Tax Facts 2021-2022

1 1Ta x Fa LLP ..kpmg .caCanada Revenue Agency ..canada .ca/taxesCanada Border Services Agency .. cbsa-asfc .gc .caDepartment of Finance Canada ..canada .ca/en/department-finance .htmlGovernment of Canada ..canada .caDepartment of Justice Canada ..justice .gc .caGovernment Electronic Directory Services ..geds-sage .gc .caEmployment and Social Development Canada ..esdc .gc .caStatistics Canada ..statcan .gc .caBank of Canada ..bankofcanada .caInnovation, Science and Economic Development Canada .. ic .gc .caGlobal Affairs Canada ..international .gc .caParliament of Canada ..parl .caSupreme Court of Canada ..scc-csc .caFederal Court of Canada ..fct-cf .gc .caTax Court of Canada ..tcc-cci .gc .caOrganisation for Economic Co-operation and Development ..oecd .orgAlberta Tax and Revenue Administration.

2 Tra .alberta .ca Alberta Ministry of Treasury Board and Finance .. finance .alberta .caBritish Columbia Ministry of Finance ..gov .bc .ca/financeManitoba Finance ..gov .mb .ca/financeNew Brunswick Finance and Treasury Board ..gnb .ca/financeNewfoundland and Labrador Department of Finance ..gov .nl .ca/finNorthwest Territories Department of Finance .. fin .gov .nt .ca/enNova Scotia Department of Finance and Treasury Board ..beta .novascotia .ca/government/ finance-and-treasury-boardNunavut Department of Finance ..gov .nu .ca/financeOntario Ministry of Finance ..ontario .ca/page/ministry-financePrince Edward Island Department of Finance ..princeedwardisland .ca/en/topic/financeRevenu Qu bec ..revenuquebec .caQu bec Minist re des Finances ..finances .gouv .qc .ca/index_en.

3 AspSaskatchewan Ministry of Finance ..saskatchewan .ca/government/ government-structure/ministries/financeY ukon Department of Finance ..yukon .ca/en/department-financeChartered Professional Accountants Canada ..cpacanada .caCanadian Tax Foundation ..ctf .caInternational Fiscal Association Canada ..ifacanada .orgUS Internal Revenue Service ..irs .govOrganization WebsiteTa x Fa cts2021 20224 PrefaceCanadian Filing and Payment Deadlines under COVID-19 ..xSubsidies Introduced in Canada in Response to COVID-19 ..xiFinancial Measures Introduced in Canada for Individuals in Response to COVID-19 ..xviiiTable of Contents 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

4 All rights of Contents 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights 1 IndividualsFederal and provincial / Territorial Income Tax Rates and Brackets for 2021 ..22 Federal and provincial / Territorial Non-Refundable Tax Credit Rates and Amounts for 2021 ..26 Quebec Non-Refundable Tax Credit Rates and Amounts for 2021 ..34 Quebec Refundable Tax Credit Rates and Amounts for 2021 ..37 Charitable Donations ..42 provincial Health Premiums ..46 Employment Withholdings Federal ..48 Employment Withholdings Quebec ..492021 Personal Income Tax Table ..50 Federal and provincial /Territorial Alternative Minimum Tax (AMT).

5 54 Combined Top Marginal Tax Rates For Individuals 2021 ..56 Individual Marginal Tax Rates for Salary 2021 ..57 Individual Marginal Tax Rates for Interest 2021 ..58 Individual Marginal Tax Rates for Capital Gains 2021 ..59 Individual Marginal Tax Rates for Eligible Dividends 2021 ..60 Individual Marginal Tax Rates for Non-Eligible Dividends 2021 ..62 Eligible Dividend Tax Credit Rates and Amount of Dividends that may be Received Without Incurring Tax in 2021 ..64 Non-Eligible Dividend Tax Credit Rates and Amount of Dividends that may be Received Without Incurring Tax in 2021 ..65 Automobiles Deductions and Benefits ..66 Canada Child Benefit ..68 Old Age Security Benefits ..70 Canada/Quebec Pension Plan Benefits ..72 Retirement and Savings Plans Contribution Limits ..74 Growth of a Single $1,000 Contribution in a Tax-Deferred Plan.

