We are pleased to share a summary on the 2025 federal budget. This summary does not originate from our office but rather from CPA Quebec. 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 for full summary on the 2025 Federal Budget