July 03, 2024
Legislative developments from April 1 to June 30, 2024, 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, received royal assent on June 20, 2024. Bill C-59 includes legislation for many key tax measures, including:
For more information, see our Tax Insights:
Status: Bill C-59 is considered substantively enacted for Canadian GAAP as at May 28, 2024, and enacted for US GAAP as at June 20, 2024 (see Table 1 below for Bill C-59’s status). However, note that the coming into force of the Digital Services Tax Act will require the additional step of an order of the Governor in Council, the timing of which is uncertain. However, note that the coming into force of the DSTA required the additional step of an order of the Governor in Council; an Order in Council dated June 28, 2024 fixes that same day as the coming into force of the DSTA.*
* The text in bold was updated post-publication to reflect that the DSTA came into force on June 28, 2024; this information was not available at the time of publication, because the Order in Council had not yet been posted on the Orders in Council website.
The federal government’s April 16, 2024 budget does not change general or manufacturing and processing (M&P) corporate income tax rates. Key federal budget tax measures:
For more information, see our Tax Insights “2024 Federal budget: Supporting housing, raising taxesOpens in a new window.”
Status: As at June 30, 2024, these key federal budget tax measures have not 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.
Federal Bill C-69, An Act to implement certain provisions of the budget tabled in Parliament on April 16, 2024, which includes the Notice of Ways and Means Motion tabled on April 30, 2024, was introduced for first reading on May 2, 2024 and received royal assent on June 20, 2024. Bill C-69 does not implement any of the key 2024 federal budget measures discussed above, but does:
Status: Bill C-69 is considered substantively enacted for Canadian GAAP as at June 19, 2024, and enacted for US GAAP as at June 20, 2024 (see Table 1 below for Bill C-69’s status).
The following province and territory introduced budgets from April 1 to June 30, 2024. None of these budgets announced changes to general and M&P corporate income tax rates. Visit www.pwc.com/ca/budgetOpens in a new window for key changes respecting:
Status: As at June 30, 2024, Manitoba has tabled legislation to implement its budget measures, but none of the measures relate to general corporate income tax changes. See Table 1 below for status of legislation.
Quebec’s Ministère des Finances released the following Information Bulletins:
The Information Bulletins state Quebec’s position on whether it intends to harmonize with various federal measures, including those announced in the federal government’s 2023 Fall Economic Statement (November 21, 2023) and 2024 budget (April 16, 2023), and certain measures included in federal Bill C-59 (see Table 1).
Status: As at June 30, 2024, the measures noted in the above Information Bulletins 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.
There were no significant updates relating to the accounting for income tax.
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 April 1 to June 30, 2024.
|
Legislation |
Recognized for accounting purposes |
|||
---|---|---|---|---|---|
|
Bill # |
Bill name |
Canada |
US GAAP |
|
Federal |
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 |
May 28/241 |
June 20/24 |
|
C-69 |
An Act to implement certain provisions of the budget tabled in Parliament on April 16, 2024 |
June 19/241 |
June 20/24 |
||
Alberta |
10 |
Financial Statutes Amendment Act, 2024 |
March 12/24 |
May 16/24 |
|
British Columbia |
3 |
Budget Measures Implementation Act, 2024 |
February 22/24 |
April 25/24 |
|
Manitoba |
37 |
The Budget Implementation and Tax Statutes Amendment Act, 2024 |
May 6, 2024 |
Not as at June 30/24 |
|
Nova Scotia |
419 |
Financial Measures (2024) Act |
March 5/24 |
April 5/24 |
|
Ontario |
180 |
An Act to implement Budget measures and to enact and amend various statutes |
March 26/24 |
May 16/24 |
|
Québec |
49 |
An Act to give effect to fiscal measures announced in the Budget Speech delivered on 21 March 2023 and to certain other measures |
February 8/24 |
May 7/24 |
|
Saskatchewan |
158 |
The Saskatchewan Commercial Innovation Incentive (Patent Box) Amendment Act, 2024 |
March 27/24 |
May 8/24 |
|
|
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 April 1 to June 30, 2024, except for the reduced federal rates discussed in note 1 below (see bolded text).
|
|
Effective date |
Rate |
Recognized for accounting purposes |
Bill # |
|
---|---|---|---|---|---|---|
|
|
|
|
Canada |
US GAAP |
|
Federal |
General and manufacturing and processing (M&P) |
Before January 1/21 |
15%1 |
Before January 1/21 |
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 1/21 |
8% |
Before January 1/21 |
N/A |
|
British Columbia |
General and M&P |
Before January 1/21 |
12% |
Before January 1/21 |
N/A |
|
Manitoba |
General and M&P |
Before January 1/21 |
12% |
Before January 1/21 |
N/A |
|
New Brunswick |
General and M&P |
Before January 1/21 |
14% |
Before January 1/21 |
N/A |
|
Newfoundland and Labrador |
General and M&P |
Before January 1/21 |
15% |
Before January 1/21 |
N/A |
|
Northwest Territories |
General and M&P |
Before January 1/21 |
11.5% |
Before January 1/21 |
N/A |
|
Nova Scotia |
General and M&P |
Before January 1/21 |
14% |
Before January 1/21 |
N/A |
|
Nunavut |
General and M&P |
Before January 1/21 |
12% |
Before January 1/21 |
N/A |
|
Ontario |
General |
Before January 1/21 |
11.5% |
Before January 1/21 |
N/A |
|
M&P |
10% |
|||||
Corporate Minimum Tax (CMT) |
2.7% |
|||||
Prince Edward Island |
General and M&P |
Before January 1/21 |
16% |
Before January 1/21 |
N/A |
|
Québec |
General and M&P |
Before January 1/21 |
11.5% |
Before January 1/21 |
N/A |
|
SIFT Distribution Tax |
Varies5 |
|||||
Saskatchewan |
General |
Before January 1/21 |
12% |
Before January 1/21 |
N/A |
|
M&P |
10% |
|||||
Yukon |
General |
Before January 1/21 |
12% |
Before January 1/21 |
N/A |
|
M&P |
2.5% |
|||||
|