change in canada travel restrictions

We’re sorry, this site is currently experiencing technical difficulties. Please try again in a few moments. Exception: request blocked

Canada is easing its travel restrictions. Here's what you need to know

Vaccinated travellers will soon be able to skip the 14-day quarantine requirement.

Social Sharing

After more than a year of travel restrictions that have impacted most Canadians, the federal government has finally begun to ease the rules.

Ottawa has embarked on Phase 1 of a multiphase approach to lift its travel restrictions. However, the government warns that the process will be gradual — based on scientific data and not people's pleas to reopen the borders.

Here's what changes are happening soon and what to expect as more Canadians get vaccinated.

Phase 1: Vaccinated travellers can skip quarantine

Since the start of the pandemic, Canada has kept its borders closed to most non-essential traffic and required a 14-day quarantine for travellers allowed to enter. 

The government upped the ante in late February, mandating that travellers take a COVID-19 test upon arrival and that air passengers spend part of their quarantine at a designated hotel until they receive test results.

However, Ottawa announced on Wednesday that fully vaccinated travellers currently allowed to enter Canada will soon be able to skip the federal 14-day quarantine requirement, including the mandated hotel stay. Instead, they'll have to show proof of a negative pre-departure COVID-19 test and test negative for the virus upon arrival. 

The government has not yet set a date for the rule change but says it "hopes" to implement it by early July.

"These changes will only be made if the [COVID-19] case count continues to drop and if the vaccination campaign continues to go well," said Intergovernmental Affairs Minister Dominic LeBlanc in French at a news conference on Wednesday. 

Even with the changes, fully vaccinated travellers may still have to quarantine for 14 days if they enter a province that has a provincial quarantine requirement. Currently, the Atlantic provinces and the Northwest Territories require travellers — including those fully vaccinated — to quarantine. However,  New Brunswick , Prince Edward Island and Newfoundland and Labrador each aim to lift the requirement for vaccinated travellers at some point this summer. 

The pending federal quarantine rule change is welcome news for many vaccinated travellers — but not for those set to fly to Canada before it takes effect. 

"I feel like it's a little bit of a punishment and a slap in the face," said Fay Wallenberg, who grew up in Regina and now lives in Tuscany, Italy. 

Wallenberg, who's flying home on June 25 to visit her parents, has received both doses of the AstraZeneca vaccine.

She can't change her travel plans, she said, and will now arrive with the knowledge that vaccinated travellers will get to skip the quarantine hotel, potentially only a week later.

"I think it's horribly unfair," said Wallenberg. "I'm fully vaccinated."

On Wednesday, Health Minister Patty Hajdu said various government departments are still finalizing plans for the rule-change to ensure they will be "operationally ready" in July. 

Is my vaccine OK? What about my kids?

At this point, only travellers who received a vaccine approved by Health Canada — Pfizer, Moderna, AstraZeneca and Johnson & Johnson — will be allowed to bypass the 14-day quarantine. The government said it will assess and consider approving other COVID-19 vaccines at a later date.

Ottawa said it's also working on a vaccine passport for travellers, and that if it's not ready by the time the rules change, Canadian border officers will determine a traveller's status based on their documentation.

• Analysis Canada still lacks national guidance for fully vaccinated Canadians as travel restrictions ease

Hajdu couldn't yet say if unvaccinated children will get to skip the hotel requirement when travelling with fully vaccinated parents. Health Canada has so far only approved the COVID-19 vaccine for those  aged 12 and up . 

"We will not separate families who are travelling together," Hajdu said Wednesday on Power & Politics . But she provided no further details, saying they have yet to be worked out. 

What's next?

The government said it doesn't have a set timeline for when further travel restrictions will be eased.

"The metrics we're looking at are less date oriented and more disease-activity oriented," said Hajdu. Case counts, hospitalizations and vaccination rates will all play a part in dictating Ottawa's next moves, she said.

The government's next vaccination "goalpost" for easing border restrictions is to have 75 per cent of all eligible Canadians fully inoculated, said Canada's Chief Public Health Officer Dr. Theresa Tam. Currently, only seven per cent of Canadians aged 18 and older have received two doses.  

What about the Canada-U.S. border?

Canada's gradual approach to lifting travel restrictions has frustrated some U.S. politicians who want to see a plan for reopening the Canada-U.S. land border put into action now.

Recently, there's been speculation that the U.S. plans to go it alone and reopen its side of the border to non-essential traffic on June 22 — when the current agreement expires.

WATCH | A look at how Canada plans to ease its travel restrictions

Fully vaccinated Canadians can soon skip hotel quarantine

U.S. immigration lawyer Len Saunders says he's spoken to nearly a dozen U.S. Customs and Border Protection officers who say they've been told the U.S. land border is reopening on that date.

"If you call me two weeks today, I'll be shocked if the border is not reopened into the U.S.," said Saunders, whose office sits close to the Canadian border in Blaine, Wash. 

However, the U.S. government has denied the rumours. 

• Canada eyeing multi-stage approach to reopening the border to travellers
• Unlike NHLers, other athletes not getting border exemption from Canadian government

Further, Hajdu said she met with U.S.   Secretary of Health and Human Services Xavier Becerra last week and they agreed it would be beneficial for the two countries to come up with shared health protocols to ease travel restrictions. 

Either way, eager cross-border travellers may get more information soon. Prime Minister Justin Trudeau and U.S. President Joe Biden are set to discuss the issue at the current G7 summit in the U.K., according to New York congressman Brian Higgins.

"In the end, these are the only two decision makers that matter," Higgins said Thursday during  a panel discussion hosted by the Tourism Industry Association of Canada. "They can make a game-changing decision."

Corrections

• A previous version of this story mistakenly identified Alex Azar as the U.S. health secretary. In fact, the current U.S. secretary of health and human services is Xavier Becerra. Jun 11, 2021 10:21 AM ET

ABOUT THE AUTHOR

Business reporter

Based in Toronto, Sophia Harris covers consumer and business for CBC News web, radio and TV. She previously worked as a CBC videojournalist in the Maritimes where she won an Atlantic Journalism Award for her work. Contact: [email protected]

• @sophiaharrisCBC

Related Stories

Editor's Note

It's finally getting easier to travel to Canada , as fully vaccinated travelers will be allowed to present a rapid antigen test within one day of entering the country starting March 1, 2022. The change in testing requirements is part of a broader loosening of COVID-19 measures the Canadian government detailed Tuesday afternoon.

For more TPG news delivered each morning to your inbox, sign up for our daily newsletter .

"Today, the Government of Canada announced a series of adjustments to the current border measures, representing the beginning of a phased easing of travel restrictions," government officials said in a press release on Feb. 15. "The ability of the country to transition to a new phase at the border is a result of the actions of tens of millions of Canadians across the country who followed public health measures, including getting themselves and their families vaccinated."

Fully vaccinated travelers wishing to present a molecular test for entry may still do so as long as the test was taken within 72 hours of departure for Canada. At-home tests will not be accepted for entry.

"Taking a rapid antigen test at home is not sufficient to meet the pre-entry requirement – it must be authorized by the country in which it was purchased and must be administered by a laboratory, healthcare entity or telehealth service," per the release.

In addition to accepting a rapid test in lieu of a PCR test, fully vaccinated travelers are subject to randomly selected testing upon arrival. Unvaccinated travelers must continue to test on arrival with a subsequent test on day eight and a 14-day quarantine.

Today's change in travel restrictions comes less than two months after government officials urged Canadian citizens to avoid any nonessential travel outside of the country due to the omicron variant, which is no longer the case.

While testing will still be required, per this update, U.S. citizens will be able to submit a rapid antigen test instead. Antigen tests are easier to acquire and don't take as long to receive results, which should make it much easier for travelers to visit Canada.

The overall relaxation of travel-related COVID-19 restrictions appears to be a result of declining COVID-19 numbers across its provinces, which recorded a 24% decrease in the average number of new weekly cases, according to the Feb. 11 weekly epidemiology report published by the government.

