While there are no estate taxes in Canada, there is a deemed disposition of all capital property owned by an individual at the time of death. In general, this disposition is deemed to take place at the fair market value (FMV) immediately prior to death. It usually results in the recognition of some amount of gain or loss and is included in computing income in the year of death. In all cases, the estate or the beneficiaries, as the case may be, will acquire the property at a cost equal to the deceased’s proceeds from the deemed disposition. Additionally, the FMV of any registered retirement savings plan (RRSP) or registered retirement income fund (RRIF) is fully taxable in the year of death unless it is bequeathed to the individual’s spouse or a dependent minor child.

Because the deemed disposition of capital property can result in significant tax liabilities, the Canadian Tax Act provides relief in some circumstances. For example, there are exceptions for transfers to spouses and certain transfers of farm or fishing property to children. These are discussed below.

1.1 Inheritance tax

There are no inheritance taxes in Canada.(加拿大無遺產稅)

1.2 Gift and endowment tax

Neither Canada nor its provinces have a separate gift or endowment tax regime.(加拿大無贈與稅) However, under the Canadian Tax Act, a disposition at FMV will arise when property is gifted to any person, trust, foundation or charity, depending on whether that person deals at arms’ length with the donor. In the case of Canadian residents, the deemed disposition rules apply to any property that is gifted. There are exceptions for transfers during their lifetimes to qualified spouse trusts, as discussed below, and special trusts created by an individual who is more than 65 years old for the benefit of themselves (an alter ego trust), or themselves and their spouse (a joint partner trust). For nonresidents, the rules will apply to gifts of taxable Canadian property, as defined in the next section.

1.3 Real estate transfer tax.(加拿大有房地產轉移稅)

Several provinces levy a tax on the transfer of real property(部份加拿大省份徵收房地產移轉稅), referred to as either a land transfer tax or real property transfer tax. For tax purposes, real property generally includes land, buildings or structures on land and any rights or interests in land(房子土地等等都徵收). As a general rule, the tax applies to the property’s FMV, which is normally based on the value of the consideration or sale price. Tax is paid when a person registers a transfer of land at a provincial land title office.

Provinces levying the tax generally exempt certain transactions from the tax. Some of the more commonly exempted transactions include:

  • Transfers where the value of the land does not exceed a minimum threshold
  • Transfers for nominal consideration
  • Transfers between family members
  • Transfers of farmland

In addition, many provinces provide an exemption for first-time home buyers.

The table below summarizes the land transfer tax rates by province and territory.(以下是加拿大各省份徵收土地房地產移轉的費率,如果你要買加拿大房地產,務必注意了!!畢竟買賣房地產是未了賺錢,不是為了納稅!!)

Province or territoryTax or dutyStatute
Alberta No land transfer tax; however, registration fees may apply. N/A
British Columbia Total of:
  • 1% of the first C$200,000 of the taxable transaction’s FMV
  • 2% of the remaining taxable transaction’s FMV Property Transfer Tax Act
 Property Transfer Tax Act
Manitoba Total of:
  • 0.5% of the excess of the land’s FMV over C$30,000
  • 0.5% of the excess of the land’s FMV over C$90,000
  • 0.5% of the excess of the land’s FMV over C$150,000
  • 0.5% of the excess of the land’s FMV over C$200,000
 Part III (Land Transfer Tax) of The Tax Administration and Miscellaneous Taxes Act
New Brunswick 0.5% of the greater of:
  • Consideration for the transfer
  • Real property’s assessed value
 Real Property Transfer Tax Act
Newfoundland and Labrador No land transfer tax; however, registration fees may apply. N/A
Northwest Territories No land transfer tax; however, registration fees may apply. N/A
Nova Scotia Determined by each municipality and applied to the sale price of every property that is transferred by deed. Maximum being 1.5% of the value of the property transferred. Part V (Deed Transfers) of the Municipal Government Act
Nunavut No land transfer tax; however, registration fees may apply. N/A
Ontario Total of:
  • 0.5% of the value of the conveyance’s consideration up to and including C$55,000
  • 1% of the value of the conveyance’s consideration exceeding C$55,000 up to and including C$250,000
  • 1.5% of the value of the conveyance’s consideration exceeding C$250,000
  • 2.0% of the value of the conveyance’s consideration exceeding C$400,000 (only where conveyance of land contains at least 1 and not more than 2 single family residences)
 Land Transfer Tax Act
Prince Edward Island 1% of the greater of:
  • Consideration for the transfer
  • Real property’s assessed value
Land transfer tax is not applied when the greater of the consideration or assessed value does not exceed C$30,000.		 Real Property Transfer Tax Act
Quebec Total of:
  • 0.5% of the basis of imposition up to and including C$50,000
  • 1% of the basis of imposition exceeding C$50,000 up to and including C$250,000
  • 1.5% of the value of the basis of imposition exceeding C$250,000
  • The basis of imposition being the greater of:
    • Consideration furnished for the transfer
    • Consideration stipulated for the transfer
    • The immovable’s market value at the time of the transfer
 An Act Respecting Duties on Transfers of Immovables
Saskatchewan No land transfer tax; however, registration fees may apply. N/A
Yukon No land transfer tax; however, registration fees may apply. N/A

1.4 Transfer duty

The only transfer taxes in Canada are on real estate as noted above.

1.5 Net wealth tax

Canada does not have a net wealth tax.

 

arrow
arrow
    全站熱搜

    asiarealestate 發表在 痞客邦 留言(0) 人氣()

    E-mail轉寄