Non-Resident Speculation Tax Collected

Additional Information Collection (Prescribed Information for the Purposes of Section 5.0.1)

On April 24, 2017 the Province began collecting additional information to better understand trends in the housing market through the land transfer tax (LTT) system. This additional data will be used for the administration and enforcement of the Land Transfer Tax Act, and to support evidence-based policy development with respect to Ontario's real estate market.

All persons who purchase or acquire land in Ontario that contains at least one and not more than six single family residences, or agricultural land, are required to provide this additional information.

For more information, refer to the Prescribed Information for the Purposes of Section 5.0.1.

Approved institution

Means an institution that is approved under section 8 of Ontario Regulation 70/17 (Ontario Student Grants and Ontario Student Loans) made under the Ministry of Training, Colleges and Universities Act.

Foreign corporation

Means a corporation that is one of the following:

1. A corporation that is not incorporated in Canada.
2. A corporation, the shares of which are not listed on a stock exchange in Canada, that is incorporated in Canada and is controlled, directly or indirectly in any manner whatever, within the meaning of section 256 of the Income Tax Act (Canada), by one or more of the following:
   1. a foreign national
   2. a corporation that is not incorporated in Canada
   3. a corporation that would, if each share of the corporation's capital stock that is owned by a foreign national or by a corporation described in paragraph 1 were owned by a particular person, be controlled, directly or indirectly in any manner whatsoever, within the meaning of section 256 of the Income Tax Act (Canada), by the particular person.

Foreign entity

Means a foreign corporation or a foreign national.

Foreign national

As defined in the Immigration and Refugee Protection Act (Canada), is an individual who is not a Canadian citizen or permanent resident of Canada and includes a stateless person.

Full-time

For the purposes of the “international student” NRST rebate, means enrolled in at least 60 per cent (if the individual does not have a disability) or 40 per cent (if the individual has a disability) of what the approved institution considers to be a full course load for the academic year.

For the purposes of the “working in Ontario” NRST rebate, means in respect of an employment position, a position that requires,

1. no fewer than 30 hours of paid work per week over a 12 month period; and
2. no fewer than a total of 1,560 hours of paid work over that period.

Greater Golden Horseshoe Region (GGH)

Refers to the area of land comprised of the geographic areas of the following municipalities:

• City of Barrie, County of Brant, City of Brantford, County of Dufferin, Regional Municipality of Durham, City of Guelph, Haldimand County, Regional Municipality of Halton, City of Hamilton, City of Kawartha Lakes, Regional Municipality of Niagara, County of Northumberland, City of Orillia, Regional Municipality of Peel, City of Peterborough, County of Peterborough, County of Simcoe, City of Toronto, Regional Municipality of Waterloo, County of Wellington, and Regional Municipality of York.

Land Registration Office (LRO)

LROs are managed by the Ministry of Government and Consumer Services (MGCS) which allows persons to register and search official private property records using Ontario’s land registration system.

Land Transfer Tax (LTT)

The LTT is a broad-based tax imposed on persons acquiring land, or a beneficial interest in land, in Ontario with few exceptions.  LTT is payable to the Province when the transfer is registered under the Land Titles Act or the Registry Act, as applicable.

If the acquisition in an interest in land is not registered, LTT is payable directly to the Province in respect of the unregistered disposition of a beneficial interest in land, within 30 days after the transaction closing date.

Nominee

Means a foreign national who is nominated under the Ontario Immigrant Nominee Program.

Non-Resident Speculation Tax (NRST)

The NRST is a 15 per cent tax on the purchase or acquisition of an interest in residential property located in the GGH by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) and taxable trustees.

The NRST applies in addition to the general LTT in Ontario, and is effective as of April 21, 2017.

For more information, refer to the Non-Resident Speculation Tax.

Permanent resident of Canada

Means a person who has acquired permanent resident status and has not subsequently lost that status under section 46 of the Immigration and Refugee Protection Act (Canada).

Protected person

Means a foreign national on whom refugee protection is conferred under section 95 of the Immigration and Refugee Protection Act (Canada).

Single family residence

Means a unit or proposed unit under the Condominium Act, 1998 or a structure or part of a structure that is designed for occupation as the residence of a family, including dependents or domestic employees of a member of the family, whether or not rent is paid to occupy any part of it and whether or not the land on which it is situated is zoned for residential use and,

1. includes such a residence that is to be constructed as part of the arrangement relating to a conveyance, and
2. does not include such a residence that is constructed or is to be constructed on agricultural land that is eligible to be classified in the farm property class prescribed under the Assessment Act.

For example: a detached and semi-detached house, duplex, freehold townhouse, condominium townhouse, condominium apartment, and cottage.

Taxable trustee

Means a trustee of:

• a trust with at least one trustee that is a foreign entity, or
• a trust with no foreign entity trustees if a beneficiary of the trust is a foreign entity.

Taxable trustee does not include a trustee acting for the following types of trusts:

1. A mutual fund trust within the meaning of subsection 132 (6) of the Income Tax Act (Canada).
2. A real estate investment trust as defined in subsection 122.1 (1) of the Income Tax Act (Canada).
3. A SIFT trust as defined in subsection 122.1 (1) of the Income Tax Act (Canada).

Teranet Inc.

A private corporation that is the exclusive provider of Ontario’s online property search and electronic land registration service.

Teranet Express

Teranet Express is a self-serve channel that allows customers to access the Ministry of Government and Consumer Services (MGCS) Land Registration Database and the Ministry of the Attorney General (MAG) Writs Database.

This platform must be used to electronically access and complete the additional information collection form.

Value of the consideration

This term can generally be considered as the purchase price of the land (found on the agreement of purchase and sale). The “value of the consideration” is declared in the land transfer tax statements for electronic land registrations, or in the land transfer tax Affidavit which is required to be filed with the Land Registrar.

However, the definition of the “value of the consideration” under the Land Transfer Tax Act is broad, and is not always limited to the purchase price stated in an agreement of purchase and sale.  For example, the assumption of any liabilities (e.g. a mortgage), or outstanding encumbrances on the land (e.g. lien on the property) may also be included in the “value of the consideration”.

• at least one and not more than six single family residences.

• at least one and not more than six single family residences, or
• agricultural land.

• Foreign entities:
  • Foreign nationals, or
  • Foreign corporations
• Taxable trustees, means a trustee of:
  • a trust with at least one trustee that is a foreign entity, or
  • a trust with no foreign entity trustees if a beneficiary of the trust is a foreign entity

• Canadian citizens and permanent residents of Canada;
• Canadian corporations;
• Foreign nationals
  • Persons nominated under the Ontario Immigrant Nominee Program;
  • Protected persons (refugees);
  • Spouses of Canadian citizens, permanent residents of Canada, nominees or protected persons;
• Foreign corporations; and
• Trustees, nominees, agents, or similar arrangements.

• Trustee acting for the following types of trusts:
  • Mutual fund trust
  • Real Estate Investment Trust (REIT)
  • Specified Investment Flow-Through (SIFT) trust
• Nominee:
  • A foreign national who is nominated under the Ontario Immigrant Nominee Program
• Protected persons (refugee):
  • A foreign national on whom refugee protection is conferred under section 95 of the Immigration and Refugee Protection Act (Canada)
• Spouses:
  • A foreign national who jointly purchases residential property with a spouse, who is a Canadian citizen, permanent resident of Canada, nominee or protected person

• Trustee acting for the following types of trusts:
  • Mutual fund trust
  • Real Estate Investment Trust (REIT)
  • Specified Investment Flow-Through (SIFT) trust