One bill enacts measures from the province’s budget, the other introduces a new LNG tax credit
Two British Columbia bills recently received Royal Asset. Bill 5, the British Columbia budget implementation bill, received third reading on April 9, 2019 and Royal Assent on April 11, 2019. The British Columbia natural gas tax credit bill also received Royal Assent on April 11, 2019.
Bill 5 — Budget Implementation Bill
Bill 5 includes many measures announced in the province's 2019 budget. The corporate income tax measures within the bill are substantively enacted for purposes of IFRS and Accounting Standards for Private Enterprise (ASPE) on April 9, 2019, the date it received third reading (as British Columbia has a minority government) and enacted for U.S. GAAP purposes as of April 11, 2019 (the date it received Royal Assent).
Corporate income tax measures
Bill 5 does not contain previously announced changes to the Mineral Tax Act to extend the new mining allowance to the end of 2020. However, the bill does introduce changes to several existing tax credits.
Bill 5 includes measures to:
Bill 10 — Natural Gas Tax Credit Bill
Bill 10 introduces a new tax credit for liquid natural gas (LNG) development in the province. This natural gas tax credit will be effective for taxation years beginning on or after January 1, 2020. The corporate income tax measures included in the bill are substantively enacted for purposes of IFRS and Accounting Standards for Private Enterprise (ASPE) on April 4, 2019, the date it received third reading (as British Columbia has a minority government) and enacted for U.S. GAAP purposes as of April 11, 2019 (the date it received Royal Assent).
For more information, contact your KPMG adviser.
Information is current to April 16, 2019. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500