  Tax changes in DT Max (2015) |
TThe following is a summary of the various new tax measures that
required modifications in DT Max and that relate to tax year
2015 (some new tax measures do not require any modifications
in DT Max.) Most of these new tax measures were introduced in the
2015 budgets (some of them were introduced in prior budgets, in
press releases or in information bulletins.) Also, please note
that, unless otherwise provided, these proposed new tax measures
should come into force by the time the 2015 returns are produced.
Finally, please note that we have also included changes that, while
not representing new tax measures, are changes of an administrative
nature that required modifications in DT Max.
Federal
Newfoundland and Labrador
Prince Edward Island
Nova Scotia
New Brunswick
Quebec
Ontario
Manitoba
Saskatchewan
Alberta
British Columbia
Yukon
Northwest Territories
Nunavut
Federal
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New Tax Measures:
-
The Lifetime Capital Gain Exemption (CGE) amount
regarding the disposition of qualified farm or fishing property,
after April 20, 2015, has been increased to $1,000,000 for those
kinds of properties, whereas it is capped at $813,600 for the
period between January 1 and April 20, 2015 inclusively.
Furthermore, the CGE amount regarding the disposition of qualified
small business corporation shares is $813,600 for the whole
taxation year 2015 which is indexed for inflation.
-
The children's fitness tax credit will become refundable
starting tax year 2015.
-
The requirements for reporting foreign assets have been
streamlined. The budget proposes to simplify the reporting of
foreign assets on form T1135, for tax years beginning after 2014.
The form under development by the CRA will allow taxpayers who must
report a total cost of less than $250,000 regarding specified
foreign property to report the assets throughout the year under a
new simplified reporting system. However, the current reporting
requirements will continue to apply to taxpayers with specified
foreign property with a total cost of $250,000 or more at any time
during the year. (not implemented in the planner
version)
-
The basic limit for childcare expenses has increased to $ 1,000
for each child.
-
The amount for children under 18 years of age has been
eliminated and replaced by the enhanced universal child care
benefit. Line 367 is now used for the family caregiver amount for
children under 18 years of age.(not implemented in the planner
version)
Newfoundland and Labrador
-
New Tax Measures:
-
The 2015 budget proposes to add two additional tax brackets for
the residents of Newfoundland and Labrador, a fourth bracket for
incomes between $125,000 and $175,000 with a rate of 13.8%, and a
fifth bracket for incomes in excess of $175,000 with an applicable
rate of 14.3%.
-
The labour-sponsored venture capital tax credit is eliminated
for tax year 2015 and later.(not implemented in the planner
version)
Prince Edward Island
-
New Tax Measures:
-
Among the changes proposed to the Prince Edward Island Income
Tax Act, three changes will affect the Low-Income Tax Reduction
program: (not implemented in the planner version)
-
a) The basic tax credit and the spousal amount (or the spousal
amount equivalent) will increase by $ 50, going from $ 250 to $
300, just like the dependant's amount which will increase from $
200 to $ 250.
b) A new $ 250 tax credit will be granted to seniors aged 65 and
over.
c) The income threshold in order to benefit from the total
amount of credits will increase from $ 15,000/year to $ 17,000/year
(the value of each credit will decrease by 5% for each dollar
earned over $ 17,000).
These changes will apply starting in early 2015. Residents of
Prince Edward Island will therefore benefit from these savings when
they submit their tax returns next April.
Nova Scotia
-
New Tax Measures:
-
The Nova Scotia volunteer firefighters and ground search and
rescue tax credit has been maintained for 2015.
-
The Nova Scotia budget proposes the elimination of the
Healthy Living Tax Credit of $500 for each child under the
age of 18 enrolled in registered sport or recreational activities,
effective January 1, 2015.
-
Furthermore, the rate for the dividend tax credit on
non-eligible dividends will be decreased from 5.87% to 3.5%
effective January 1, 2015.
New Brunswick
-
New Tax Measures:
-
The 2015 budget proposes to add two additional tax brackets
pertaining to the residents of New Brunswick with the highest
income. A taxation rate of 21% for incomes between $150,000 and
$250,000 and a rate of 25.75% for incomes in excess of
$250,000.