Individual provinces have eased local restrictions, including Quebec and Ontario, the latter of which will no longer require proof of vaccination to access indoor spaces beginning March 1, though mask requirements remain in place.

Related: Travel is getting easier: Here are some of the countries that have eased COVID-19 protocols

• Stanley Park
• Taylor Swift
• Local Change location
• Entertainment
• Perspectives

TV Programs

• Global National
• The Morning Show
• Video Centre
• More…
• Email alerts
• Breaking News Alerts from Global News
• License Content
• New Brunswick
• Peterborough

Close Local

Your local region.

• All event types

Quick Search

Trending now.

Add Global News to Home Screen Close

Instructions:

• Press the share icon on your browser
• Select Add to Home Screen

Comments Close comments menu

Want to discuss? Please read our Commenting Policy first.

Travel restrictions and Omicron: What’s changing in Canada, U.S.

If you get Global News from Instagram or Facebook - that will be changing. Find out how you can still connect with us .

This article is more than 2 years old and some information may not be up to date.

The United States on Thursday became the latest country to announce travel requirement changes in an effort to curb the spread of the new Omicron COVID-19 variant — which will affect Canadian travellers.

The changes, announced by President Joe Biden , include a new testing requirement for travellers flying into the U.S. The testing measure starts on Monday .

The move comes days after a handful of countries, including Canada, quickly clamped down on travel and imposed bans on African countries, as fears around the new variant of concern grew.

Here are the latest travel rules imposed by both the U.S. and Canada.

U.S. travel changes

Biden’s announcement Thursday includes a requirement for all air travellers entering the U.S. — including those from Canada — to be tested for COVID-19 a day before boarding their flight, regardless of their vaccination status.

Previously, people who were fully vaccinated would have been able to present a negative test taken within 72 hours of flying to the U.S.

“It doesn’t include shutdowns or lockdowns, but widespread vaccinations and boosters and testing and a lot more,” said Biden.

The president however made no mention of any changes to current land border travel requirements between Canada and the U.S.

The new rules come less than a month since the U.S. first opened its land border to fully vaccinated Canadians. In mid-November, the Canadian government also waived PCR testing requirements for Canadians returning from the U.S. for any trip less than 72 hours.

A background briefing released by the White House ahead of Biden’s announcement also outlined other components of the new U.S. strategy against COVID-19.

The U.S. plans to expand access to booster shots and accelerate access to vaccines to kids under the age of five. It also plans to create new rapid response teams to combat the spread of Omicron outbreaks, and to ship 200 million more vaccine doses abroad within the next 100 days.

Last week, the U.S. also announced travel bans of its own on several countries, including South Africa, where the virus was first detected.

Canadian travel changes

Canada was quick to announce a wide array of new travel restrictions following the discovery of Omicron.

The federal government on Tuesday banned entry to foreign travellers who have been to Nigeria, Malawi and Egypt in the last two weeks — adding to the list of African countries facing travel bans, like South Africa, Mozambique, Namibia, Zimbabwe, Botswana, Lesotho and Eswatini, that were first announced on Nov. 26.

Canadians and permanent residents —  who have the right to return to Canada — who have travelled through any of the listed countries in the past two weeks will still be allowed to return, though they must be tested at the airport and would have to quarantine while awaiting their test results.

• Is the ‘Seinfeld theory’ coming for Justin Trudeau’s political future?
• Teen in life-threatening condition after riding top of GO train: Toronto police
• How capital gains tax changes could affect some family doctors
• Thousands pack Surrey streets for Vaisakhi celebrations 

According to Transport Minister Omar Alghabra, the COVID-19 testing requirement for those returning to Canada would still apply even to those who are fully vaccinated, and any tests administered in the 10 listed countries would not be accepted.

Federal ministers also announced new additions to the testing requirement Tuesday, adding that anyone now coming into Canada from a country aside from the United States would have to be tested on arrival and must isolate and await their results.

Alghabra and Health Minister Jean-Yves Duclos said Wednesday that expanding those testing requirements to American travellers was still not out of the question, though not all Canadian airports would have the capacity to begin such testing for arriving air travellers.

“The speed of implementation will also vary in local airport conditions,” he said. “There are airports in Canada which can start doing that really quickly because there is excess capacity. Other airports will take a bit more time.”

That on-arrival test would be paid for by the federal government, though the pre-departure test must still be taken before arriving in Canada, Duclos said. Unvaccinated travellers would remain the same, however, with a requirement for a 14 day quarantine, and a need to get tested upon arrival and again on day eight of their quarantine.

Duclos said that the testing requirement was set to come into effect in the “next few days,” and that he expects more than 30,000 tests to be administered at Canadian airports every day.

Industry groups have since warned that Canada’s latest testing plan could cause “chaos” at airports across the country.

Daniel Gooch, president of the Canadian Airports Council, told The Canadian Press that airports would not be able to test overseas arrivals without long waiting times.

“Do we really want people waiting for hours for a test in a customs hall?” he told the Press on Wednesday.

“We want to avoid chaos. And we want to ensure that travelers who have booked trips are comfortable to travel.”

So far, a total of nine cases of Omicron have been found in Canada since Ontario’s announcement of its first two cases Sunday. Alberta was the most recent province to announce new cases of the variant, with two more reported on Wednesday.

The U.S., on the other hand, announced Wednesday it had detected its first case of the variant in California, while at least 20 other countries — including the U.K., Denmark, Australia and Israel — have since reported Omicron infections after South African scientists identified the variant last week.

Cases of COVID-19 in South Africa reportedly doubled on Wednesday to more than 8,500, while the country’s National Institute for Communicable Diseases said that the variant had now overtaken the Delta variant among the samples it was analyzing.

Experts uncertain about travel bans

Public health officials and experts have warned against the rush to slap travel bans and restrictions amid Omicron’s spread.

Preliminary data from South Africa suggests Omicron could potentially be more transmissible and have a higher chance to cause re-infection in individuals.

Experts were quick to point out several things, however, including a lack of definitive evidence that the variant was deadlier than the current dominant strain of COVID-19 and the low vaccination rates in South Africa.

While many cautioned there is a lack of data surrounding the variant of concern, countries were quick to close their borders to African nations — prompting a harsh backlash from the World Health Organization and other public health experts.

The WHO this week warned countries to not impose travel bans and called on them to follow science and international health regulations.

Experts have pointed to travel bans as now being ineffective at this stage as the Omicron variant would have most likely spread beyond the borders of the targeted countries.

“Unfortunately for this Omicron variant, it’s too late at this stage, I think. It’s already here,” said Julianne Piper, a research fellow and project coordinator with the Pandemics and Borders research project at Simon Fraser University, in an interview with Global News earlier this week.

— w ith files from The Canadian Press, Reuters and Global News’ Saba Aziz and Leslie Young

Sponsored content

Report an error, subscribe here.

Create a free account

• Gain access to free articles
• Daily free newsletter(s)
• Ability to comment on most articles
• Build your 3D avatar and gain points

• Everything in the Free plan
• Ad-free reading and browsing
• Unlimited access to all content including AI summaries
• Directly support our local and national reporting and become a Patron
• Cancel anytime.

Forgot my password

Please enter your email and we'll send you a new password request code.

Please complete your profile to unlock commenting and other important features.

, time to level up your local game.

We have a favour to ask.

MTL Blog is looking to transition to a more sustainable future where we are no longer as reliant on advertising revenue. Upgrade now and browse MTL Blog ad-free and directly support our journalism.

This is a Pro feature.

Time to level up your local game with mtl blog pro..

Canada’s Travel Rules Have Changed — Here’s What You Need To Know

The changes officially go into effect today.

Welcome to Canada sign at Canadian border.

Attention all travellers! Entering Canada just got a little more difficult. As of Tuesday, July 19, the Government of Canada is re-establishing mandatory random COVID-19 testing for anyone entering the country, fully vaccinated or not.

Yes, not long after Transport Canada suspended random testing at Canadian airports last month, the feds are bringing it back. However, things are going to look a little different this time around.

