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O. Reg. 240/22: TAX PAYABLE UNDER SUBSECTION 2 (2.1) OF THE ACT BY FOREIGN ENTITIES AND TAXABLE TRUSTEES

filed March 30, 2022 under Land Transfer Tax Act, R.S.O. 1990, c. L.6

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ontario regulation 240/22

made under the

Land Transfer Tax Act

Made: March 22, 2022
Filed: March 30, 2022
Published on e-Laws: March 30, 2022
Printed in The Ontario Gazette: April 16, 2022

Amending O. Reg. 182/17

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

1. Ontario Regulation 182/17 is amended by adding the following sections:

Specified Regions and Alternate Rate of Tax

Specified regions

1.2 All areas of land outside of the Greater Golden Horseshoe Region are prescribed as included in the specified region for the purposes of clause (b) of the definition of “specified region” in subsection 1 (1) of the Act.

Alternate rate of tax

1.3 (1) Subject to subsection (2), an alternate tax rate of 20 per cent is prescribed for the purposes of subsection 2 (2.1) of the Act in respect of conveyances of land tendered for registration after March 29, 2022.

(2) The rate set out in clause 2 (2.1) (a) of the Act applies in respect of a conveyance of land tendered for registration after March 29, 2022 if,

(a) the land is conveyed pursuant to an agreement of purchase and sale entered into on or before March 29, 2022;

(b) any assignment of the agreement of purchase and sale to any other person was entered into on or before March 29, 2022;

(c) the land is not conveyed to any foreign corporation other than,

(i) a purchaser under the agreement of purchase and sale, or

(ii) a corporation to which the agreement of purchase and sale was assigned;

(d) the land is not conveyed to any foreign national or taxable trustee other than,

(i) a purchaser under the agreement of purchase and sale,

(ii) a person to whom the agreement of purchase and sale was assigned, or

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

(e) the land is located within the Greater Golden Horseshoe Region.

. . . . .

Exemption, agreements entered into on or before March 29, 2022

4.1 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 pursuant to an agreement of purchase and sale entered into on or before March 29, 2022;

(b) any assignment of the agreement of purchase and sale to any other person was entered into on or before March 29, 2022;

(c) the land is not conveyed to any foreign corporation other than,

(i) a purchaser under the agreement of purchase and sale, or

(ii) a corporation to which the agreement of purchase and sale was assigned;

(d) the land is not conveyed to any foreign national or taxable trustee other than,

(i) a purchaser under the agreement of purchase and sale,

(ii) a person to whom the agreement of purchase and sale was assigned, or

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

(e) the land is located outside of the Greater Golden Horseshoe Region.

2. (1) Subsection 6 (1) of the Regulation is amended by adding “Subject to section 7.1” at the beginning.

(2) Subsection 6 (2) of the Regulation is revoked and the following substituted:

(2) An application for a rebate under this section must be made on or before the earlier of,

(a) the fourth anniversary of the day on which the tax became payable; and

(b) March 31, 2025.

3. (1) Subsection 7 (1) of the Regulation is amended by adding “Subject to section 7.1” at the beginning.

(2) Subsection 7 (2) of the Regulation is revoked and the following substituted:

(2) An application for a rebate under this section must be made on or before the earlier of,

(a) the fourth anniversary of the day on which the tax became payable; and

(b) March 31, 2025.

4. The Regulation is amended by adding the following section:

Phasing out of rebates for international students and foreign nationals working in Ontario

7.1 No rebate of tax may be made under section 6 or 7 in respect of a conveyance of land that occurs after March 29, 2022 unless,

(a) the land is conveyed pursuant to an agreement of purchase and sale entered into on or before March 29, 2022;

(b) any assignment of the agreement of purchase and sale to any other person was entered into on or before March 29, 2022; and

(c) the land is not conveyed to any foreign national other than,

(i) a purchaser under the agreement of purchase and sale,

(ii) an individual to whom the agreement of purchase and sale was assigned, or

(iii) the spouse of an individual described in subclause (i) or (ii).

Commencement

5. This Regulation comes into force on March 30, 2022 or, if this Regulation is filed after that day, this Regulation is deemed to have come into force on that day.

Made by:
Pris par :

Le ministre des Finances,

Peter Bethlenfalvy

Minister of Finance

Date made: March 22, 2022
Pris le : 22 mars 2022

 

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