-
Furthermore, for dividends received on or after January 1, 2015,
the Dividend Tax Credit will be decreased from 5.3% to 4% to match
the new small-business corporate tax rate that was previously
announced in October 2014.
-
A new Seniors' Home Renovation Tax Credit will be
introduced, effective for the 2015 New Brunswick budget. More
details will be made available in the future. (not implemented
in the planner version)
-
The minister also proposed to enhance the New Brunswick Small
Business Investor Tax Credit for individuals. Effective for
investments made after March 31, 2015, the minister proposes to
increase the current tax credit rate from 30% to 50%, thereby
increasing the maximum tax credit from $75,000 to $125,000.
-
A New Brunswick seniors' home renovation tax credit will be
implemented and is effective for tax year 2015.(not implemented
in the planner version)
Quebec
-
New Tax Measures:
-
The Quebec Ministry of Finance announced an enhancement of the
tax credit for experienced workers, the maximum amount of eligible
work income on which the tax credit is calculated, currently set at
$4,000 was $3,000 in 2014 for all workers age 65. This tax credit
will be reducible based on work income.
-
For 2015, the contribution rate to the QPP increases from 10.20%
to 10.50%. This rate corresponds to a contribution rate of 5.25%
for the employee and 5.25% for the employer. The rate of this
contribution will increase by 0.15% per year to reach 10.80% in
2017.
-
The rate of the tax credit for home support for seniors
increases from 32% to 33% for 2015.
-
The amount awarded to the caregiver for an elderly spouse unable
to live alone increases from $850 to $925 for 2015.
-
The limit on eligible expenses for the refundable tax credit for
youth activities increased from $200 to $300. The Maximum credit
will be $60 for 2015.
-
A full-time student will not be eligible for the work premium in
2015, unless he/she is the father/mother of a child with whom
he/she resides at the end of the year.
-
The Lifetime Capital Gain Exemption (CGE) for qualified
farm or fishing property, after April 2015, will be increased to 1
million for these types of properties.
-
The rate for the non-refundable tax credit for union dues,
professional or other will be reduced from 20% to 10% as of tax
year 2015.
-
The Quebec Minister of Finance has announced in its
information bulletin 2014-12 of December 19, 2014, that the limits
for the purposes of calculating the refundable tax credit for
childcare expenses will be increased following the announcement of
the Prime Minister of Canada in October 2014. Except for children
under 7 years old for whom the maximum amount stays at $ 9,000, the
other amounts will be enhanced as follows: from $4 000 to $5 000
for children 7 to 16 years of age, and from $10 000 to $11 000 for
children eligible for the Disability Tax Credit.
-
Quebec Additional Subsidized Childcare Contribution. Since April
22, 2015, subsidized childcare fees include a basic contribution as
well as an additional contribution, which will be paid to Revenu
Québec when you file your 2015 income tax return. You will continue
to pay the basic contribution to your childcare service provider.
The additional subsidized childcare contribution amount will be
adjusted to your family income. For more information on this topic,
please consult the Revenu Québec website
-
The following changes apply to the solidarity tax credit:(not
implemented in the planner version)
-
a) For the payment period from July 2016 to June 2017, the
solidarity tax credit is calculated according to the taxpayer's
situation on December 31, 2015. It is no longer necessary to notify
RQ of a change in your situation that occurred after January 1,
2016.
b) To benefit from the housing component, the owner of an
eligible dwelling must enter in Schedule D the roll number or
identification number (the "numéro matricule" or "numéro
d'identification") shown on the owner's (or his/her spouse's)
municipal tax bill, whereas the tenant or subtenant of an eligible
dwelling must enter the dwelling number that is shown on the RL-31
slip issued to the tenant or to his/her spouse by the owner of the
building in which the dwelling was located.
c) Starting July 2016, the frequency of payments will depend on
the amount of the credit determined for the payment period from
July 2016 to June 2017. Accordingly, if the amount determined for
the payment period is $800 or more, the taxpayer will receive
monthly payments of the tax credit for each month of the payment
period; more than $240 but less than $800, the taxpayer will
receive quarterly payments of the tax credit in July, October,
January and April; $240 or less, the taxpayer will receive a single
payment of the tax credit in July.
d) New indexing period: As of July 2016, the parameters of the
STC will be indexed on July 1 each year, instead of January 1, and
will remain unchanged for the payment period, that is, from July of
a particular year to June of the following year.
