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new Ontario Made Manufacturing 10% Investment Tax Credit for CCPCs that
make qualifying investments and that have a permanent establishment in
current gas tax and fuel tax cuts extended until December 31, 2023
legislation will be introduced to expand the Guaranteed Annual Income
System (GAINS) program starting in July 2024, to see about 100,000
additional seniors be eligible for the program
proposal to adjust the GAINS benefit annually so that it increases with
as proposed in the 2022 Ontario Economic Outlook and Fiscal Review,
extending the phase-out range for Ontario's small business corporate income
tax rate to between $10 million and $50 million of taxable capital employed
in Canada, mirroring the federal government change.
proposal to set a single 12% basic tax rate on wine and wine coolers sold
in off-site winery retail stores, including wine boutiques, coming into
effect on July 1, 2023. This would replace the four separate basic tax rates
that currently apply.
Requirement for a literary work to be published in an edition of
at least 500 copies of a bound book, which was temporarily removed for
the 2020 and 2021 tax years, will be permanently removed for the 2022
and subsequent tax years.
Brownfields Financial Tax Incentive Program (BFTIP) - Extend the
period for matching provincial education tax assistance from 3 to 6 years
for business developments and 10 years for residential developments,
streamline administrative processes.
On-farm business property tax subclass providing reduced tax rate -
increase the assessment threshold from $50,000 to $100,000. While the
province will apply a reduced business education tax rate to the increased
threshold, municipalities will have the option to maintain the current
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