\u201c(1/3) Mandatory random #Covid19 testing for fully vaccinated air travellers entering Canada\u2019s 4 major airports in Vancouver, Calgary, Toronto (Pearson) and Montreal resumes July 19, 2022.\nLearn more: https://t.co/02tzyQdi47\u201d — Health Canada and PHAC (@Health Canada and PHAC) 1657820266

In a recent news release, the government stated: "Mandatory random testing will resume as of July 19, 2022, for travellers who qualify as fully vaccinated, arriving in Canada by air to the four major Canadian airports, Vancouver, Calgary, Montreal and Toronto."

"To qualify as a fully vaccinated traveller to Canada, travellers must have been vaccinated with a primary series of a COVID-19 vaccine accepted by the Government of Canada for the purpose of travel at least 14 calendar days before entering Canada."

While mandatory COVID-19 testing previously took place at the airport, testing will now take place outside airports.

The federal government stated that those who qualify as either fully vaccinated, partially vaccinated or unvaccinated will undergo a random COVID-19 test off-site at either an "in-person appointment at select testing provider locations and pharmacies, or a virtual appointment for a self-swab test."

How will you know if you're randomly selected and what method of testing will you have to complete?

The Government of Canada said that travellers entering the country by air will receive an email notification within 15 minutes of completing their customs declaration.

"The email will contain information to help them arrange for their test with a testing provider in their region."

Travellers entering Canada by air who are not considered fully vaccinated must continue to test on Day One and Day Eight of their compulsory 14-day quarantine.

"Moving testing outside of airports will support testing for travellers arriving by air while still being able to monitor and quickly respond to new variants of concern, or changes to the epidemiological situation," the feds mentioned in the news release.

As for travellers entering Canada by land, mandatory random testing will continue at land border points of entry.

MTL Blog spoke with the Public Health Agency of Canada's Senior Media Relations rep, Tammy Jarbeau with some questions regarding some uncertainties surrounding the feds' decision to re-establish random COVID-19 testing.

When asked how the federal government will verify whether or not those selected to undergo a COVID-19 test, Jarbeau stated. "The Public Health Agency of Canada (PHAC) receives information from Canada Border Services Agency daily regarding travellers who have entered Canada, including whether these travellers were selected for mandatory random testing (MRT).

"On Day 4 after entry into Canada, all travellers selected for MRT receive a compliance promotion email reminding them of the importance of completing the test. On Day 5 post-entry, travellers selected for MRT who appear non-compliant with the testing requirement (e.g. PHAC does not have a record of a test being submitted to a test provider) receive a call to verify compliance."

Failure to comply can lead to penalties and fines, Jarbeau said. "Travellers may face penalties and fines of up to $5,000 (plus applicable surcharges) if they fail to meet all of the requirements."

This article's cover image was used for illustrative purposes only.

• Canada Is Extending Travel Restrictions Even Longer - MTL Blog ›
• Canada Is Ending Pre-Arrival Testing For Fully-Vaccinated ... ›
• Canada Will Bring Back Random COVID-19 Testing For Fully ... ›
• Justin Trudeau Got Called Out For Going Maskless Aboard A Train - MTL Blog ›
• Justin Trudeau Got Called Out For Not Wearing A Mask Aboard A Train - MTL Blog ›
• 5 Countries With Travel Warnings Issued By The Government Of Canada - MTL Blog ›
• 8 Countries With Travel Warnings Issued By The Government Of Canada - MTL Blog ›

Already have an account? Log in

Create an account to keep reading.

1. choose a plan.

Limited access to free articles

Unlimited access to all content, AI summaries, ad-free browsing and directly support our reporting by becoming a Patron 🙏. Cancel anytime.

2. Create your account

Canada has issued a travel advisory for this caribbean destination due to a state of emergency.

• Skip to main content
• Skip to "About this site"

Language selection

Search travel.gc.ca.

Help us to improve our website. Take our survey !

Travel advice and advisories by destination

COVID-19: travel health notice for all travellers

The Government of Canada’s official source of travel information and advice, the Travel Advice and Advisories help you to make informed decisions and travel safely while you are outside Canada. Check the page for your destination often, because safety and security conditions may change. See Travel Advice and Advisories – FAQ for more information.

Where are you going?

Take normal security precautions

Exercise a high degree of caution

Avoid non-essential travel

Avoid all travel

Travel advice from other countries

Travel advice is also provided by the governments of Australia , New Zealand , the United Kingdom and the United States .

Risk Levels

  take normal security precautions.

Take similar precautions to those you would take in Canada.

  Exercise a high degree of caution

There are certain safety and security concerns or the situation could change quickly. Be very cautious at all times, monitor local media and follow the instructions of local authorities.

IMPORTANT: The two levels below are official Government of Canada Travel Advisories and are issued when the safety and security of Canadians travelling or living in the country or region may be at risk.

  Avoid non-essential travel

Your safety and security could be at risk. You should think about your need to travel to this country, territory or region based on family or business requirements, knowledge of or familiarity with the region, and other factors. If you are already there, think about whether you really need to be there. If you do not need to be there, you should think about leaving.

  Avoid all travel

You should not travel to this country, territory or region. Your personal safety and security are at great risk. If you are already there, you should think about leaving if it is safe to do so.

Canada travel requirements 2024: What travelers need to know

We aim to keep this post updated about Canada travel in 2024 with official Canada travel restrictions, requirements, and health and safety guidance. Our goal is to help you make informed decisions so you can travel confidently, safely, and responsibly in this new post-pandemic world of ours.

As restrictions vary based on the traveler’s citizenship, we will focus primarily on rules affecting U.S. citizens.

Last update: January 28, 2024. Originally published: September 2021.

Disclosure: This post contains some affiliate links. If you make a purchase through one of our links, we may receive a small commission, at no additional cost to you.

Photo credit: Kelly January 2024: “Canada is an extremely diverse and safe Country to visit at all times of the year. Travel and daily life is back to normal, however, many employees continue to work remotely and employers continue to have a difficult time finding staff If travellers fall ill while visiting Canada, there are plenty of walk-in clinics and emergency rooms in every Canadian city, making healthcare easily accessible. However, it is still wise for travellers to purchase health insurance prior to visiting.” – Kelly of Just One Passport , resident of Canada

At the end of the post, we share more on-the-ground perspectives from local residents and travelers to Canada so you can get a true sense of what to expect.

Table of Contents

Is Canada open for travel? Can I travel to Canada right now?

As of October 2022, Canada travel restrictions for all travelers entering Canada by air, land or sea include:

• Proof of COVID-19 vaccination is not required
• COVID-19 pre-entry and arrival tests are not required
• Quarantine is not required
• ArriveCAN is not required
• Pre-boarding tests for cruise passengers are not required
• Health checks to board planes and trains are not required
• Wearing masks on planes and trains is not required but strongly recommended

Quarantine rules in Canada: What happens if I get Covid?

Foreign tourists who  test positive for Covid while in Canada should self-isolate immediately. Travelers may be required to cover costs of quarantine accommodations.

Those with severe symptoms are advised to call 911 or the local emergency number in Canada.

Canada Proof of Vaccination Requirements for Dining, Travel, and other services

You might be wondering: Do I need a vaccine certificate or Covid test to enter restaurants, public transit, and other services in Canada?

As of June 2022, proof of vaccination is no longer required to board a plane, train or cruise ship when traveling within Canada. Generally it is not required to enter businesses or restaurants.

Each province or territory has the authority to require a proof of vaccination each situation.

Can I travel to Canada in April 2024? Can I travel to Canada this Spring?

Travel to Canada in April is possible for foreign travelers. Read on for details and check back for updates.

What is it like to fly to Canada right now? YYZ Toronto Pearson International Airport? YVR Vancouver International Airport? Masks are no longer required but still strongly recommended. The airports are using enhanced cleaning procedures and hand sanitizer is available throughout the terminals.

As of October 2022 , all persons arriving in Canada will no longer be subject to randomized testing at airports . 

Using ArriveCAN is now optional for travelers flying into international airports to submit an Advance CBSA Declaration to save time upon arrival in airports like Toronto, Vancouver or Montréal.

What is it like to drive into Canada right now? Travelers can enter Canada during open hours at land borders . Required documents must be shown at the border.

