There will be several new laws and regulations changing in Ontario next month that will affect both business owners and people across the country.
The Ontario government and the Canadian federal government will be making some updates next month, and here are some of the changes to keep an eye on.
Deadline for GST/HST tax breaks
While the GST/HST wasn't listed on your receipt during your last few trips to the grocery store, that will change next month when the temporary tax break expires.
The law introducing the goods and services tax/harmonized sales tax (GST/HST) was officially brought into force by the federal government in December. The temporary tax relief covers certain eligible everyday and holiday items such as children's clothing, most food and beverages, toys and holiday decorations.
The tax break, which went into effect on December 15, also applied to dine-in and take-out meals. However, the last day for the temporary GST/HST break is February 15, 2025.
Provincial Business Register Updates
If you are a business owner, you may want to be aware of an upcoming change to the Ontario Business Registry (OBR) filing process. From February 1, 2025, all companies registered in the OBR will be required to use a company key to conduct transactions.
This is a unique 9-digit code required to link a business to a ServiceOntario account. This change primarily affects companies that were founded before October 19, 2021 and did not previously require a company key.
For businesses registered on or after October 19, 2021, there will be no change to the current sign-up process, but for businesses registered after this date, a Business Key will be required to access your profile and complete sign-ins.
Once you have set up your profile, you can access various services, including renewing your business name registration, filing an annual return for your business, and updating your business information.
Amendment to the Income Tax Act
Back in December, the Minister of Finance and the Minister of National Revenue announced that the federal government would amend the Income Tax Act to extend the deadline for receiving donations for tax support in the 2024 tax year to February 28, 2025.
The extension is intended to mitigate the impact of Canada Post's four-week mail stoppage by giving donors more time to ensure their donations are received.
“Charities are at the heart of communities across Canada, helping those in need. “This extension recognizes the impact that Canada Post’s service disruption has had on their fundraising efforts and gives charities additional time to receive and process donations so they can continue their vital work,” said Dominic LeBlanc, then Minister of Finance and Intergovernmental Affairs affairs.
Federal tax assistance for donations to charities and other qualified recipients is expected to total nearly $5 billion in 2024.