Ontarians will see some new rules kick in this February
Several new laws and regulations in Ontario are set to change next month that will affect business owners as well as people across the country.
The Ontario government and Canada’s federal government will be making a few updates next month, and here are some of the changes you should keep on your radar.
GST/HST Tax Break Deadline
While your recent trips to the grocery store haven’t included GST/HST on your receipt, all that is about to change next month when the temporary tax break comes to an end.
Back in December, the legislation to enact the Goods and Services Tax/Harmonized Sales Tax (GST/HST) break was officially passed into law by the federal government. The temporary tax relief includes certain qualifying daily necessities and holiday items, such as children’s clothing, most food and beverages, toys, and Christmas decor.
The tax break — which went into effect on December 15 — also applied to restaurant meals and takeout. However, the last day for the temporary GST/HST break is February 15, 2025.
Provincial business registry updates
If you’re a business owner, you might want to be aware of an upcoming change to the Ontario Business Registry (OBR) filing process. Effective February 1, 2025, all entities registered in the OBR will be required to use a company key to conduct transactions.
This is a unique nine-digit code that is required to link a business to a ServiceOntario Account. This change primarily affects businesses that were incorporated before October 19, 2021, which did not previously need a company key.
For entities registered on or after October 19, 2021, there is no change to the current filing process, but for entities registered after this date, a company key will be required to access your profile and make filings.
Once you set up your profile, you’ll be able to access several services, including renewing your business name registration, filing an annual return for your corporation, and updating your company information.
Income Tax Act amendment
Back in December, the Minister of Finance and the Minister of National Revenue announced that the federal government would be amending the Income Tax Act to extend the deadline for making donations eligible for tax support in the 2024 tax year until February 28, 2025.
The extension aims to mitigate the impacts of the four-week Canada Post mail stoppage by providing donors with more time to ensure that their contributions are received.
“Charities are at the heart of communities across Canada, lending a helping hand to those in need. This extension recognizes the impact that the Canada Post service disruption had on their fundraising campaigns, and will give charities additional time to receive and process donations so that they can continue their vital work,” said Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs at the time.
The federal tax assistance for donations to charities and other qualified donees is projected to be almost $5 billion for 2024.