Check Canada-US border wait times here.

Do I have to quarantine when traveling to Canada? No. Quarantine upon arrival is no longer required in Canada. Persons who test positive for Covid in Canada are asked to quarantine. See above for details.

Does Canada check COVID-19 symptoms of incoming travelers? No. Health screening procedures are no longer required to enter Canada.

Does Canada require a negative Covid 19 test for travelers? No. Covid pre-entry tests and arrival tests are no longer required.

Does Canada require a proof of Coronavirus vaccine for travelers? No . Proof of vaccination is no longer required in Canada.

Do I still need to provide a negative Covid test or quarantine if I have been vaccinated? No. Travelers are no longer required to provide a negative Covid test or quarantine to enter Canada.

Is a booster shot required for travel to Canada? At this time, booster shots are not required in Canada. There is currently no expiration period set for the validity of vaccinations.

What Covid testing options are available for travelers in Canada? U.S. citizens can obtain a COVID-19 test from provincial health authorities or private facilities in Canada.

The cost for private testing varies depending on the location and can exceed $300. Rapid tests for $60 with results in 30 minutes are available by appointment near Toronto Airport .

What healthcare options are available to travelers in Canada who get the virus? Canada hospitals and clinics are open. Canada’s universal healthcare does not pay for visitors.

Testing centers are also available for foreign visitors in some provinces and territories in Canada.

For travel insurance that covers Covid, check out Nomad Insurance by Safety Wing >

What service businesses and restaurants are open in Canada? Essential services, restaurants, bars, and retail shops are open in Canada. Some limitations, such as proof of vaccination requirement, may still be implemented in some provinces. 

Check here for restrictions in each province.

Are face masks required in Canada? Wearing of face masks is no longer required in Canada but still recommended.

Are buses running in Canada? Public transportation is available throughout Canada. 

Will Canada impose new Covid restrictions? What’s next is difficult to predict. Historically, most countries impose COVID-19 restrictions when strains on the health care system might become unsustainable. Canada has been relatively proactive and “strict” on preventive Covid measures.

How has the Coronavirus impacted Canada?

The coronavirus pandemic has caused a recession and increased unemployment in Canada. Tourism was hit especially hard.

Canada experienced a surge in cases with the Omicron variant. Many provinces reintroduced restrictions. As the situation came under control, Canada started easing travel restrictions.

As of October 2022, Canada ended all travel, testing, and border requirements and restrictions related to COVID-19.

Canada initially started reopening for tourism in summer 2021. As of September 2021, fully vaccinated foreign travelers have been allowed to visit the country without undergoing quarantine.

Canada began COVID-19 vaccination in December 2020. Currently, more than 3/4 of the total population has been fully vaccinated.

For the current situation in Canada, including: total COVID-19 positive cases; total cases in Canada; and COVID-19 testing in Canada, please see the Government of Canada website .

What should you pack for safely traveling in Canada?

😷 Face Masks – Face coverings are recommended in crowded public places. Find N95 masks at Bona Fide > or designer options at Vida >

💊 Medicine – Bring enough prescription and over-the-counter medication for your entire trip to avoid trips to the clinic.

💳 Vaccine Card Holder – Protect that paper CDC card when traveling abroad (if your country doesn’t offer a digital version). Get a simple plastic protector > or Vegan leather clippable > or Leather passport + card combo holder >

👃 Covid self-test – The most studied rapid antigen self-test with FDA emergency authorization.  NOT valid to enter countries. Use for your own peace of mind. Order from CVS > or Walmart >

💧 Sealed water bottle – Make sure your reusable water bottle has a lid that’s not exposed to the air. We use one of each of the following: Shop insulated water bottles with protective lid > Shop water bottles with purification filter and protective lid >

✈️ Travel insurance that covers Covid – We’ve started using Nomad Insurance by Safety Wing for affordable evacuation, international medical, and trip coverage.

What do Canada locals and recent travelers say about visiting Canada now?

What is it like to visit Canada right now? It’s our goal to provide regular updates here from real people on the ground, to help potential visitors know what to expect.

The following are subjective opinions only. Official travel guidance can be found above.

September 2023 – Ryan of WaylessTravelers , Canadian: “The current state of tourism is back to normal, like during pre-Covid times. The multiple summer and fall festivals have returned to Montreal, including F1 weekend, Just for Laughs, Jazz festival etc… Restaurants are also very lively and full. 

All the local attractions, restaurants, concerts, malls are back to normal operations. No restrictions (masks/gloves/testing) are imposed.

We do recommend to reserve activities and restaurants ahead of time as we have noticed that they do book up usually a few days in advance. We believe this is because a lot of Canadians are preferring to travel more locally due to still some hesitancy of traveling abroad.”

May 2023 – Nick Rosen of The World Overload , American visitor:  “I flew to Quebec City and Montreal for a one week vacation in May 2023. There are currently no travel restrictions but some locals and visitors continue to follow Covid guidelines including masks and safe distances. There is easy access to healthcare and testing.

All attractions and food services continue to operate for tourism. Hours may vary depending on day/weekend. Please check ahead when scheduling. Be aware that summer is the time when most construction and repairs are done by the cities you will be visiting.”

January 2023 – Melissa from My Beautiful Passport , Canadian: “Tourism in Ontario is picking up overall, with most events & festivals resuming in 2023, if they didn’t already resume in 2022. 

Canada appears ready to welcome tourists back into the country. Niagara Falls and other popular Canadian destinations are lively, restaurants and attractions are open, and people are ready to explore again, wearing masks indoors as encouraged. Hospitals are not currently overwhelmed.”

September 2022 – Michelle, Intentional Travelers, US citizen: “We flew from the US to Canada for a conference in Montreal, Quebec. I submitted our ArriveCAN information a couple days before the flight using the website. It was pretty simple to input our passport number, vaccine dates, and upload a photo of our CDC vaccine cards. Then there was a form for trip details. There was a quick Covid self-assessment form asking about fever, cough, or difficulty breathing. Confirmation included a six-digit code and QR code that we printed and brought to the airport.

After all that, we had more online processes to complete for both airlines on our itinerary (United and Air Canada), including uploading our CDC vaccine cards again. Air Canada’s site did not accept our vaccine card image, but it wasn’t a problem, I guess because we had ArriveCAN done.

To board the flight from US to Canada, we only had to show our passport and ticket. On arrival in Montreal, we only ‘flashed’ our ArriveCAN confirmation to an agent on our way to the machines where we scanned our passports and completed immigration questionnaires, which included just one question about having any Covid symptoms, and took a picture. Arriving around midnight, the process took less than 15 minutes.

We were fortunate all our bags arrived. The baggage claim looked like a luggage graveyard with hundreds of unclaimed suitcases everywhere!”

May 2022 – Mayuri of Canada Crossroads , Canadian resident: “In my province (Alberta, home to the Canadian Rockies) domestic tourism has been flourishing. All the sightseeing spots are open, but some have restricted hours. 

Since February (in Alberta, and from April nationwide) things are open, no restrictions in terms of social distancing, masking, access to medical care, restaurants, stores and hotels. In fact many airports are busier than usual (including the country’s busiest Toronto airport – just flew last week). I feel we need to be a little more prepared for summer tourism as many international visitors are wanting to explore Canada.”

March 9, 2022 – Samantha of Continuous Roamer , Canadian resident: “Domestic travel in Canada is straightforward since there are no extra requirements once you have entered the country. However, mask wearing is necessary and some provinces still require a vaccine passport.

The vaccine passport has been removed in Ontario in March. Capacity in Ontario restaurants is now at 100% so it is easier to get a table. Although, free antigen covid tests are extremely difficult to access at pharmacies in Ontario. British Columbia still requires the vaccine passport, therefore lines are longer to enter some establishments while your pass and ID are checked.”

