% |
Before January 1/20 |
N/A |
|
Newfoundland and Labrador |
General and M&P |
Before January 1/20 |
15% |
Before January 1/20 |
N/A |
|
Northwest Territories |
General and M&P |
Before January 1/20 |
11.5% |
Before January 1/20 |
N/A |
|
Nova Scotia |
General and M&P |
Before April 1/20 |
16% |
Before January 1/20 |
N/A |
|
April 1/20 |
14% |
March 3/20 |
March 10/20 |
243 |
||
Nunavut |
General and M&P |
Before January 1/20 |
12% |
Before January 1/20 |
N/A |
|
Ontario |
General |
Before January 1/20 |
11.5% |
Before January 1/20 |
N/A |
|
M&P |
10% |
|||||
Corporate Minimum Tax (CMT) |
2.7% |
|||||
Prince Edward Island |
General and M&P |
Before January 1/20 |
16% |
Before January 1/20 |
N/A |
|
Québec |
General and M&P |
Before January 1/20 |
11.6% |
Before January 1/20 |
N/A |
|
January 1/20 |
11.5% |
|||||
SIFT Distribution Tax |
Before January 1/20 |
Varies5 |
Before January 1/20 |
N/A |
||
Saskatchewan |
General |
Before January 1/20 |
12% |
Before January 1/20 |
N/A |
|
M&P |
10% |
|||||
Yukon |
General |
Before January 1/20 |
12% |
Before January 1/20 |
N/A |
|
M&P |
2.5% |
|||||
|