Canadian Business Tax Changes in 2023

There are a number of different tax changes happening in 2023 that could affect businesses. In today’s blog, we are going to list some of the more important ones.

Anti-Flipping Rules

There are new anti-flipping rules that will apply to residential property owned for less than one year. Residential property owned for less than one year will have to report the sale of the property as business income instead of claiming a principal residence exemption. The rule was conceived to put a damper on the rapid turnover of real estate for profit.

Taxable Capital and Small Business Deduction

Bill C-32, which passed in December, raises the upper limit of taxable capital from $15 million to $50 million CAD. Now, corporations with up to but less than $50 million in taxable capital will be able to get the small business deduction.

CPP

There is now an increase in what both employees and employers will be required to pay for CPP. CPP has been steadily increasing over the years, so this is not a big surprise.

Carbon Tax

In April, the carbon tax is going to increase from $50 to $65 per tonne. This will, in turn, raise the tax and the price of gasoline.

Excessive Interest and Financing Expense Deductions

There is proposed legislation to limit the deductions one can take for significant interest and financing expenses. This rule, which is not in effect, yet, is aimed at large companies that claim giant deductions because of cross-border expenses.

These are just a few of the upcoming changes. If you need help navigating these changes to business tax in Canada in 2023, give us a call on the Lower Mainland at (604) 576-9121. Our professionals help clients preparing for both their business and personal taxes. 

Located in Surrey (Cloverdale), British Columbia, since 1971, HWG, Chartered Professional Accountants proudly helps clients throughout the Lower Mainland and across Canada.

Our team of chartered professional accountants provides helpful business and personal tax services. Our continued growth proves the success of our client relationships.