Canada: Tax measures enacted in British Columbia

Canada: Tax measures enacted in British Columbia

British Columbia's budget bill (Bill 4) received Royal Assent on 14 August 2020; thereby, tax measures introduced in the province's 2020 budget are now enacted.


The corporate income tax provisions include:

  • Measures concerning claims for the film production services tax credit
  • Extension of the training tax credits for employers to the end of 2022

The indirect tax and provincial sales tax (PST) measures include:

  • Expanded PST registration requirements for Canadian sellers of goods and for Canadian and foreign sellers of software and telecommunication services, when the specified British Columbia revenues exceed $10,000* (effective date to be set by regulation)
  • Repeal of a PST exemption for carbonated beverages that contain sugar, natural sweeteners or artificial sweeteners (effective date to be set by regulation)
  • Revised carbon tax rates to align with the federal carbon pricing “backstop” methodology (rate increases are effectively deferred to 1 October 2020, through a related remission regulation filed on 18 August 2020).

The individual (personal) tax measures include:

  • A new top income tax rate of 20.5% for individuals earning more than $220,000 (effective 1 January 2020)
  • Extended training tax credit for individuals to the end of 2022 (from 2019)
  • Extended farmers' food donation tax credit to the end of 2023 (from 2020)

Read an August 2020 report prepared by the KPMG member firm in Canada

*$=Canadian dollar

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