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Ontario enacts several tax measures from 2020 budget

Ontario enacts several tax measures from 2020 budget

Bill 229 has received Royal Assent

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Ontario's Bill 229 is now law after receiving Royal Assent on December 8, 2020. Among other measures, Bill 229 enacts several corporate income tax changes announced in Ontario's 2020 budget to adjust deadlines and other requirements for certain tax credits.

The corporate income tax measures included in Bill 229 are considered substantively enacted for IFRS and Accounting Standards for Private Enterprise (ASPE) purposes on November 5, 2020, the date Bill 229 received first reading (as Ontario has a majority government). The corporate income tax measures are considered enacted for U.S. GAAP purposes on December 8, 2020, the date the bill received Royal Assent.

Corporate income tax measures

Ontario Interactive Digital Media Tax Credit

Bill 229 temporarily allows eligible labour expenditures for the Ontario Interactive Digital Media Tax Credit to be incurred during the 61-month period prior to product completion (up from 37 months). This relief applies for products that are completed after March 14, 2020, and for which eligible labour expenditures were incurred in the 2020 taxation year.

Ontario Book Publishing Tax Credit

Bill 229 temporarily waives the eligibility requirement for the Ontario Book Publishing Tax Credit that a literary work must be published in a bound edition of at least 500 copies. This relief applies to literary works published in 2020 or 2021.

Other tax measures

Bill 229 also includes some of the other tax measures included in Ontario's 2020 budget, including making permanent the 2020 increase to $1,000,000 for the Employer Health Tax exemption threshold and introducing the new seniors' home safety tax credit.

For more information, contact your KPMG advisor.

Information is current to December 22, 2020. 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

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