Canada’s Department of Finance announced, on 30 April 2024, that it tabled the “Notice of Ways and Means Motion to introduce an Act to implement certain provisions of the budget tabled in Parliament on 16 April 2024”. This legislation will advance many of the government’s key priorities in Budget 2024: Fairness for Every Generation.
The Budget Implementation Act, 2024 No. 1, includes the legislation for implementing the PIllar 2 global minimum tax – the Global Minimum Tax Act, among many other tax measures.
This legislation will enforce a 15% global minimum tax to ensure large multinational corporations pay their fair share wherever they do business. The Global Minimum Tax Act will be implemented for fiscal years of a qualifying Multinational Enterprise (MNE) group starting from or after 31 December 2023.
Other measures in the legislation include:
- Delivering two more major economic investment tax credits to attract more private investment, create more good-paying jobs, and grow the economy:
- The 30% Clean Technology Manufacturing investment tax credit; and,
- The up to 40% Clean Hydrogen investment tax credit.
- Extending the 15% Mineral Exploration Tax Credit for one year, which may provide $65 million to support mineral exploration investments.
