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The new measure on reimbursement for rental residential properties

September 27th, 2023

5 Important Points Concerning the Proposed Legislation Amendment Regarding the Enhanced GST Rental Rebate to Build More Apartments for Renters

  1. The enhancement would increase the GST Rental Rebate from 36 per cent to 100 per cent;
  2. The enhancement would remove the existing GST Rental Rebate phase-out thresholds for purpose-built rental housing projects;
  3. The enhanced GST Rental Rebate should apply to projects that begin construction on or after September 14, 2023, and on or before December 31, 2030, and complete construction by December 31, 2035;
  4. The enhanced GST Rental Rebate should not apply to individually-owned condominium units, single-unit housing, duplexes, triplexes, housing co-ops, and owned houses situated on leased land and sites in residential trailer parks;
  5. Qualifying new residential units would be those that qualify for the existing GST Rental Rebate and are in buildings with at least:
    1. Four private apartment units (i.e., a unit with a private kitchen, bathroom, and living areas), or at least 10 private rooms or suites (e.g., a 10-unit residence for students, seniors, or people with disabilities); and,
    2. Ninety per cent of residential units designated for long-term rental.

For more details, please refer to the official announcement by the Department of Finance Canada at the following link: https://www.canada.ca/en/department-finance/news/2023/09/enhanced-gst-rental-rebate-to-build-more-apartments-for-renters.html

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The new measure on reimbursement for rental residential properties