January 20, 2022 – Haley Blackall Travel , Digital Nomad:  “My partner and I visited family and worked online in Kelowna BC for 2.5 months from mid-November 2022 to end of January 2022. Tourism in this region of Canada is low, due to winter conditions especially for international visitors. Make sure you have all the required documentation upon arrival, because airline personnel are doing proper checks. If you arrive in Canada from an international destination and are unvaccinated, there is a smooth running process for a mandatory Covid-19 test at the airport upon arrival, and the ArriveCAN app is easy to navigate in which the government keeps a close eye on contact tracing and quarantine requirements. Canadians have quick access to healthcare, including testing for antigen and PCR. After restaurants offering takeout and delivery services only at the beginning of the pandemic, dining in is becoming more popular. Besides the use of masks, life is getting back to normal in Canada.”

January 2022 – Mary from Brbymary, French traveler: “I flew to Vancouver for a week [from Ireland] to visit my partner’s family. Everything was well organised through ArriveCan app. Testing at the airport was easy although a bit behind and people respected rules in general. Plan some additional time to do tests at the airport and to do tests on arrival even if you have an appointment.”

December 2021 – Federica of Globetrottoise , Canadian nomad:  “I would say Canada is a pretty safe destination at the moment, especially outside the big cities. I’ve been road tripping around the Yukon, British Columbia and Alberta in the past few months and always felt safe and able to enjoy most attractions, from museums to national parks.  Canada is open to vaccinated travellers only and health regulations are in place in most public places. Masks are mandatory inside almost everywhere and in some provinces the access to cafes restaurants, movie theaters, libraries, etc is possible only with a valid proof of vaccination. Attractions are mostly open everywhere and access to covid testing is pretty easy (but quite pricey).”

November 12, 2021 – Nicole of Traveling BC , Canadian citizen: “While businesses are still operating under restrictions, in general, many rules have lifted and now it’s ‘full steam ahead’ in the tourism industry. Some touristy areas (the coasts and the Rockies) even became quite busy over the summer, since everyone wanted to go on a much-needed vacation. If you visit, you’ll have to show a negative COVID test and be required to wear a mask, socially distance, and show your vaccination passport!

Most people and businesses follow the restrictions and around 75% of people are fully vaccinated, although compliance with restrictions and vaccinations varies between provinces and cities. Accessing COVID testing is easy and quick, although you’ll have to pay for the test if you’re traveling. A lot of healthcare has moved to online appointments, and some hospitals are still overwhelmed in areas with lots of COVID cases. Businesses are open to tourists, but many operate under reduced hours, lower capacities and may have halted certain services/activities due to COVID. You will often have to book activities online or by phone, and make sure to wear a mask and bring proof of vaccination, or businesses will deny you entry.”

November 2021 – Chris, American digital nomad: “I flew to Newfoundland for one month in October and November of 2021. Everything seems to be open again, though every place where you would take off a mask (such as a restaurant) requires you to show proof of vaccination. People seem very respectful and friendly, happy to show you around. There is voluntary contact tracing check-ins at a lot of locations. There don’t seem to be long lines anywhere. Testing is free and readily available.”

October 9, 2021 – Nicole, Go Far Grow Close , Vancouver BC, Canadian resident:  “Visitors are very much welcome. There are strict regulations for visitors to enter Canada (fully vaccinated) so we know that they are as safe or safer than the locals. So long as they follow the rules – wear masks indoors – no one cares. I feel that we are very travel ready in Canada. If you feel ill, there are free drive through covid testing sites. Hospitals are available. Local attractions, food services, and all amenities are open so long as you wear masks indoors (or when you get up in a restaurant), social distance and follow whatever other rules might be in place. Restaurants are still not at full capacity but getting there. Movie theatres are open. We eat out regularly, go to movies, and do not feel restricted.”

September 2021 – Kathy, American traveler: “We planned to spend two months in British Columbia, Canada. We had to show proof of vaccination and have a negative COVID test within 72 hours of crossing. We managed to get a test at a local CVS pharmacy (for free) and got our results in about 36 hours. Whew! There is another place to get a test in Seattle with guaranteed results but they cost $165 each. We also had to go to the website ArrivCan.com and answer questions and download our vaccine cards. Finally, in the early morning hours of August 9th we arrived at the Canadian Border just south of Vancouver, BC at around 4:30 a.m. There were approximately 20 cars/trucks in two lines. Unfortunately, the line we picked took forever so when it finally turned 6:00 a.m. another agent opened a new gate and we were there and across the border in about 10 minutes. We have now been in BC Canada for over a month. There are very few U.S. citizens here but lots of traveling Canadians. In fact, their COVID numbers have spiked so it is now a requirement to wear masks in stores/grocery stores and entering and leaving restaurants. No problem. We feel safe doing that and know that even though there is some resistance, most Canadians are fully vaccinated. In fact, as of August 13th restaurants and bars and other certain businesses now require that people show proof of vaccination to enter. I am in complete support. We feel grateful we were able to spend some of our summer in this beautiful country.”

Planning a trip to Canada?

Check out our other Canada travel resources: – The Scenic Route: Kelowna to Banff – The Best of Banff on a Budget – Kelowna: British Columbia’s Hidden Gem – Montreal, Quebec Summer Trip Guide

– 5 Awesome Things to Do in Vancouver, BC in Summer

If you have questions or updates about travel to Canada during the Coronavirus crisis or post-pandemic, please let us know in the comments below.

~ Pin this post for later or share with friends ~

Disclaimer: Please note, travel restrictions change frequently. Readers must take responsibility for verifying information through official sources like the State Department and CDC, in respect to their specific situations. No responsibility can be accepted by Intentional Travelers for action or inaction as a result of information provided through IntentionalTravelers.com. Any information provided here is issued as general information only.

Similar Posts

Kelowna: British Columbia’s Hidden Gem

We love British Columbia, Canada but Kelowna wasn’t even on our radar until we had the opportunity to pass through on our scenic drive to Banff– and we’re really glad we made the stop! The main summer attractions in Kelowna are outdoor activities and wineries. Since it’s just a one-hour flight from Seattle on Alaska Air,…

Hawaii travel requirements 2024: What travelers need to know

We aim to keep this post updated about Hawaii travel in 2024 with official Hawaii travel restrictions, requirements, and health and safety guidance. Our goal is to help you make informed decisions so you can travel confidently, safely, and responsibly in this new post-pandemic world of ours. At the end of the post, we share…

Our Ultimate Trip Wish List: 10 Travel destinations we dream of

It seems that every time we travel, wanderlust kicks in and our list of places to visit only gets longer! As digital nomads, we are fortunate to visit new destinations around the world each year. Honestly, we are content and don’t feel that there’s any one particular place that’s eluding us. There’s nowhere we have…

Vietnam travel requirements 2024: What travelers need to know

We aim to keep this post updated about Vietnam travel in 2024 with official Vietnam travel restrictions, requirements, and health and safety guidance. Our goal is to help you make informed decisions so you can travel confidently, safely, and responsibly in this new post-pandemic world of ours. Vietnam is a destination close to our hearts….

Philippines travel requirements 2024: What travelers need to know

We aim to keep this post updated about Philippines travel in 2024 with official Philippines travel restrictions, requirements, and health and safety guidance. Our goal is to help you make informed decisions so you can travel confidently, safely, and responsibly in this new post-pandemic world of ours. As restrictions can vary based on the traveler’s…

Safe Travels: Personal security tips every smart traveler should use

When we first starting traveling, there was admittedly some fear. How can we know who to trust in a foreign place? What if we get robbed? Is it safe to visit a country with high crime rates? But the more travel experiences we had – and thanks to our safety and security training for Peace…

Canada is still requiring a negative covid test 72 hours before embarkation when on a cruise ship entering any Canadian ports. This has not been changed. The change is for land ,and air and sea other than a cruise ship

Thank you for this clarification. We have updated our post to better reflect requirements for cruise ships.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed .

Border restrictions to enter Canada extended until at least Sept. 30

The federal government announced Wednesday all existing border restrictions to enter Canada will remain in place until at least Sept. 30.

That means foreign travellers will still need to provide proof of being fully vaccinated to enter the country and unvaccinated Canadians or permanent residents will need to provide a molecular COVID-19 test taken prior to entering and quarantine for 14 days upon arrival.

