What’s new

This document has been updated on October 24th, 2017 and reflects the state of the Law,

including draft amendments, at that date.

  • Section 1 - Tax System

    – Since 2017, for Quebec purposes, personal tax credits are calculated on the basis of the rate applicable to the first income bracket, that is 16%, rather than on the basis of the rate applicable to the second income bracket (20%). A corresponding increase in the amounts used to calculate the credits has been introduced to maintain the credit’s value.
    – The CRA plans to amend its Voluntary Disclosure Program as of January 1, 2018 in order, in particular, to impose additional requirements on applicants.

  • Section 2 – Individuals and Families

    Federal

    – On July 18, 2017, the Government of Canada proposed new measures to limit family income splitting. The proposed measures would apply as of January 1, 2018.
    – The tax credits for fitness and for artistic activities for children are eliminated as of 2017.
    – The public transit tax credit is eliminated as of July 1, 2017.
    – The CCB will be indexed to the cost of living for benefits paid as of July 1, 2018, two years earlier than anticipated.

    Quebec

    – The health contribution is completely eliminated since 2017.
    – The RénoVert tax credit eligibility period is extended by one year.
    – A temporary tax credit is offered for the upgrading of residential waste water treatment systems.
    – A tax credit is offred for the restoration of secondary residences damaged by flooding during the April 5 to May 16, 2017 period.
    – Magdelen Islands is now consireded as a remote area for purposes of the deduction for residents of remote areas.
    – The tax credit for charitable donations is increased since 2017.

    Ontario

    – In Ontario, the tax credit for children’s activities is eliminated as of 2017.

  • Section 3 - Education

    – For federal purposes, the education and textbook tax credits have been eliminated since 2017.
    – For federal and Quebec purposes, since 2017, the eligibility criteria for the tuition tax credit are expanded to include professional skills courses that are not at a post-secondary level.
    – In New Brunswick, tuition and eduction tax credits have been eliminated since 2017.
    – In Ontario, the education and tuition tax credits are eliminated for courses starting after September 4, 2017.

  • Section 4 - Health, Seniors and Caregivers

    – Since March 22, 2017, nurses practionners can certify eligibility of handicapped persons for the disability tax credit.
    – Since 2017, individuals who require medical intervention in order to conceive a child are eligible to claim the same expenses that would generally be eligible for individuals on account of medical infertility.
    – For federal purposes, since 2017, the new Canada caregiver credit replaces the credits for disabled dependents, caregivers and family caregivers.
    – In Quebec, the age required to be eligible for the age amount tax credit is retroactively maintained at 65 years as of the 2016 taxation year.
    – In Ontario, since July 1, 2017, seniors can benefit from a public transit tax credit.
    – The Ontario healthy homes renovation tax credit is eliminated since January 1, 2017.

  • Section 5 - Employees

    – The home relocation loan deduction will be abolished as of 2018.
    – The Working Income Tax Benefit will be enhanced as of 2019. Details on this enhancement will be provided in the 2018 federal budget.
    – In Quebec, the eligibility age for the tax credit for experienced workers is reduced to 63 years in 2017 and it will be reduced to 62 years in 2018.
    – In Quebec, the stock option deduction rate increases from 25% to 50% for options awarded after February 21, 2017 with respect to the shares of publicly traded corporations having a significant presence in Quebec.

  • Section 6 - Businesses

    – For a taxation year beginning after March 21, 2017, 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 New Brunswick, since January 1, 2017, the credit rate applicable to ordinary dividends is reduced to 3.245%1, while the credit rate applicable to eligible dividends increased to 14%2.
    ___________________________________________________________________________
    1 3,63% in 2016.
    2 13,5% in 2016.

  • Section 8 - Retirement Assistance Programs

    – Implementation of the Ontario Retirement Pension Plan, which was to start in January 2017, has been cancelled given the improvements in the Canada Pension Plan.

  • Section 12 - Social Programs and Benefits

    – As of 2019, the Canada Pension Plan will be gradually enhanced so that benefits will replace one third of eligible average work earnings.
    – Since 2017, a lower HSF contribution rate applies to all SMEs.
    – In Ontario, the cost of prescription medication for children and youth aged 24 and under will be covered by the Ontario Health Insurance Program + as of 2018.
    – Since January 1, 2017, the Quebec health contribution has been completely abolished.