Ottawa [Canada], February 1: The Canadian Minister of Finance Dominic LeBlanc announced on Friday that the federal government is deferring the date to implement capital gains tax increase to the next year.
The finance minister said in a news release that the implementation date would be changed from June 25, 2024 to Jan. 1, 2026 on which the capital gains inclusion rate would increase from one-half to two-thirds on capital gains realized annually above 250,000 Canadian dollars (174,000 U.S. dollars) by individuals and on all capital gains realized by corporations and most types of trusts.
The tax increase policy was first announced in the federal budget in April 2024 to target the profit an individual or business earns when they sell an asset, such as stocks or property, however the parliament had yet to approve the legislation. Prime Minister Justin Trudeau prorogued the parliament earlier this year which is scheduled to resume sitting on March 24.
"The deferral of the increase to the capital gains inclusion rate will provide certainty to Canadians as we quickly approach tax season," said LeBlanc.
The government would introduce legislation effecting the increase in the capital gains inclusion rate in due course, LeBlanc added.
Source: Xinhua
