O. Reg. 144/24: TAX PAYABLE UNDER SUBSECTION 2 (2.1) OF THE ACT BY FOREIGN ENTITIES AND TAXABLE TRUSTEES

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ontario regulation 144/24

made under the

Land Transfer Tax Act

Made: March 18, 2024
Filed: March 27, 2024
Published on e-Laws: March 27, 2024
Published in The Ontario Gazette: April 13, 2024

Amending O. Reg. 182/17

(TAX PAYABLE UNDER SUBSECTION 2 (2.1) OF THE ACT BY FOREIGN ENTITIES AND TAXABLE TRUSTEES)

1. Ontario Regulation 182/17 is amended by adding the following section:

Spouse, timing of determination

1.0.1 For greater certainty, whether a person is a spouse of another person for the purposes of this Regulation in connection with a conveyance is to be determined in respect of the day on which the conveyance is registered.

2. The Regulation is amended by adding the following section immediately after the heading “Specified Regions and Alternate Rate of Tax”:

Designated land

1.1.1 On and after March 27, 2024, a unit or proposed unit under the Condominium Act, 1998 that is intended for use by a resident of the condominium complex for parking or storage purposes is prescribed as land for the purposes of clause (b) of the definition of “designated land” in subsection 1 (1) of the Act.

3. (1) Clause 2 (c) of the Regulation is revoked and the following substituted:

(c) each transferee certifies that within 60 days after the day the conveyance is tendered for registration, they will occupy the land as their principal residence; and

(2) Section 2 of the Regulation is amended by adding the following subsection:

(2) In the case of a conveyance of designated land that consists solely of land described in section 1.1.1, clause (1) (c) does not apply. Instead, each transferee must certify that within 60 days after the day the conveyance is tendered for registration, they will use the land in connection with their principal residence located in the same condominium complex as the land described in section 1.1.1.

4. (1) Clause 3 (c) of the Regulation is revoked and the following substituted:

(c) each transferee certifies that within 60 days after the day the conveyance is tendered for registration, they will occupy the land as their principal residence.

(2) Section 3 of the Regulation is amended by adding the following subsection:

(2) In the case of a conveyance of designated land that consists solely of land described in section 1.1.1, clause (1) (c) does not apply. Instead, each transferee must certify that within 60 days after the day the conveyance is tendered for registration, they will use the land in connection with their principal residence located in the same condominium complex as the land described in section 1.1.1.

5. (1) Clause 4 (d) of the Regulation is revoked and the following substituted:

(d) each transferee certifies that within 60 days after the day the conveyance is tendered for registration, they will occupy the land as their principal residence.

(2) Section 4 of the Regulation is amended by adding the following subsection:

(2) In the case of a conveyance of designated land that consists solely of land described in section 1.1.1, clause (1) (d) does not apply. Instead, each transferee must certify that within 60 days after the day the conveyance is tendered for registration, they will use the land in connection with their principal residence located in the same condominium complex as the land described in section 1.1.1.

6. The Regulation is amended by adding the following sections:

Exemption, condominium parking or storage

4.2 No tax is payable under subsection 2 (2.1) of the Act in respect of a conveyance of land consisting solely of the land described in section 1.1.1 if,

(a) the land is conveyed pursuant to an agreement of purchase and sale entered into on or before March 26, 2024;

(b) any assignment of the agreement of purchase and sale to any other person was entered into on or before March 26, 2024;

(c) the land is not conveyed to any foreign corporation other than,

(i) a purchaser under the agreement of purchase and sale, or

(ii) a corporation to which the agreement of purchase and sale was assigned; and

(d) the land is not conveyed to any foreign national or taxable trustee other than,

(i) a purchaser under the agreement of purchase and sale,

(ii) a person to whom the agreement of purchase and sale was assigned, or

(iii) the spouse of an individual described in subclause (i) or (ii).

Non-application of exemptions

4.3 No exemption from the requirement to pay tax under subsection 2 (2.1) of the Act is allowed under any of sections 2, 3 or 4 of this Regulation with respect to land that is conveyed to a taxable trustee.

7. (1) Subsection 5 (1) of the Regulation is amended by adding “Subject to section 7.1.1” at the beginning.

(2) Clause 5 (1) (c) of the Regulation is amended by adding “and continuing until the date on which an application under subsection (2) is made” before “the land”.

(3) Section 5 of the Regulation is amended by adding the following subsection:

(1.1) In the case of a conveyance of designated land that consists solely of land described in section 1.1.1, clause (1) (c) does not apply. Instead, the Minister must be satisfied that the land has been used by the transferee or transferees in connection with their principal residence located in the same condominium complex as the land described in section 1.1.1 beginning within 60 days after the day the conveyance was tendered for registration and continuing until the date on which the application for a rebate under subsection (2) is made.

(4) Subsection 5 (2) of the Regulation is amended by,

(a) striking out “91st day” and replacing it with “181st day”; and

(b) striking out “90 days” and replacing it with “180 days”.

8. (1) Subsection 6 (1) of the Regulation is amended by striking out “section 7.1” in the portion before clause (a) and substituting “sections 7.1 and 7.1.1”.

(2) Clause 6 (1) (a) of the Regulation is revoked and the following substituted:

(a) the foreign national has been enrolled full-time in an approved institution at a campus located in Ontario for a continuous period of at least two years that begins within 30 days after the date on which the conveyance was tendered for registration;

(3) Clause 6 (1) (c) of the Regulation is amended by adding “and continuing until the date on which an application under subsection (2) is made” before “the land”.

9. (1) Subsection 7 (1) of the Regulation is amended by striking out “section 7.1” in the portion before clause (a) and substituting “sections 7.1 and 7.1.1”.

(2) Clause 7 (1) (a) of the Regulation is revoked and the following substituted:

(a) the foreign national has been employed full-time in Ontario under a valid work permit for a continuous period of at least one year that begins within 30 days after the date on which the conveyance was tendered for registration;

(3) Clause 7 (1) (c) of the Regulation is amended by adding “and continuing until the date on which an application under subsection (2) is made” before “the land”.

10. The Regulation is amended by adding the following section:

Non-application of rebates, conveyance to taxable trustee

7.1.1 No rebate of tax may be made under section 5, 6 or 7 with respect to land that is conveyed to a taxable trustee.

Commencement

11. This Regulation comes into force on the day it is filed or, if this Regulation is filed after March 27, 2024, this Regulation is deemed to have come into force on March 27, 2024.

Made by:
Pris par 

Le ministre des Finances,

Peter Bethlenfalvy

Minister of Finance

Date made: March 18, 2024
Pris le : 18 mars 2024

 

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