Federal Budget 2025: Previously Announced Measures
In addition to items discussed above in conjunction with other proposals, Budget 2025 confirmed the government’s intention to proceed with the following previously announced tax and related measures, as modified to consider consultations, deliberations and legislative developments, since their release:
- Legislative and regulatory proposals released on August 15, 2025, including with respect to the following measures:
- capital gains rollover on small business investments;
- crypto-asset reporting framework and the common reporting standard (subject to a deferred application date of January 1, 2027);
- tax exemption for sales to employee ownership trusts;
- tax exemption for sales to worker cooperatives;
- non-compliance with information requests;
- excessive interest and financing expenses limitation rules;
- substantive CCPCs;
- goods and services tax/harmonized sales tax (GST/HST) rules for the redemption of coupons;
- technical tax amendments to the Income Tax Act and the Income Tax Regulations;
- technical amendments to the Global Minimum Tax Act; and
- technical amendments relating to the GST/HST and excise levies.
- Legislative proposals released on June 30, 2025, to ensure that all Canada carbon rebates for small businesses are provided tax-free, and to extend the filing deadline for the 2019 to 2023 calendar years.
- The extension of the mineral exploration tax credit announced on March 3, 2025.
- Legislative proposals released on January 23, 2025, to extend the 2024 charitable donations deadline.
- Legislative and regulatory proposals announced in the 2024 Fall Economic Statement, including with respect to the following measures:
- exempting the Canada disability benefit from income;
- expanding eligibility under the clean electricity investment tax credit to the Canada infrastructure bank;
- modifying the small nuclear energy eligibility under the clean technology investment tax credit; and
- expanding eligibility under the clean hydrogen investment tax credit to methane pyrolysis.
- Legislative and regulatory proposals to remove the GST on the construction of new student residences released on November 19, 2024.
- Legislative amendments to give effect to the suspension of the Agreement Between the Government of Canada and the Government of the Russian Federation for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital under domestic law as of November 18, 2024.
- Legislative and regulatory proposals released on August 12, 2024, including with respect to the following measures:
- alternative minimum tax (other than changes related to resource expense deductions);
- disability supports deduction;
- charities and qualified donees;
- registered education savings plans;
- avoidance of tax debts;
- mutual fund corporations;
- synthetic equity arrangements;
- manipulation of bankrupt status;
- accelerated capital cost allowance for purpose-built rental housing;
- withholding for non-resident service providers;
- regulations related to the application of the enhanced (100%) GST rental rebate to cooperative housing corporations;
- clean electricity investment tax credit;
- expanding eligibility under the clean technology investment tax credit to support generation of electricity and heat from waste biomass;
- proposed expansion of eligibility for the clean technology manufacturing investment tax credit to support polymetallic extraction and processing;
- amendments to the Global Minimum Tax Act and the Income Tax Conventions Interpretation Act;
- technical tax amendments to the Income Tax Act and the Income Tax Regulations; and
- technical amendments relating to the GST/HST, excise levies and other taxes and charges.
- Legislative proposals released on July 12, 2024, related to implementing an opt-in fuel, alcohol, cannabis, tobacco and vaping (FACT) value-added sales tax framework for interested Indigenous governments.
- The proposed exemption from the alternative minimum tax for certain trusts for the benefit of indigenous groups announced in Budget 2024.
- The proposed increase in the lifetime capital gains exemption to apply to up to $1.25 million of eligible capital gains announced in Budget 2024.
- Legislative and regulatory proposals announced in Budget 2024 with respect to a new importation limit for packaged raw leaf tobacco for personal use.
- Tax measures to amend the Excise Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the Select Luxury Items Tax Act to give effect to the proposals relating to non-compliance with information requests and to avoidance of tax debts announced in Budget 2024.
- Legislative and regulatory proposals released on August 4, 2023, including with respect to the following measures:
- technical amendments to GST/HST rules for financial institutions;
- tax-exempt sales of motive fuels for export; and
- revised Luxury Tax draft regulations to provide greater clarity on the tax treatment of luxury items.
- Legislative and regulatory proposals released on August 9, 2022, including with respect to the following measures:
- Technical amendments to the Income Tax Act and Income Tax Regulations; and
- Remaining legislative and regulatory proposals relating to the GST/HST, excise levies and other taxes and charges.
- Legislative amendments to implement the hybrid mismatch arrangements rules announced in Budget 2021.
- The income tax measure announced on December 20, 2019, to extend the maturation period of amateur athlete trusts maturing in 2019 by one year, from eight years to nine years.
Budget 2025 also reaffirmed the government’s commitment to move forward as required with other technical amendments to improve the certainty and integrity of the tax system. Budget 2025 reflected the cancellation of the previously proposed increase to the capital gains inclusion rate and the Canadian entrepreneurs’ incentive.
