Canada released its 2021 Budget on April 19th and it includes several key items that may be of relevance to you.
- No changes to the federal personal or corporate tax rates, capital gains inclusion rate, no wealth tax and no comprehensive tax reform;
- Canada Emergency Wage Subsidy, Canada Emergency Rent Subsidy and lockdown support extended until September 25th;
- Introduction of the Canada Recovery Hiring Program;
- New interest expense limitations for certain Canadian corporations starting in 2023 and anti-hybrid rules for Canadian multi-nationals;
- Introduction of the Digital Services Tax, effective January 1, 2022; and
- New support for small business innovation.
The government also included a commitment for early learning and childcare programs and additional funding for the Black Entrepreneurship Program. We expect more details to be made available about the programs proposed in the Budget in the coming days.
If you have any questions please do not hesitate to contact us.