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首次置业优惠- 2019 财政预算新政策

刚刚出炉的2019 财政预算案发布了诸多帮助中产置业，购买可负担房屋方面的政策。让我们率先解读其中对房屋方面的相关政策。

  • The First-Time Home Buyer Incentive (首次买房优惠政策)

为了帮助首次置业者获得贷款，并降低每月还本付息。联邦政府将拨款12.5亿元，由CMHC （Canada Mortgage and Housing Corporation） 向符合资格的首次购房者提供帮助 （shared equity mortgage）。 符合资格的首次购房者支付最低的首付要求后， 可向CMHC申请二手房价5%，新房10%的无息贷款用于降低购房人向银行申请的贷款和利息支出。申请人家庭收入不能超过120,000, 所申请的贷款不能超过收入4倍。该贷款无需每月偿还，可在房屋出售时还清。

举例：小王打算购买Ajax价值400,000的新建公寓。 由于该公寓是新建房屋，小王可申请10% （即40,000 shared equity mortgage）。小王的首付是房价5% （2万），他在shared equity mortgage里借到4万， 这样他只需要向银行借 $340,000. 每月只需还银行贷款，不需要还shared equity mortgage 的本金利息。小王只需要在房屋卖出后偿还贷款40,000.

该政策稍后会有完整的标准认定符合资格的申请人，以及对房屋价格的限制。

  • HBP (home buyer plan) –首次买房提取最高额度由25，000 提高到35， HBP是RRSP（注册养老金）项目中的一个为首次置业者而设的优惠项目。2019年3月19日后，购房者可从RRSP 中取出35，000 用于购房，无需缴税。该款项于此后15年内分期还入RRSP 账户，或者纳入当你收入。
  • HBP延申；如果你已经拥有住房，但是由于婚姻状况改变，例如离婚，分居，而需要购房，也可以使用HBP。但是不可超过35，000最高额度。
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Register for a GST/HST account – Don’t miss your input tax credit (ITC)

GST/HST is a voluntarily registered program. If your total taxable sales is less than 30,000 in the last four consecutive calendar quarters, you can choose not to register a GST/HST account, and become a small supplier.

When your total revenues from taxable sales are over $30,000 in the past four consecutive calendar quarters, you must register for GST/HST. At the point you become registrant, you must charge GST/HST on sales, and calculate the ITC on purchases.

What about the ITC that you paid before you became registrant? Can you still claim the ITC on this expenditures? The answer depends on the type of your expenditure.

You are eligible to claim an ITC on the property such as equipment, inventory that you had on hand to use in your commercial activities at the time you became registrant. For example, you have purchased inventories of $10,000 on Nov 1 2018, and at the time you became registrant you still have remaining of $4,000 on hand. You can claim the ITC on $4,000 inventory on hand.

Additionally, you can claim the GST/HST on prepaid expense such as prepaid rent. For example, you became a GST/HST registrant on Feb 1 2019, and you have paid Jan ~ March rent on January 1 2019. You can claim GST/HST on the Feb and March rental expenses. However, you can’t claim ITC on January rent and any utilities expense that you paid before Feb 1 2019, because these expenses cover the period before registered.

The overall idea is that you can claim the GST/HST on the prepaid, capital expenditures and inventories, and the calculation is based on it fair market value on the date you became registrant. But you cannot claim the GST/HST on the operating expenses that you paid in the past such as telephone bills and rent.

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Correct a GST/HST return- input tax credit (ITC)

Small business owners wear different hats. Especially at the startup stage, you are busy in working on the business and dealing with piles of bills and accounting records at the same time. Missing or misplacing the invoices and receipts always happen. What if you found the misplaced purchased receipts after you filed the GST/HST return?

You may already know that the HST paid on purchased goods and services can reduce the HST payable as input tax credit (ITC). Missing receipts means you have to pay extra. If this situation apply to you, you don’t need to adjust previous filed return. You can claim the previously unclaimed ITCs on future GST/HST return within the time limited.

 

For regular business, the time limit is four years after the end of the reporting period in which the ITC should be included.

For example, ABC Inc. (CCPC) is quarterly filer who didn’t included an ITC of $1,300 on capital purchased, when the return covered Oct 1 ~ Dec 31 2018. ABC can choose to include this unclaimed ITC on any GST/HST returns ended by Dec 31, 2022. The final period allowed is Oct 1 ~ Dec 31 2022 and due on Jan 31 2023.

For listed financial institutions and corporations with annual sales more than $6 million, the time limits to recover the unclaimed ITC is two years.

Remember always keep your invoices and receipts to support your ITC claims. If you paid GST/HST on purchased, you should make sure that vendor’s invoices include HST number, rate and total amount.

