Promise History
3.04.051 - “We propose to introduce] a minimum effective tax rate of 15% for individuals with taxable income above the threshold for the top bracket ($222,661 for 2022). The minimum tax will be calculated as 15% of taxable income and will replace the net federal tax where net federal tax is lower than the minimum tax. Foreign income taxes paid will be used to reduce the minimum tax payable, based on the share of foreign income in net income, to avoid double-taxation of income. For Quebec residents, the refundable Quebec abatement will be calculated based on the minimum tax amount when it is greater than net federal tax.”
05-Feb-2025
“The Alternative Minimum Tax (AMT) system imposes a minimum level of tax on taxpayers who claim certain tax deductions, exemptions or credits to reduce the tax that they owe to very low levels. Under the AMT system, there is a parallel tax calculation that allows fewer deductions, exemptions, and credits than under the regular income tax calculation. If the amount of tax calculated under the AMT system is more than the amount of tax owing under the regular tax system, the difference owing is payable as AMT for the year. […] Before 2024, AMT rules applied a flat 15% tax rate on adjusted taxable income. Starting in 2024, the government increased the AMT rate to 20.5%, which equals the rate for the second federal income tax bracket.”
The new Alternative Minimum Tax (AMT) - CIBC
12-Feb-2024
The minimum tax will replace the federal net tax when the latter is lower than the minimum tax. Moreover, foreign income tax will be subtracted from the minimum tax payable, in proportion to the share of net income that constitutes foreign income, in order to avoid double taxation of income. All the elements of the promise have been fulfilled.
« Lorsque l’impôt fédéral de base est inférieur au montant minimum applicable, l’impôt fédéral à payer (aux fins de l’impôt minimum de remplacement) par le particulier correspondra au montant suivant : // Impôt fédéral à payer[11] = Montant minimum applicable – crédit spécial pour impôt étranger »
Impôt minimum de remplacement - Chaire en fiscalité et en finances publiques
26-Nov-2023
« Le taux de l’IMR passera alors de 15 % à 20,5 %. Par contre, l’exemption de base de l’IMR passera de 40 000 $ à environ 173 000 $, dans l’objectif de concentrer l’impact sur les revenus les plus élevés. // L’assiette de revenus à laquelle s’applique le calcul de l’IMR sera également élargie en 2024. Entre autres mesures, les gains en capital seront inclus à 100 %, plutôt qu’à 80 % actuellement. De même, le gain en capital qui résulte du don d’un titre boursier à des donataires reconnus devra être inclus à 30 % en 2024, contre 0 % en 2023. »
L’impôt minimum de remplacement - La Presse
28-Mar-2023
The legislative change is proposed, it remains to be seen whether the measure is implemented in fiscal year 2024.
“To ensure the wealthiest Canadians pay their fair share of tax, Budget 2023 proposes legislative amendments to raise the AMT rate from 15 per cent to 20.5 per cent and further limit the excessive use of tax preferences. These amendments would generate an estimated $3.0 billion in revenues over five years, beginning in the 2024 taxation year.”
03-Nov-2022
“In Budget 2022, the government committed to examining a new minimum tax regime to ensure that all wealthy Canadians pay their fair share of tax. The 2022 Fall Economic Statement reaffirms this intent, and a detailed proposal and path for implementation will be released in Budget 2023.”
07-Apr-2022
“Budget 2022 announces the government’s commitment to examine a new minimum tax regime, which will go further towards ensuring that all wealthy Canadians pay their fair share of tax. The government will release details on a proposed approach in the 2022 fall economic and fiscal update.”
Minimum tax for high-income individuals
Reference Documents
The calculation of Quebec’s refundable tax credit already relies on the minimum tax when it is higher than the federal net tax. Therefore, we assume that this aspect of the promise has already been fulfilled.
« Une fois l’IMR [impôt minimum de remplacement] calculé, c’est ce montant qui sert au calcul de l’abattement du Québec au niveau de l’impôt fédéral. L’IMR est ni plus ni moins qu’un montant d’impôt qui, à une certaine étape, remplace celui résultant du calcul standard. Une fois ce remplacement fait, le reste des calculs se fait normalement, par exemple le calcul des crédits remboursables. »
Les dessous de l'impôt minimum de remplacement - SFL Expertise
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