Ontario
-
New Tax Measures:
-
Apprenticeship Training Tax Credit (ATTC): The ATTC rate has
decreased for apprenticeship programs that started after April 23,
2015, going from 35% down to 25% for businesses with salaries or
wages of $ 600,000 or higher, and decreasing from 45% to 30% for
small businesses with salaries or wages of less than $ 400,000.
Thus, the maximum annual credit decreases from $ 10,000 to $ 5,000
for each apprentice who started an apprenticeship program after
April 23, 2015. In addition, the eligibility period of an
apprenticeship program for the first 48 months is reduced to the
first 36 months.(not implemented in the planner version)
Manitoba
-
New Tax Measures:
-
Regarding the Volunteer Firefighter's and Search and Rescue
Volunteers' Tax Credit, starting in 2015, Manitobans who perform at
least 200 volunteer hours related to firefighting or search and
rescue efforts can claim a non-refundable income tax credit with a
maximum benefit of $324.
-
Pertaining to the Primary Caregiver Tax Credit, beginning in
2015, the maximum annual amount has been increased from $1,275 to
$1,400 for each person requiring care.
Saskatchewan
-
New Tax Measures:
-
The Graduate Retention Program will transition in 2015 from a
seven-year refundable tax credit to a 10-year non-refundable tax
credit. The maximum rebate of $20,000 of tuition costs will remain
unchanged. (not implemented in the planner version)
-
The active families benefit of $150 per child will begin to be
income tested in 2015 and will only be available to those families
with a combined net annual income lower than $60,000. (not
implemented in the planner version)
Alberta
-
New Tax Measures:
-
The existing Charitable Donations Tax Credit rate will be
reduced from 21% to 12.75% for total donations over $200.
-
A new Health Care Contribution Levy was introduced effective
July 1, 2015. This is a progressive levy compared to the previous
Alberta Health Care premium, which was eliminated in 2008. This
contribution will apply to individuals with taxable income in
excess of $50,000. The maximum amount will be $1,000 for Alberta
residents with taxable income over $130,800. Individuals with
taxable income below $50,000 a year will not be subjected to the
Health Care Contribution Levy. (not implemented in the planner
version)
British Columbia
-
New Tax Measures:
-
The BC Tax Reduction Credit is enhanced. Effective for the 2015
taxation year, the BC tax reduction credit is increased from $412
to $432 and the credit phase-out threshold is increased from
$18,327 to $19,000. The credit phase-out rate is also increased
from 3.2% to 3.5% of the net income.
-
The Children's Fitness Equipment Credit is introduced.
This new non-refundable tax credit allows a parent to claim an
additional credit in respect of fitness equipment purchased for the
child. The new credit is calculated as 50% of the existing BC
children's fitness credit amount claimed.
-
The BC Education Coaching Tax Credit has been introduced.
This new non-refundable tax credit is effective for the 2015, 2016
and 2017 taxation years. The tax credit in the amount of $500 will
be available to teachers and teaching assistants who carry out at
least 10 hours of extracurricular coaching activity in the tax
year.
Yukon
-
New Tax Measures:
-
Yukon has proposed new tax rates for the four existing tax
brackets and a new fifth tax bracket for taxable income over
$500,000. The changes are as follows: the first rate is decreased
from 7.04% to 6.4% for incomes between $0 and $44,701. The second
rate is decreased from 9.68% to 9.0% for incomes between $44,701
and $89,401. The third rate is decreased from 12.01% to 10.9% for
incomes between $89,401 and $138,586. The fourth rate is decreased
from 13.40% to 12.8% for incomes between $138,586 and $500,000. The
last new rate of 15% is for income amounts over $500,000.
-
Furthermore, the 5% surtax on Yukon tax over $6,000 has been
eliminated.
-
The Children's fitness tax credit will be refundable effective
as of the 2015 taxation year. (not implemented in the planner
version)
-
The rate for the tax credit for non-eligible dividends has been
increased to 3.14%
Northwest Territories
Nunavut
March 2, 2016
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