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加拿大公司税务GST/HST申报- 支出忘了申报怎么办？

在加拿大经营小生意不容易。创业初期凡事亲力亲为，常常把收到的进货发票收据胡乱一放，一到年关便找不到了。丢失票据照成的较大损失就是购货中的HST无法抵扣。如果在公司GST/HST报表申报过后才找到这些单据，还是能在之后申报中扣回这部分税。

通常的做法就是，在发票所属申报期限后4年内申报就可以了。不需要修改已经发出的报表。

举例： A公司2018年12月1日购买商品11300元（含HST1300），但是由于发票丢失，而没有计入抵扣HST报表。A公司可以在2022年12月31号前把这笔税扣回来。公司需要把发票保存好备查。

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Highline for 2018 New Ontario Economic outlook and fiscal review

  • The Low-income Individuals and Families Tax (LIFT)

The low-income individual and families tax is Ontario non-refundable tax credit which can be used to offset the Ontario personal income tax payable exclude the Ontario Health Premium. In 2019 the tax filer who earns employment income can claim LIFT at lower of $850 or 5.05% of its employment income for individual and $1,700 for couple. The LIFT will reduce when individual income greater than 30,000 and 60,000 for family.

The credit will reduce after additional income by 10% of the greater of dividable net income excess of $30,000 and $60,000 for family. The credit will be reduced to zero when individual income exceed $38,500 and family income exceed $68,500.

The LIFT is non-eligible for those who are non-resident of Ontario, no employment income and be in prison for more than six months during the year.

Property tax exemption for the Royal Canadian Legion

The Ontario government provide a property tax exemption for properties occupied by Ontario branches of the Royal Canadian Legion, starting in 2019.

 

For business

  • Removing requirements for four days’ notice for scheduling change and on-call pay;
  • Eliminating three sick days, two bereavement days, and three family responsibility days per year for employee.
  • Repealing provisions for equal pay for equal work on the basis of employment status such as part-time and full-time workers.
  • The Ontario employer has to pay employer health tax on its annual payroll amount greater than 450,000. In 2019 this exemption increase to 490,000.
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2019 安省税务新政 – 解读2018年安省经济展望及财政回顾报告

2018 年 11 月15号，新任省长福特发表了其在任第一份经济展望及财务回顾报告。报告涵盖了多项税务减免以及经济刺激计划。

报告中最重要的与个人税务相关的减免莫过于 “ The Low-income Individuals and Families Tax (LIFT)”。这项2019年的个人税务减免计划给安省纳税人提供个人最高850，家庭最高1700的税务抵扣额度。LIFT是一项非现金的税金抵扣额度，只能用于抵扣个人的省税应缴金额不能退回现金。该抵扣额度是针对安省有工资收入的低收入人群。

其计算方式为首3万元工资收入以内的5.05%，最高不超过850。当纳税人收入超过3万，该抵扣额度递减10%。在收入超过38，500时，该抵扣额为零。

案例：

A君单身安省居民，2018年的工资收入为29，200（无EI, 投资收入）。A君2019年申报2018税时，其安省个人税为850.。由于A君每个月在雇主那里领取的支票是税后收入，A君不需要额外交税。但是在2019年，LIFT引入后，A君可以退回850元所得税预缴，因为LIFT计算方式是：29200 x 0.0505=$1460 或者 $850 取最低。A君用850抵扣其应缴的安省所得税，其雇主预缴部分可以退回。

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2018 New Ontario Economic outlook and fiscal review- Tax update

  • The Low-income Individuals and Families Tax (LIFT) 

The low-income individual and families tax is Ontario non-refundable tax credit which can be used to offset the Ontario personal income tax payable exclude the Ontario Health Premium. In 2019 the tax filer who earns employment income can claim LIFT at lower of $850 or 5.05% of its employment income for individual and $1,700 for couple. The LIFT will reduce when individual income greater than 30,000 and 60,000 for family.

The credit will reduce after additional income by 10% of the greater of dividable net income excess of $30,000 and $60,000 for family. The credit will be reduced to zero when individual income exceed $38,500 and family income exceed $68,500.

The LIFT is NOT for those who

non-resident of Ontario

no employment income

be in prison for more than six months during the year.

  • Removing requirements for four days’ notice for scheduling change and on-call pay;
  • Eliminating three sick days, two bereavement days, and three family responsibility days per year for employee.
  • The Ontario employer has to pay employer health tax, when its annual payroll amount greater than $450,000. In 2019 this exemption amount is increased to $490,000.
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GST/HST for Non-For-Profit organization

Almost every Non-For-Profit Organization (NFP) pays the GST/HST on purchase in Canada (except certain Indians groups and organizations). Some NFP organizations charge a fee on goods and service, while others provide free access to their service and supplies. Therefore how GST/HST rule applies to NFP organization is important, because some organization paid large amount of GST/HST on purchase.