The government is also still requiring all travellers, regardless of citizenship, to upload their vaccine information and travel documents to the ArriveCan app.

The restrictions were last extended on May 31 .

The announcement by the Public Health Agency of Canada (PHAC) indicates a prolonged pause of random testing at all airports until mid-July for the fully vaccinated.

That pause was implemented on June 11 as Ottawa’s attempt to mitigate congestion and delays at airports caused by heightened travel demand and staffing shortages.

Their stated intention is to move COVID-19 testing for air travellers outside of airports to “select test provider stores” such as pharmacies or by virtual appointment.

“Moving testing outside of airports will allow Canada to adjust to increased traveller volumes while still being able to monitor and quickly respond to new variants of concern, or changes to the epidemiological situation,” the PHAC statement reads.

On June 11, the government also announced it was dropping the vaccine mandate for domestic and outbound international travellers effective June 20.

Many industry organizations and opposition MPs have long called on the government to drop various border measures, namely duplicative processes that slow down travel, arguing they have the potential to stifle Canada’s already depleted tourism sector.

In response, Canada’s ministers of health and tourism continue to reinforce that while the epidemiological situation in Canada has improved, the pandemic still exists.

“As we move into the next phase of our COVID-19 response, it is important to remember that the pandemic is not over. We must continue to do all that we can to keep ourselves and others safe from the virus,” Health Minister Jean-Yves Duclos said in the Wednesday statement.

He added that Canada’s border measures remain “flexible” and “guided by science and prudence.”

(1/2) The #GoC is extending current border measures for travellers entering Canada until at least Sept 30, 2022. Learn more: https://t.co/EjE5mqb0wx pic.twitter.com/FJ3sKJNvXe — Health Canada and PHAC (@GovCanHealth) June 29, 2022

CTVNews.ca Top Stories

BREAKING | Jury finds Zameer not guilty in Toronto police officer's death

A man accused of fatally running over a Toronto police officer has been found not guilty. More coming.

Tim Hortons refutes potential lawsuit for Roll Up To Win prize snafu

Tim Hortons insists a potential class action lawsuit involving customers who were sent an email by mistake during the company's Roll up to Win contest has "no merit."

Male youth in life-threatening condition after climbing on top of moving GO train and falling: police

A 15-year-old boy is in hospital in life-threatening condition after climbing on top of the GO train, coming into contact with a stationary object and falling just after 12 a.m. on Sunday morning.

What's a Barnacle? It's yellow, sticks and screams if you try to pry it off your car

Barnacles, bright yellow devices used to make sure parking scofflaws pay their tickets, could soon be making their way to cities across Canada.

Young brother and sister dead after suspected drunk driver crashes into birthday party in Michigan

A young brother and sister died and several people were injured, some of them seriously, when a vehicle driven by a suspected drunken driver crashed into a young child's birthday party Saturday at a boat club.

Strong Canadian showing in NHL playoffs is good news for fans

For Russ Jericho, seeing the Edmonton Oilers enter the Stanley Cup playoffs is the culmination of an unlikely passion.

Child not secured, mother holding baby on Highway 401 in eastern Ontario, driver facing charges

The Ontario Provincial Police (OPP) says a car that was initially stopped for stunt driving on Highway 401 in eastern Ontario had a child and a baby not safely seated Friday evening.

In domestic abuse, strangulation is a 'hidden' predictor of femicide, experts say

Georgina McGrath, one of many survivors of domestic abuse, says police officers, judges and lawyers need specialized training about strangulation in intimate partner violence cases.

Key players: Who's who at Donald Trump’s hush money criminal trial

Donald Trump’s hush money criminal trial shifts to opening statements Monday, followed by the start of witness testimony. A jury of seven men and five women, plus six alternates, was picked last week.

Whale experts confident orca calf will survive, find family if rescue plan succeeds

The odds of a two-year old killer whale calf surviving in the open ocean on its own and eventually reuniting with family members remain solid if a rescue team manages to free the orca from the Vancouver Island lagoon where she's been trapped for nearly a month, whale experts say.

Cap on plastic production remains contentious as Ottawa set to host treaty talks

Negotiators from 176 countries will gather in downtown Ottawa this week for the fourth round of talks to create a global treaty to eliminate plastic waste in less than 20 years. The aim is to finalize a deal by the end of the year.

Will there be a 'superbloom' this year in California? Here's what to know

Carpets of yellow, orange and gold flowers are beginning to cover Southern California's vast deserts, the Bay Area's dramatic bluffs and even near Los Angeles International Airport.

Crush of lawsuits over voting in multiple U.S. states creates a shadow war for the 2024 election

As U.S. President Joe Biden and Donald Trump step up their campaigning in swing states, a quieter battle is taking place in the shadows of their White House rematch.

Ukrainian and Western leaders laud U.S. aid package while the Kremlin warns of 'further ruin'

Ukrainian and Western leaders welcomed a desperately needed aid package passed by the U.S. House of Representatives, as the Kremlin warned the passage of the bill would 'further ruin' Ukraine and cause more deaths.

Israeli strikes on southern Gaza city of Rafah kill 22, mostly children, as U.S. advances aid package

Israeli strikes on the southern Gaza city of Rafah overnight killed 22 people, including 18 children, health officials said Sunday, as the United States was on track to approve billions of dollars of additional military aid to its close ally.

2 Japanese navy helicopters crash in the Pacific Ocean during training, leaving 1 dead and 7 missing

Two Japanese navy helicopters carrying eight crew members crashed in the Pacific Ocean south of Tokyo during nighttime training in a possible collision, leaving one dead while rescuers on Sunday searched for seven others missing, the defence minister said.

Conservatives won't say whether they'd reverse capital gains tax change

Despite expressing vehement opposition to the newly unveiled federal budget, Conservative deputy leader Melissa Lantsman would not say whether her party would reverse the Liberals' plan to increase the capital gains inclusion rate.

'We recognize it's a very challenging time': Minister insists budget won't blunt innovation

Despite significant criticisms from business owners and entrepreneurs that parts of the federal government's latest budget — specifically changes to taxes on capital gains — will stunt innovation, Small Business Minister Rechie Valdez insists it won't.

Here’s what marijuana researchers have to say about 420 or 'Weed Day'

Marijuana is legalized for recreational use in Canada and 24 U.S. states, two territories and the District of Columbia.

Shivering for health: The myths and truths of ice baths explained

In a climate of social media-endorsed wellness rituals, plunging into cold water has promised to aid muscle recovery, enhance mental health and support immune system function. But the evidence of such benefits sits on thin ice, according to researchers.

Dengue cases top 5.2 million in the Americas as outbreak passes yearly record, PAHO says

Dengue cases are surging in the Americas, with cases reported topping 5.2 million as of this week, surpassing a yearly record set in 2023, according to the Pan American Health Organization (PAHO).

Ottawa puts up $50M in federal budget to hedge against job-stealing AI

Worried artificial intelligence is coming for your job? So is the federal government -- enough, at least, to set aside $50 million for skills retraining for workers.

The House votes for possible TikTok ban in the U.S., but don't expect the app to go away soon

The House passed legislation Saturday that would ban TikTok in the United States if the popular social media platform's China-based owner doesn't sell its stake within a year, but don't expect the app to go away anytime soon.

Olympic organizers unveil strategy for using artificial intelligence in sports

Olympic organizers unveiled their strategy Friday to use artificial intelligence in sports, joining the global rush to capitalize on the rapidly advancing technology.

Entertainment

'The Tortured Poets Department': A track-by-track listener's guide to Taylor Swift’s 31-song double album

Taylor Swift released 'The Tortured Poets Department' on Friday, a 31-track surprise double album.

A Nigerian chess champion plays the royal game for 60 hours - a new global chess record

A Nigerian chess champion and child education advocate played chess nonstop for 60 hours in New York City's Times Square to break the Guinness World Record for the longest chess marathon.

Not a toddler, not a parent, but still love 'Bluey'? You're not alone

She's the title character of 'Bluey,' a kids' program consisting of seven-minute episodes that have enraptured children and adults alike. This week's release of its longest episode yet — at a whopping 28 minutes — prompted an outpouring of appreciation for the show, even from those who are neither toddler nor parent.

