You're using an outdated browser. This website will not display correctly and some features will not work.
Learn more about the browsers we support for a faster and safer online experience.

O. Reg. 182/17: TAX PAYABLE UNDER SUBSECTION 2 (2.1) OF THE ACT BY FOREIGN ENTITIES AND TAXABLE TRUSTEES

under Land Transfer Tax Act, R.S.O. 1990, c. L.6

Skip to content
Versions

Français

Land Transfer Tax Act

ONTARIO REGULATION 182/17

TAX PAYABLE UNDER SUBSECTION 2 (2.1) OF THE ACT BY FOREIGN ENTITIES AND TAXABLE TRUSTEES

Consolidation Period:  From April 9, 2018 to the e-Laws currency date.

Last amendment: 224/18.

Legislative History: 224/18.

This is the English version of a bilingual regulation.

Definitions

Definitions

1. In this Regulation,

“business day” means a day from Monday to Friday, other than a holiday as described in section 1.1; (“jour ouvrable”)

“nominee” means a foreign national who is nominated under the Ontario Immigrant Nominee Program; (“candidat désigné”)

“protected person” means a foreign national on whom refugee protection is conferred under section 95 of the Immigration and Refugee Protection Act (Canada). (“personne protégée”) O. Reg. 224/18, s. 1.

Holidays

1.1 (1) This section applies for the purposes of the definition of “business day” in section 1. O. Reg. 224/18, s. 2.

(2) The following days are holidays:

1. New Year’s Day.

2. Family Day.

3. Good Friday.

4. Easter Monday.

5. Victoria Day.

6. Canada Day.

7. Civic Holiday.

8. Labour Day.

9. Thanksgiving Day.

10. Remembrance Day.

11. Christmas Day.

12. Boxing Day.

13. Any special holiday proclaimed by the Governor General or the Lieutenant Governor. O. Reg. 224/18, s. 2.

(3) If New Year’s Day, Canada Day or Remembrance Day falls on a Saturday or a Sunday, the following Monday is a holiday. O. Reg. 224/18, s. 2.

(4) If Christmas Day falls on a Saturday or a Sunday, the following Monday and Tuesday are holidays. O. Reg. 224/18, s. 2.

(5) If Christmas Day falls on a Friday, the following Monday is a holiday. O. Reg. 224/18, s. 2.

Exemptions

Exemption, nominees

2. No tax is payable under subsection 2 (2.1) of the Act in respect of a conveyance of land if,

(a) the land is conveyed to a nominee;

(b) any other transferees named in the conveyance are individuals who are either Canadian citizens, permanent residents of Canada, nominees or protected persons;

(c) the transferees each certify that they will occupy the land as their principal residence; and

(d) the nominee has applied to become a permanent resident of Canada or certifies that they will apply to become a permanent resident of Canada.

Exemption, protected persons

3. No tax is payable under subsection 2 (2.1) of the Act in respect of a conveyance of land if,

(a) the land is conveyed to a protected person;

(b) any other transferees named in the conveyance are individuals who are either Canadian citizens, permanent residents of Canada, nominees or protected persons; and

(c) the transferees each certify that they will occupy the land as their principal residence.

Exemption, conveyance to foreign national and spouse

4. No tax is payable under subsection 2 (2.1) of the Act in respect of a conveyance of land if,

(a) the land is conveyed to a foreign national and the foreign national’s spouse;

(b) at the time of the conveyance, the spouse is a Canadian citizen, a permanent resident of Canada, a nominee or a protected person;

(c) any other transferees named in the conveyance are individuals who are either,

(i) Canadian citizens, permanent residents of Canada, nominees or protected persons, or

(ii) the spouse of an individual described in subclause (i); and

(d) the transferees each certify that they will occupy the land as their principal residence.

Rebates

Rebate for foreign nationals who become permanent residents of Canada

5. (1) The Minister may rebate tax paid by a foreign national under subsection 2 (2.1) of the Act in respect of a conveyance of land if the Minister is satisfied that,

(a) the foreign national is the only transferee named in the conveyance or, if two transferees are named, they are the foreign national and the foreign national’s spouse;

(b) the foreign national became a permanent resident of Canada within four years after the day the conveyance was tendered for registration; and

(c) on and after a date that is within 60 days after the day the conveyance was tendered for registration, the land has been occupied by the transferee or transferees as their principal residence.

(2) An application for a rebate under this section shall be made before the 91st day after the foreign national or the foreign national’s spouse became a permanent resident of Canada, but no application shall be made later than four years and 90 days after the day the tax became payable.

