2025 Federal Budget Bulletin

On November 4, 2025, the Minister of Finance and National Revenue, the Honourable François-Philippe Champagne, presented Budget 2025 – Canada Strong, to the House of Commons. No changes were proposed to personal or corporate tax rates. Some highlights include the following:

A. Personal Measures

• Automatic tax filings for low-income Canadians to commence for the 2025 tax year.
• A 5% credit for eligible personal support workers working for eligible health care establishments.

B. Business Measures

• A variety of new and extended measures for accelerated CCA on asset acquisitions.
• An anti-avoidance measure to prevent tax deferrals related to refundable dividend tax where dividends are paid within a corporate group.
• Various modifications to tax incentives related to the clean economy.

C. International Measures

• Revisions to the transfer pricing rules and requirements.

D. Sales and Excise Measures

• Elimination of the underused housing tax.
• Removal of the luxury tax on vessels and aircraft (but not on vehicles).

E. Other Measures

• Deferral of bare trust filing requirements until the 2026 tax year.
• Deferral of expanded filing requirements for non-profit organizations until the 2027 tax year.

F. Previously Announced Measures

• Intention to proceed with previously announced measures, including the capital gains rollover on small business investments, making the Canada carbon rebate for small businesses tax-free, allowing charitable donations made in early 2025 to be claimed in 2024 and increasing the lifetime capital gains exemption limit to $1,250,000 effective in 2024.
• Confirming the cancellation of the proposed increase to the capital gains inclusion rate and the Canadian entrepreneurs’ incentive.