What is capital gains tax? How is it going to affect the economy and the younger generations?

The federal government says its plan to increase taxes on capital gains is aimed at wealthy Canadians to achieve “tax fairness.”

Lululemon to shutter Washington distribution centre, lay off 128 employees

Lululemon Athletica will close its distribution centre in the state of Washington at the end of the year and lay off more than 100 employees, the apparel retailer told Reuters on Friday.

'Jonny is special': Moncton music community rallies around drummer

A GoFundMe campaign for a Moncton drummer has raised around $49,500 in just a few weeks.

After hearing thousands of last words, this hospital chaplain has advice for the living

Hospital chaplain J.S. Park opens up about death, grief and hearing thousands of last words, and shares his advice for the living.

How 4/20 grew from humble roots to marijuana's high holiday

Saturday marks marijuana culture’s high holiday, 4/20, when college students gather — at 4:20 p.m. — in clouds of smoke on campus quads and pot shops in legal-weed states thank their customers with discounts.

DeBrusk, Swayman power Bruins over Maple Leafs 5-1 in Game 1

Jake DeBrusk had two goals and an assist as the Boston Bruins downed the Toronto Maple Leafs 5-1 in Game 1 of their first-round playoff series Saturday.

Nurse OT winner breaks Montreal hearts as Toronto wins PWHL 'Duel at the Top'

Toronto's Sarah Nurse broke Montreal hearts 13 seconds into overtime in front of a record-setting PWHL crowd at the Bell Centre.

Young people 'tortured' if stolen vehicle operations fail, Montreal police tell MPs

One day after a Montreal police officer fired gunshots at a suspect in a stolen vehicle, senior officers were telling parliamentarians that organized crime groups are recruiting people as young as 15 in the city to steal cars so that they can be shipped overseas.

Tesla recalling nearly 4,000 Cybertrucks because accelerator pedal can get stuck

Tesla is recalling 3,878 of its 2024 Cybertrucks after it discovered that the accelerator pedal can become stuck, potentially causing the vehicle to accelerate unintentionally and increase the risk of a crash.

Local Spotlight

UBC football star turning heads in lead up to NFL draft

At 6'8" and 350 pounds, there is nothing typical about UBC offensive lineman Giovanni Manu, who was born in Tonga and went to high school in Pitt Meadows.

Cat found at Pearson airport 3 days after going missing

Kevin the cat has been reunited with his family after enduring a harrowing three-day ordeal while lost at Toronto Pearson International Airport earlier this week.

Molly on a mission: N.S. student collecting books about women in sport for school library

Molly Knight, a grade four student in Nova Scotia, noticed her school library did not have many books on female athletes, so she started her own book drive in hopes of changing that.

Where did the gold go? Crime expert weighs in on unfolding Pearson airport heist investigation

Almost 7,000 bars of pure gold were stolen from Pearson International Airport exactly one year ago during an elaborate heist, but so far only a tiny fraction of that stolen loot has been found.

Marmot in the city: New resident of North Vancouver's Lower Lonsdale a 'rock star rodent'

When Les Robertson was walking home from the gym in North Vancouver's Lower Lonsdale neighbourhood three weeks ago, he did a double take. Standing near a burrow it had dug in a vacant lot near East 1st Street and St. Georges Avenue was a yellow-bellied marmot.

Relocated seal returns to Greater Victoria after 'astonishing' 204-kilometre trek

A moulting seal who was relocated after drawing daily crowds of onlookers in Greater Victoria has made a surprise return, after what officials described as an 'astonishing' six-day journey.

Ottawa barber shop steps away from Parliament Hill marks 100 years in business

Just steps from Parliament Hill is a barber shop that for the last 100 years has catered to everyone from prime ministers to tourists.

'It was a special game': Edmonton pinball player celebrates high score and shout out from game designer

A high score on a Foo Fighters pinball machine has Edmonton player Dave Formenti on a high.

'How much time do we have?': 'Contamination' in Prairie groundwater identified

A compound used to treat sour gas that's been linked to fertility issues in cattle has been found throughout groundwater in the Prairies, according to a new study.

Out-of-control wildfire burning in central B.C., visible from Highway 97

An out-of-control wildfire in B.C.’s Cariboo region is suspected to be human caused, according to officials, who say crews were called to a number of blazes Saturday.

Drivers warned to expect delays while overpass repairs underway in Delta

Work is now underway to repair an overpass in Delta that sustained significant damage when a commercial truck with an over height load crashed into it last year, according to officials.

Two people injured in Scarborough crash

Two people are injured after a four-vehicle crash in Scarborough Sunday morning.

Centre Street Bridge reopens after pedestrian struck early Sunday

Centre Street Bridge has reopened after being closed early Sunday morning for an investigation into a collision between a vehicle and pedestrian that sent one person to hospital.

Police investigate stabbing in northeast Calgary Saturday evening

One person is in stable condition in hospital after a stabbing in northeast Calgary.

Taylor Swift law class at Queen’s University making shock waves

A first of its kind entertainment law course centred on Taylor Swift will be offered this fall at Queen’s University.

Ottawa Mayor Mark Sutcliffe finishes London Marathon in just over 4 hours

Ottawa Mayor Mark Sutcliffe had “a great day” in London Sunday when he ran in the marathon.

Montreal woman loses close to $25,000 in crypto platform scam

A Montreal woman says she lost close to $25,000 on a fake crypto trading platform she thought was developed by Elon Musk, highlighting the dangers of online scams, which are becoming more and more sophisticated.

Situation improving in Montreal's Village, but problems persist

Members of the community in Montreal's Village neighbourhood say they've seen some improvements to local security and cleanliness, but argue Quebec needs to do more to support vulnerable people in the area.

Range Road 221 closed due to Sunday morning collision in Ardrossan

Strathcona RCMP are on scene of a Sunday morning collision on Range Road 221 in Ardrossan, Alta.

SUV stolen, owner run over in carjacking on Jasper Avenue Saturday morning: EPS

A man was run over by his own SUV Saturday morning after it was stolen by a carjacker on Jasper Avenue.

Brush fire burning in Grande Prairie County, public asked to avoid area: RCMP

Grande Prairie RCMP are asking the public to avoid the area around a brush fire that is burning Sunday morning.

Wrongfully convicted New Brunswick man dies months after exoneration

A wrongfully convicted New Brunswick man who spent decades trying to clear his name before being declared innocent by a judge in January has died at the age of 80.

One man in custody after weapons-related incident in Halifax

Halifax Regional Police has taken one man into custody after a weapons incident early Sunday morning.

Boil water advisory in place for Middle Musquodoboit after water main break

Halifax Water says water service has been restored to customers in Middle Musquodoboit after a water main break, but a boil water advisory is in effect for the area.

Winnipeg woman charged after police vehicle rammed in traffic stop

A 25-year-old woman is facing a number of charges following a dangerous chase Saturday evening in Winnipeg’s River Heights and Charleswood neighbourhoods.

What Winnipeg Jets fans need to know before heading downtown for Game 1

In preparation for the first Winnipeg Whiteout Street Party of the year, the city is shutting down streets and rerouting transit.

‘It’s a real celebration’: Manitoba chefs face off in 2nd annual charity chili competition

Dozens of vendors lifted their ladles for the second annual St. Norbert Farmers’ Market charity chili cook off Saturday.

'It's very sad': Regina's Centennial Market being forced to close

Regina's Centennial Market (CM) is being forced to close after an inspection by Regina Fire and Protective Services (RFPS) found the building was not up to code.

'Recklessly spending tax dollars': Questions arise over cost of government infrastructure projects

Questions are being asked in the legislature about the significant cost of two major government infrastructure projects.

Regina fire crews battle early morning blaze, 22 suites displaced

Fire crews battled an early morning blaze that displaced occupants from 22 suites.

Rider taken to hospital with life-threatening injuries following ATV rollover

A lone rider involved in an ATV rollover has been transported to hospital with life-threatening injuries.

