Budget 2019: Business Income Tax Measures, Part 2

Budget 2019:  Business Income Tax Measures, Part 2
In part 1 of our blog series on Business income tax measures included in Budget 2019, we provided details on the tax measures related to the Government’s support for Canadian journalism, business investment in zero-emission vehicles and small business deductions for farming and fishing businesses.

Here are the rest of the Business Income Tax Measures included in Budget 2019:

1. Scientific Research and Experimental Development Program (SR&ED): Budget 2019 proposes to repeal the use of taxable income as a factor in determining a CCPC’s (Canadian-controlled Private Corporation) annual expenditure limit for the purpose of the enhanced SR&ED tax credit.
2. Canadian-Belgian Co-productions – Canadian Film or Video Production Tax Credit: Audiovisual co-production treaties and similar instruments allow productions that are joint projects of producers from two different countries to qualify in both countries as a treaty co-production for purposes including the Canadian film or video production tax credit. Last year, the Government of Canada and the Belgian linguistic communities signed a Memorandum of Understanding modernizing the 1984 treaty between Canada and Belgium. Budget 2019 proposes to add this Memorandum of Understanding to the list of instruments under which a film or video production may be produced in order to qualify as a treaty co-production.
3. Charter Conversion Transactions: Budget 2019 proposes an amendment that introduces an additional qualification for the commercial transaction exception in the definition “derivative forward agreement” as the exception applies to purchase agreements.

Source: www.budget.gc.ca/2019
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Budget 2019: Business Income Tax Measures, Part 1

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