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eligible expenses are based on expenses that may be claimed in respect
of the federal tuition
tax credit (ITA s. 118.5(1)(a) and (d), but only for costs paid to
an educational institution in Canada, and including examination fees to
obtain a professional status, and licensing fees to be certified as a
credit is the lesser of $2,000 and 50% of the eligible expenses.
will be claimed on the 2021 tax return.
Proposed Business Tax Measures
make the Employee Health Tax (EHT) payroll exemption increase permanent.
EHT exemption is indexed to inflation every 5 years, with next adjustment
scheduled for 2024. This will be moved to January 1, 2029.
double the threshold payroll amount beyond which employers are required to
pay EHT instalments, to $1.2 million, starting in 2021.
The Ontario March 2020 Economic and Fiscal Update was
released on March 25, 2020.
Employer Health Tax (EHT) - temporary increase
in exemption from $490,000 to $1 million for 2020.
10% refundable Regional Opportunities Investment Tax Credit, available to
eligible businesses that construct, renovate or acquire qualifying commercial
and industrial buildings in designated regions of the province, providing up to
$45,000 savings in the year.
5 month interest and penalty-free period
for businesses to make payments for most provincially administered taxes.
Guaranteed Annual Income System (GAINS)
maximum payments doubled for 6 months beginning April 2020.
Ontario Student Assistance Program (OSAP)
- 6 months of loan and interest accrual relief (no loan payments March 30 to
September 30), in coordination with the federal
dividend tax credit rate reduced to 3.2863% of the taxable dividend
effective January 1, 2018. However, Bill 177 (link below) legislative
changes result in a rate of 3.1197%, which is what we are using in the
Ontario tax rate tables. The difference is due to the reduction in the
gross-up rate for 2018, to 16%.
The Apprenticeship Training Tax
Credit (ATTC) is being eliminated for employers with apprentices who
register in an apprenticeship program after November 14, 2017. This is
in conjunction with the announcement of the new Graduated Apprenticeship
Grant for Employers (GAGE).
The Ontario government announced revisions to both
eligible and non-eligible dividend rates. Another change is that the
Ontario surtax, starting in 2014, will be calculated before deducting dividend
tax credits. By doing so, all taxpayers get the same amount of dividend
tax credit. Previously, the surtax was applied after these tax credits
were deducted, thus increasing the tax credits for high income earners by as much as 56%.
It is planned to combine 3 refundable tax credits -
Ontario Sales Tax Credit (OSTC), Ontario Energy and Property Tax Credit (OEPTC)
and Northern Ontario Entergy Credit (NOEC) into the Ontario Trillium
Benefit (OTB). These payments would be combined, and paid out on a
Previously planned corporate tax reductions will reduce
the general corporate tax rate to 10% in 2013. See our tables of corporate