British Columbia's budget implementation bill, Bill 4, received first reading on April 20, 2021, the same day as its provincial budget. Bill 4 includes several personal and indirect tax measures announced in the budget, as well as the corporate income tax measure to extend the book publishing tax credit by five years. Bill 4 also includes several temporary corporate and personal provincial tax credit extensions and the new increased employment incentive that were previously announced in September 2020.
The corporate income tax measures included in this bill are considered substantively enacted under IFRS and Accounting Standards for Private Enterprise on April 20, 2021, the date the bill received first reading (as British Columbia has a majority government). The corporate income tax measures are not considered enacted for purposes of U.S. GAAP until the bill receives Royal Assent.
Corporate income tax measures
Bill 4 includes several previously announced corporate income tax measures, including the extension of the book publishing tax credit to March 31, 2026 (from 2021). The bill also includes measures to extend deadlines that apply to certain tax credit claims originally due on or after March 13, 2020 to the earlier of either six months from the original due date or December 31, 2020. This extension applies to:
- Scientific Research & Experimental Development Tax Credit
- Book Publishing Tax Credit
- Film and Television Tax Credit
- Interactive Digital Media Tax Credit
- Mining Exploration Tax Credits for Corporate and Personal Income Tax
- Production Services Tax Credit
- Training Tax Credit for Employers.
For more information, contact your KPMG advisor.
Information is current to April 26, 2021. 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