6 76 Growth of Annual $1,000 Contributions in a Tax-Deferred Plan ..77 Instalment Requirements ..78 Filing and Payment Deadlines and Penalties Personal Tax Returns ..816 Chapter 2 CorporationsFederal and provincial / Territorial Tax Rates for Income Earned by a CCPC 2021 and 2022 ..84 Combined Federal and provincial / Territorial Tax Rates for Income Earned by a CCPC 2021 and 2022 ..85 Substantively Enacted Income Tax Rates for Income Earned by a CCPC for 2021 and Beyond As at September 30, 2021 ..88 Small Business Income Thresholds for 2021 and Beyond ..92 Federal and provincial / Territorial Tax Rates for Income Earned by a General Corporation 2021 and 2022 ..94 Combined Federal and provincial / Territorial Tax Rates for Income Earned by a General Corporation 2021 and 2022 ..95 Substantively Enacted Income Tax Rates for Income Earned by a General Corporation for 2021 and Beyond As at September 30, 2021.

7 98 Integration Cost and Benefit of Cost and Benefit of Incorporation for Investment Income ..104 Capital Tax Rates Financial Institutions ..108 Quebec Compensation Tax for Financial Institutions ..110 Federal Research and Development (R&D) Tax Incentives ..111 provincial / Territorial Research and Development (R&D) Tax Incentives ..114 Net After-Tax Cost of Performing Research and Development (R&D) ..118 Ontario Corporate Minimum Tax (CMT) At a Glance ..126 Federal Income Tax Instalments ..128 provincial and Territorial Income Tax Instalments ..131 Filing and Payment Deadlines ..133 Payroll Source Deductions ..136 Table of Contents 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

8 All rights 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights of ContentsChapter 3 Income tax administration and policyPrescribed Interest Rates 2020 ..140 Prescribed Interest Rates 2021 ..141 Prescribed Interest Rates for Capital Taxes 2020 ..142 Prescribed Interest Rates for Capital Taxes 2021 ..143 Prescribed Interest Rates for Leasing Selected Federal Filing Deadlines ..146 Selected Federal Penalty and Offence Provisions ..150 Selected provincial /Territorial Penalty 4 InternationalForeign Exchange Rates Monthly Averages ..158 Foreign Exchange Rates Annual Averages ..160 Non-Resident Withholding Tax Rates for Treaty Countries.

9 162 International Social Security Agreements .. Federal Personal Income Tax Rates 2021 .. Federal Insurance Contribution Act (FICA) Tax Rates .. Federal Estate, Gift and Generation-Skipping Transfer Tax Rates ..180 Withholding of Tax on the Disposition of Real Property .. Federal Corporate Income Tax Rates 2021 .. State Maximum Personal and Corporate Tax Rates 2021 ..184 International Trade and Customs ..188 Personal Imports Personal Exemptions ..194 Personal Imports Currency, Gifts, Prohibited Goods and Cannabis ..1968 Chapter 5 Indirect taxesFederal and provincial / Territorial Sales Tax Rates ..200 Rebates for Public Service Bodies ..201 Elimination of Restrictions on QST Input Tax Refunds and HST Recapture Input Tax Credit Requirements for Large Businesses and Financial Interest Rates GST/HST and QST.

10 203 GST/HST and QST Filing and Assessment Periods ..204 Selected Penalty Provisions GST/HST and QST ..205 provincial Sales Tax/Retail Sales Tax Rates ..206 Prescribed Interest Rates PST/RST ..207 Chapter 6 Other taxes and leviesProvincial Payroll and Health Fund Taxes 2021 ..210 Workers Compensation 2021 ..213 provincial /Territorial Land Transfer Taxes, Registration Fees and Speculation and Vacancy Taxes ..214 Probate Fees 2021 ..222 Table of Contents 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. In response to the COVID-19 pandemic, governments have introduced temporary tax deadline extensions, subsidies, enhanced tax credits and other measures to support individuals and businesses throughout this public health emergency.