Rebate for international students

6. (1) The Minister may rebate tax paid by a foreign national under subsection 2 (2.1) of the Act in respect of a conveyance of land if the Minister is satisfied that,

(a) the foreign national has been enrolled full-time in an approved institution at a campus located in Ontario for a continuous period of at least two years after the day the conveyance was tendered for registration;

(b) the foreign national is the only transferee named in the conveyance or, if two transferees are named, they are the foreign national and the foreign national’s spouse; and

(c) on and after a date that is within 60 days after the day the conveyance was tendered for registration, the land has been occupied by the transferee or transferees as their principal residence.

(2) An application for a rebate under this section shall be made within four years after the day on which the tax became payable.

(3) In this section,

“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.

(4) An individual enrolled at an approved institution is considered to be enrolled full time for a year if,

(a) in the case of an individual who does not have a disability, the individual is enrolled in at least 60 per cent of what the institution considers to be a full course load for the academic year; or

(b) in the case of an individual with a disability, the individual is enrolled in at least 40 per cent of what the institution considers to be a full course load for the academic year.

Rebate for foreign nationals working in Ontario

7. (1) The Minister may rebate tax paid by a foreign national under subsection 2 (2.1) of the Act in respect of a conveyance of land if the Minister is satisfied that,

(a) the foreign national has been employed full-time in Ontario under a valid work permit for at least a continuous period of one year after the day the conveyance was tendered for registration;

(b) the foreign national is the only transferee named in the conveyance or, if two transferees are named, they are the foreign national and the foreign national’s spouse; and

(c) on and after a date that is within 60 days after the day the conveyance was tendered for registration, the land has been occupied by the transferee or transferees as their principal residence.

(2) An application for a rebate under this section shall be made within four years after the day on which the tax became payable.

(3) In this section,

“full-time” means, in respect of an employment position, a position that requires,

(a) no fewer than 30 hours of paid work per week over a 12 month period; and

(b) no fewer than a total of 1,560 hours of paid work over that period.

Written application

8. An application for a rebate under this Regulation shall be made in writing and shall set out the information the Minister requires to determine whether the applicant is eligible for the rebate.

Interest on rebates

9. (1) If the Minister makes a rebate of tax under section 5, 6 or 7, including as a result of an objection made under section 13 of the Act or an appeal under section 14 of the Act, interest shall be paid or applied on the amount of the rebate calculated at the rate determined under section 10 and compounded daily from the 40th business day following the date the application for the rebate was made to the date the rebate is paid or applied by the Minister against other liabilities of the person entitled to the rebate.  O. Reg. 224/18, s. 3.

(2) No interest is payable on an amount that is rebated to a person under section 5, 6 or 7 with respect to the period from the date the person paid the amount until the 40th business day following the date the application for the rebate was made.  O. Reg. 224/18, s. 3.

(3) Interest shall not be paid or applied under this Regulation with respect to a rebate if the amount of the interest would be less than $1. O. Reg. 224/18, s. 3.

Rates of interest

10. (1) In this section,

“adjustment date” means January 1, April 1, July 1 or October 1; (“date de rajustement”)

“average prime rate”, on a particular date, means the mean, rounded to the nearest whole percentage point, of the annual rates of interest announced by each of the Royal Bank of Canada, The Bank of Nova Scotia, the Canadian Imperial Bank of Commerce, the Bank of Montreal and The Toronto-Dominion Bank to be its prime or reference rate of interest in effect on that date for determining interest rates on Canadian dollar commercial loans by that bank in Canada. (“taux préférentiel moyen”)  O. Reg. 224/18, s. 3.

(2) For the purposes of section 9, the rates of interest shall be determined in accordance with the following rules:

1. A base rate of interest shall be determined for January 1, 2017 and for each adjustment date after January 1, 2017 and shall be equal to the average prime rate on,

i. October 15 of the previous year, if the adjustment date is January 1,

ii. January 15 of the same year, if the adjustment date is April 1,

iii. April 15 of the same year, if the adjustment date is July 1, and

iv. July 15 of the same year, if the adjustment date is October 1.

2. The base rate of interest in effect on a particular date shall be,

i. the base rate for the particular date, if the particular date is an adjustment date, and

ii. the base rate for the last adjustment date before the particular date, otherwise.

3. The rate of interest to be paid or allowed by the Minister to a person under section 9, in respect of a particular day after January 1, 2017, shall be an annual interest rate that is three percentage points lower than the base rate of interest in effect for that day. O. Reg. 224/18, s. 3.

 

Français