Budget 2019: Business Income Tax Measures, Part 2
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.