Section 1 - Tax System
- Since January 1, 2017, for Quebec purposes, the tax rate applicable to the first income bracket, is reduced from 16% to 15% and the non-refundable tax credits are calculated using that rate. There is a a corresponding increase in the amounts used to calculate personal tax credits to maintain their value.
- In Ontario, new tax rates and brackets are applicable and the two-tiered surtax is abolished since January 1, 2018.
- Since March 1, 2018, there are two programs under the Voluntary Disclosure Program (Limited and General) and additional requirements are imposed on applicants.
Section 2 – Individuals and Families
- Since 2018, new measures limit family income splitting by extending application of the tax on split income to some income received by individuals aged 18 and over.
- Since 2017, an annual supplement of $100 for the purchase of school supplies is added to the CAP for each eligible school-aged child.
- Since 2018, the ceilings applicable for purposes of the childcare tax credit for children under the age of 7 and disabled children are increased and all ceilings applicable to this tax credit will be indexed annually as of 2019.
- Since 2018, a non-refundable tax credit for a maximum amount of $750 is offered for first-time home buyers.
- The RénoVert tax credit eligibility period is extended by one year.
- The eligibility period for the tax credit for the fisrt large culture donation is extended by five years.
- Since 2018, the tax shield refundable tax credit is enhanced.
- Since 2018, the tax credit rate applicable to charitable donations in excess of $200 is increased from 11.16% to 17.5%.
Section 4 - Health, Seniors and Caregivers
- Since 2018, certain expenses incurred in respect of an animal specially trained to perform tasks for a patient with a severe mental impairment are eligible for the medical expense tax credit.
- Since 2018, new equipments qualifies for the tax credit for the purchase or rental of equipment designed to help seniors live independently longer.
- Since 2018, individuals who regularly and consistently help an eligible handicapped relative but does not house or co-reside with the relative, can benefit from the tax credit for informal caregivers.
- Since 2018, the maximum amount for volunteer respite services is increased and the number of hours of services provided to benefit from the credit is more flexible.
Section 5 - Employees
- Since 2018, the threshold to declare a benefit to employees for social events provided by the employer is increased from $100 to $150 per person.
- As of 2019, the full amount of non-accountable allowances paid to elected officers will be taxable.
- As of 2019, the working income tax benefit will be renamed the “Canada Workers Benefit” and will be increased.
- Since 2018, the work premium for couples without children is progressively increased until 2022. Additionally, Revenu Quebec will automatically pay amounts to which individuals are entitled.
- Since 2018, the eligibility age for the tax credit for experienced workers is reduced to 61 years and the credit is enhanced.
Section 6 - Businesses
- In Quebec, the maximum expenses that qualify for the tax credit for on-the-job training periods beginning since March 28, 2018 are increased and the increaed and enhanced rates now apply for the hiring of Aboriginal interns and internships completed in remote resource regions
- The Ontario Apprenticeship Training Tax Credit has been abolished for internships beginning after November 14, 2017.
- For taxation years beginning after March 21, 2017 (i.e. generally the 2018 taxation year for individuals), the election to exclude work in process from taxable income earned by individuals in certain professional occupations is abolished.
Section 7 - Investments
- The federal mineral exploration tax credit for flow-through shares has been extended.
- In Quebec, the tax credit for the acquisition of shares of Capital régional et coopératif Desjardins is reduced from 40% to 35% since March 1, 2018. Additionally, a temporary credit has been introduced for the conversion of this company’s shares into a new class of shares.
- In Quebec, the increased rate of the tax credit in respect of the acquisition of shares in Fondaction is extended for a three-year period until May 31, 2021.
- In Quebec, the tax credit rates applicable to eligible and ordinary dividends are reduced since March 28, 2018 and will be reduced annually until 2021, which will increase the tax rate applicable to dividends.
- In Ontario and New Brunswick the credit rate applicable to ordinary dividends is reduced since January 1, 2018 and will be reduced again in 2019.
Section 8 - Retirement Assistance Programs
- As of 2019, annuitants and holders of a registered plan could be subject to tax for a benefit equivalent to 100% of the investment management fees paid from funds held outside the registered plan.
Section 12 - Social Programs and Benefits
- As of 2019, the CPP and QPP will be gradually enhanced so that benefits will replace one third of eligible average work earnings.
- In Quebec, since 2018, the HSF contribution rate is reduced and the payroll threshold used to determine eligibility to a reduced contribution rate is increased .
- In Ontario, the cost of prescription medication for indiviudals aged 65 and over will be covered by the Ontario Health Insurance Program + as of August 2019.
This document has been updated on August 31st, 2018 and reflects the state of the Law, including draft amendments, at that date.