URGENT for PaBIA NON Canadians February 16, 2023

This information has just come in from the GBA and applies to ALL NON-Canadians who own property in Canada and is being sent to all active PaBIA members for whom we have an email address on file who live outside Canada. Feel free to pass it on to anyone to whom it is applicable.

Underused Housing Tax for Non-Canadians – The deadline is April 30, 2023

ALTHOUGH POINTE AU BARIL IS IN THE EXEMPT AREA, NON-CANADIANS MUST FILE ANYWAY

Last year the federal government brought in the Underused Housing Tax (UHT) which is an annual 1% tax on the ownership of vacant or underused housing in Canada. The intention of this tax is to make housing more affordable for Canadian residents by deterring non-residents from passively investing in Canadian real estate.

The UHT applies to non-resident, non-Canadian owners and though the new tax will not likely affect many of our US and international seasonal residents [Pointe au Baril is in an exempt area], non-Canadian property owners will be REQUIRED to file the UHT-2900 Underused Housing Tax Return and Election Form by April 30. There is a minimum $5000 penalty for not complying.

The CRA has just released the required UHT-2900 Underused Housing Tax Return and Election Form. Please review and share this important information with your members as soon as possible so that those affected can have the information that they need to be compliant with this new legislation.

• More information on the Underused Housing Tax can be found on the Government of Canada’s webpage here.
• Each owner must have an ITN (Individual Tax Number)  FILE NOW if you don’t have one so you will have it in time for the filing deadline!
• The tax form (UHT-2900) can be found here.
• GBA has posted a short piece on the tax that should explain some of the nuances here

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