List of Tax Changes Taking Effect on January 1, 2020
Backgrounder
List of Tax Changes Taking Effect on January 1, 2020
| Measure | What Happens as of January 1, 2020? | Announcement |
|---|---|---|
| Basic Personal Amount | The Basic Personal Amount is proposed to increase to $13,229 for 2020. This is the first step in the Government's proposal to increase the amount to $15,000 by 2023. Details about this measure and other consequential changes are in the backgrounder accompanying the December 9, 2019 news release. | News release of December 9, 2019 |
| Home Buyers' Plan | The Home Buyers' Plan (HBP) helps first-time home buyers save for a down payment by allowing them to withdraw up to $35,000 from a registered retirement savings plan to purchase or build a home without having to pay tax on the withdrawal. Beginning in 2020, individuals who experience a breakdown of a marriage or common-law partnership—in the year of making a withdrawal or in any of the four preceding calendar years—will be able to access the Home Buyers' Plan, even if they do not meet the first-time home buyer requirement. Further information about the HBP—including additional rules relating to the breakdown of a marriage or common-law partnership—is available on this Canada Revenue Agency web page. |
Budget 2019 |
| Permitting Additional Types of Annuities Under Registered Plans | To provide Canadians with greater flexibility in managing their retirement savings, it is proposed that two new types of annuities be permitted under the tax rules for certain registered plans:
|
Budget 2019 |
| Journalism—Personal Income Tax Credit for Digital Subscriptions | Individuals will be allowed to claim up to $500 in costs paid towards eligible digital subscriptions in a taxation year, for a maximum tax credit of $75 annually. This credit will be available in respect of eligible amounts paid after 2019 and before 2025. For details, see the Budget 2019 annex entitled Tax Measures: Supplementary Information. |
Budget 2019 |
| Journalism—Qualified Donee Status | Certain journalism organizations operating on a not-for-profit basis will be allowed to register under a new category of tax-exempt qualified donee. Canadians may claim the charitable donation tax credit (for individuals) or deduction for donations (for corporations) for donations to qualified donees. Qualified donees can also receive gifts from Canadian registered charities. This measure will apply as of January 1, 2020. For details, see the Budget 2019 annex entitled Tax Measures: Supplementary Information. |
Budget 2019 |
| Contributions to a Specified Multi-Employer Plan for Older Members | It is proposed to amend the tax rules to prohibit contributions to a Specified Multi-Employer Plan (SMEP) in respect of a member after the end of the year the member attains 71 years of age and to a defined benefit provision of a SMEP if the member is receiving a pension from the plan (except under a qualifying phased retirement program). The proposed changes will ensure that employers do not make pension contributions on behalf of older SMEP members in these situations from which they cannot benefit. This measure will apply in respect of SMEP contributions made pursuant to collective bargaining agreements entered into after 2019, in relation to contributions made after the date the agreement is entered into. For details, see the Budget 2019 annex entitled Tax Measures: Supplementary Information. |
Budget 2019 |
| Foreign Affiliates—Reporting Requirements | The information return deadline in respect of a taxpayer's foreign affiliates is accelerated from 15 months after year-end to 12 months after year-end for taxation years of a taxpayer that begin in 2020, and to 10 months after year-end for taxation years of a taxpayer that begin after 2020. | Budget 2018 announced the intention for this deadline to be six months after year-end. After consultation, it was changed to be as reflected. |
| Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) | The Multilateral Instrument (MLI) will reduce opportunities for tax avoidance by multinational enterprises. For details, see the following:
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Canada indicated its intention to participate in the development of the MLI in Budget 2016 |
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