2025 Federal Budget Commentary

We are pleased to share commentary on the 2025 federal budget.  This commentary does not originate from our office.  Our subscription to the commentary allows for us to distribute it to our clients.  We hope you find it useful.

Some highlights include:

A.  Personal Measures

• Automatic tax filings for low-income Canadians to commence for the 2025 tax year.
• A 5% credit for eligible personal support workers working for eligible health care establishments.

B.  Business Measures

• A variety of new and extended measures for accelerated CCA on asset acquisitions.
• An anti-avoidance measure to prevent tax deferrals related to refundable dividend tax where dividends are paid within a corporate group.
• Various modifications to tax incentives related to the clean economy.

C.  International Measures

• Revisions to the transfer pricing rules and requirements.

D.  Sales and Excise Measures

• Elimination of the underused housing tax.
• Removal of the luxury tax on vessels and aircraft (but not on vehicles).

E.  Other Measures

• Deferral of bare trust filing requirements until the 2026 tax year.
• Deferral of expanded filing requirements for non-profit organizations until the 2027 tax year.

F.  Previously Announced Measures

• Intention to proceed with previously announced measures, including the capital gains rollover on small business investments, making the Canada carbon rebate for small businesses tax-free, allowing charitable donations made in early 2025 to be claimed in 2024 and increasing the lifetime capital gains exemption limit to $1,250,000 effective in 2024.
• Confirming the cancellation of the proposed increase to the capital gains inclusion rate and the Canadian entrepreneurs’ incentive.

Click Here to View Full Commentary on the 2025 Federal Budget