2023-Nov-03
Deadline for Underused Housing Tax Filing Extended Again
The Canada Revenue Agency (CRA) has pushed back the deadline for compliance with the Underused Housing Tax (UHT), a new federal tax on vacant or underutilized housing. Taxpayers will now have until April 30, 2024 to file tax forms and pay any amounts owing for the 2022 calendar year. The deadline to file and pay the tax for 2023 remains April 30, 2024.
The UHT, which took effect at the start of 2022, imposes an annual tax of 1 percent on the value of vacant or underused residential real estate held by foreign homeowners. The tax is aimed at foreign nationals, and Canadians don’t generally have to pay the tax, but the measure includes broad filing requirements that may also affect many Canadian citizens and permanent residents if they hold property through partnerships or trusts.
Failing to file on time – even if only to claim an exemption – can result in penalties starting at $5,000 for each affected homeowner.
The CRA has new interactive tools to find out if you need to file and more information about the tax here.
In the latest twist, Ottawa is proposing to largely scrap filing requirements that would affect many Canadian and permanent resident homeowners and some Canadian corporations that have to file UHT. But the changes would only apply starting in 2023, excluding the year 2022, when the measure first came into effect. Details on that proposal can be found here.