British Columbia: 2020 budget

Budget 2020: A Balanced Plan to Keep B.C. Moving Forward, was presented by British Columbia Finance Miniser Carole James on February 18, 2020. The Budget projects surpluses of $227m in 2020-2021, $179m in 2021-2022, and $374m in 2022-2023. Several tax measures were announced in the Budget. The notable measures are summarized below, and all of the tax changes can be found in the WK Budget Dispatch.

New tax bracket

Effective January 1, 2020, a new personal tax bracket is introduced. Where a taxpayer’s income exceeds $220,000, they will be subject to a new higher rate of 20.5% (up from 16.8%). Consequently, taxpayers will be eligible for a 20.5% charitable donation tax credit for donations over $200 with respect to their income that is subject to that higher rate.

Extension of credits

The training tax credits are extended for three years to the end of 2022.

Also, the farmers’ food donation tax credit is extended for three years to the end of 2023.

Changes to film incentives

Beginning July 30, 2020, within 60 days of incurring their first eligible expenditure, corporations must notify the government of their intention to claim the production services tax credit. Also, effective February 19, 2020, the accreditation certificate fee for the production services tax credit is increased to $10,000.

Provincal sales tax changes

Beginning July 1, 2020, carbonated beverages that contain sugar or sweeteners will no longer qualify for the PST exemption for food products for human consumption.

Also beginning July 1, 2020, new registration requirements will apply to Canadian sellers of goods and foreign sellers of software and telecom services with specified B.C. revenues exceeding $10,000. Further, Canadian sellers of “vapour products” must register if they cause vapour products to be delivered to consumers in B.C. These measures are intended to ensure that businesses involved in the digital economy are collecting sales taxes.

Effective February 19, 2020, electric aircraft are exempt from PST.

Effective February 19, 2020, there will be no restriction on the location of use with respect to the exemption for pollution control and waste management machinery and equipment.

Last, beginning February 19, 2020, real property contractors who perform value-added work to goods and then install the goods into real property outside B.C. can apply for refunds of the PST paid on those goods.