If NFP organization charged a fee on taxable goods and service such as selling memberships and educational seminars, and they are GST/HST registrant, the organizations have to file regular GST/HST return to report GST/HST collected and claim ITC for GST/HST paid on purchases.

When NFP organizations provide exempt goods or service such as health and child care, no GST/HST will be charged on supplies. If the NFP only provides exempt goods and service in Canada, they cannot register GST/HST and no ITC could be claimed for the GST/HST paid on purchases. Unless the NFP is a qualifying non-profit organization for the fiscal year, they can file public service rebate (PBS) to recover 50% of GST/HST paid on purchased. To be a qualifying non-profit organization, at least 40% of its total revenue must come from government’s funding in the fiscal year.

If supplies of property and services are provided free of charge, they are considered exempt goods and service. Additionally, if the sales of goods are for fund-raining purpose instead of regular course of business activities, and all the salespersons are volunteers, the sales are exempt from GST/HST. The organization can recover 50% of ITC only if they are qualifying non-profit organization.

If the NFP organizations provide combined taxable and exempt goods or service, they have to collect GST/HST on taxable goods or service, and no GST/HST will be charged on exempt activities. For claiming ITC, the NFP organization can claim ITCs on the purchases related to commercial activities, but they cannot claim ITCs for the GST/HST paid or payable on property and service on exempt activities, unless they are qualifying NFP organization, who can recover 50% of ITC on exempt activities from PSB rebate.

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2018 Federal Budget Proposal – tax updates

On Feb 2018, the Federal government delivered the 2018 Federal Budget. The plan introduces series of updates for taxation including passive investment income and Canada Workers Benefit. There are 8 things may impact your personal and business income tax returns.

Personal tax return

  • CWB replaces WITB

The new Canada Workers Benefit (CWB) will replace the Working Income Tax Benefit (WITB). The WITB is a refundable tax credit up to $1,894 for eligible working low-income earner. Under CWB, the maximum benefit will increase up to $1922 for regular CWB in 2018 and $2,335 in 2019.

  • Medical Expenses Tax Credit

The Medical expenses tax credit will be allow for the medical expenses for animals specially trained to assist mental impairment. The qualifying expenses include the cost of the animal cost for care and maintenance such as food and veterinary care, and costs for training the individual in handling the animal.

  • Registered Disability Savings Plans (RDSP)

Current RDSP rule allow family members (parents, spouses and common-law partners) to be RDSP plan holder. This rule will expire at the end of 2018, and the budget extend it to 2023.

  • Employment Insurance Parental Sharing Benefit

A five-week employment Insurance Parental Sharing benefit will become effective on June 2019. Both parents can agree to share this 5-week parental leave, and this benefit is additional to previous 35 weeks parental benefit.

  • Apprenticeship Incentive Grant for Women

Current Apprenticeship Completion Grant offers one-time taxable cash grant of $2,000 to a registered apprentice. The new grant will provide women $3,000 per year (up to 2 years), if they completed their apprenticeship training in male-dominated trades field.

Business tax return

  • Small Business Deduction (SBD)

The Canadian Controlled Private Corporation (CCPC) is eligible for SBD, which reduces the corporation tax rate to 13.5% in Ontario for the first 500,000 business income earned in Canada. The SBD will reduced when business income is greater than 10 million, and fully eliminated when it reaches 15 million. The proposal change the rule to share the SBD within the associated group where the associated group earns “adjusted aggregate investment income” greater than $50,000. When the “adjusted aggregate investment income reach $150,000, the SBD will be reduced to zero. The new rule also cover the connected group. The connected group must share the SBD, when more than 90% income was earned from the connected company.

  • Tax on split income

The Budget has proposed changes to tax rules that will restrict income splitting on family members, which is widely used in private corporations. Under new tax rule, the family members who weren’t work for business for more than 20 hours per week will be subject to highest tax rate on their income from the company.

  • Refundable Dividend Tax on Hand (RDTOH)

The existing rule about RDTOH is 38 1/3% of dividend received and 20 2/3% of aggregated investment income. When CCPC payout dividend, the company can claim refund from RDTOH account. The proposal will generally allow a CCPC to claim RDTOH only on the payment of non-eligible dividends.  When CCPC pays eligible dividend, it can claim refund on RDTOH on the payment of (Part IV) tax on eligible dividends. The new RDTOH will be separated by eligible RDTOH and non-eligible RDTOH account under the new rule.