Suspect wanted on 25 charges as part of stolen vehicle investigation in southwestern Ontario

Waterloo regional police are looking for a woman after they recovered nine stolen vehicles and laid more than 50 charges in connection to a fraud investigation.

Conestoga College and John Tibbits named in defamation lawsuit

Conestoga College and its president John Tibbits have been named in a defamation lawsuit.

Saskatoon potters gather for pottery exhibition

The Saskatoon Potters Guild is back with their annual spring exhibition.

Saskatoon judge to make ruling on evidence in fatal THC-impaired driving case

A Saskatoon Provincial Court judge will determine whether testimony from a woman, charged with impaired driving causing the death of a child, will be used as evidence in her trial.

Saskatoon man facing multiple charges after break-in, stolen vehicle

A 34-year-old Saskatoon man is facing multiple charges after a break-and-enter escalated into an armed robbery.

Northern Ontario

Northern ont. man fined after decoy operation catches him hunting on private property.

A Thunder Bay man has been fined $2,000 after he was caught in a decoy operation hunting on private land.

'Unproductive day at the table': Negotiations between Western graduate TAs and university stall

Flanked by major union players from the Canadian Union of Public Employees (CUPE) and the Ontario Federation of Labour, graduate-level teaching assistants (GTAs) at Western University remain on the picket line.

Early morning shooting under investigation by London police 'sounded like a shotgun or rifle,' says neighbour

Police say a man was found with a gunshot wound just before 5 a.m. Saturday in a northwest London neighbourhood.

Here's how Barrie residents are making a difference this weekend ahead of Earth Day

Barrie residents are taking their Spring cleanup to the outdoors this weekend as they move to help clean their neighbourhoods.

Orillia OPP records six impaired driving arrests in past week

The driver of a pick-up truck that rolled over in a Saturday afternoon crash on Highway 400 was the sixth driver to be charged by Orillia OPP for impaired operation-related offences in the last seven days.

Simcoe County LifeLabs employees protest over wage disparity

LifeLabs workers in Barrie joined others from across the region on Saturday in protesting ahead of a looming strike deadline.

Unifor Local 444 president Dave Cassidy announces he is retiring

Dave Cassidy has held the position of Unifor Local 444 president since 2018.

Hundreds race at Point Pelee National Park raising $10K for Crime Stoppers

More than 350 runners and walkers have helped raise approximately $10,000 for Crime Stopppers in Windsor-Essex by participating in the 22nd annual Southern Footprints at Point Pelee National Park.

Detroit River marine training boosts cooperation and preparedness, say commanders

Sailors from the Royal Canadian Naval Reserve are conducting exercises on the river alongside various emergency service groups this weekend, aiming to respond effectively in a coordinated manner to water emergencies.

Vancouver Island

Ea sports simulation predicts vancouver over boston in 2024 stanley cup final.

If EA Sports' annual Stanley Cup playoffs simulation is correct, the Vancouver Canucks are about to exorcise a whole lot of demons.

Victoria is B.C.'s 'dopest' city, according to Uber Eats

When it comes to delivery dope, B.C.'s capital comes out on top, according to Uber Eats.

Stolen snake named Milkshake returned to Kelowna pet store

A banana ball python that was stolen from a Kelowna pet store on Saturday has been returned unharmed, Mounties said.

Nurses rally at B.C. Interior hospital over security, staffing concerns

Nurses held a rally Wednesday at a hospital in the B.C. Interior that closed its emergency department more than a dozen times last year due to insufficient staff.

B.C. to add 240 complex-care housing units throughout province

British Columbia is planning to add 240 new units to its complex-care housing program, providing homes for people with mental-health and addictions challenges that overlap with other serious conditions.

Lethbridge gets a new theatre company to showcase city's storytellers

A new theatre group is setting up shop in Lethbridge.

Hicks stops 43 shots as Brooks Bandits down Okotoks 4-0 in BCHL series opener

The Okotoks Oilers poured it on Friday night, firing 43 shots at goalie Johnny Hicks, who stopped them all, leading the Brooks Bandits to a 4-0 win.

Lethbridge man charged over six incidents where women were approached and solicited

A Lethbridge man has been charged in connection with six different incidents where women were approached and solicited.

Sault Ste. Marie

Kyle Dubas joins Canada's front office for world hockey championship

The Sault's Kyle Dubas has been named to Canada's front office team for the upcoming world hockey championship.

Two historic northern Ont. buildings vie for $50K

Historic buildings across Canada are competing for up to $50,000 to help with restoration costs.

Phoenix Rising looking for community partners

A Sault Ste. Marie-based support group for women is hoping to work with other groups to provide more inclusive services.

N.L. gardening store revives 19th century seed-packing machine

Technology from the 19th century has been brought out of retirement at a Newfoundland gardening store, as staff look for all the help they can get to fill orders during a busy season.

500 Newfoundlanders wound up on the same cruise and it turned into a rocking kitchen party

A Celebrity Apex cruise to the Caribbean this month turned into a rocking Newfoundland kitchen party when hundreds of people from Canada's easternmost province happened to be booked on the same ship.

Protest averted as Newfoundland and Labrador premier helps reach pricing deal on crab

A pricing agreement has been reached between crab fishers and seafood processors that will allow for Newfoundland and Labrador's annual crab fishery to get started.

Shopping Trends

The Shopping Trends team is independent of the journalists at CTV News. We may earn a commission when you use our links to shop.  Read about us.

Editor's Picks

17 practical things for your backyard that you'll want to order immediately, 19 of the best mother's day gifts under $50, here are the best deals you'll find on amazon canada right now, our guide to the best inflatable hot tubs in canada in 2024 (and where to get them), 21 of the best dog products you can get on amazon canada right now, our guide to the best coolers in canada in 2024 (and where to get them), 17 unique mother's day gifts your mom definitely wants, but probably won’t buy herself, if your mom needs a bit of rest and relaxation, here are 20 of the best self-care gifts for mother's day, 20 gifts that are so great, you'll want to keep them for yourself, 12 travel-sized skincare products that'll fit in your toiletry bag, 15 wrinkle-smoothing serums that’ll help reduce the appearance of fine lines, this canadian red light therapy brand is here to give you your best skin ever, stay connected.

Exploring The Recent Revision: Have Canada's Travel Restrictions Evolved?

• Last updated Aug 31, 2023
• Difficulty Beginner

• Category United States

In the midst of a global pandemic, Canada has made significant changes to its travel restrictions, creating a buzz among travelers and international communities alike. With borders closed and strict quarantine measures in place, the country has taken a cautious approach to protect its citizens. However, recent developments have shown a shift in Canada's travel policy, giving hope to those eager to explore the Great White North once again. These updated restrictions present a fresh opportunity for travelers looking to experience the breathtaking beauty and vibrant culture Canada has to offer. From the majestic Rocky Mountains to the charming cities of Toronto and Vancouver, there has never been a better time to plan a trip to Canada.

What You'll Learn

What specific travel restrictions has canada recently implemented or changed, are the travel restrictions in canada more or less strict compared to other countries, how have the changes to travel restrictions in canada affected international travelers, what are the current requirements for entering canada during the pandemic, are there any exemptions or special considerations for certain travelers regarding the travel restrictions in canada.

Canada has recently implemented or changed several travel restrictions in response to the ongoing COVID-19 pandemic. These restrictions aim to protect public health and prevent the spread of the virus. Here are some specific travel restrictions that Canada has implemented or changed:

• Mandatory quarantine: All travelers entering Canada, whether by air, land, or sea, are required to quarantine for 14 days upon arrival. This applies to both Canadian citizens and foreign nationals. During the quarantine period, individuals must stay at a designated quarantine facility or at an agreed-upon location, where they are not in contact with other people.
• Pre-departure COVID-19 testing: As of January 7, 2021, all air passengers aged five and older, including Canadians and foreign nationals, must provide proof of a negative COVID-19 test result taken within 72 hours before boarding their flight to Canada. This requirement helps to reduce the risk of importing new cases of the virus.
• Suspension of flights: Canada has suspended flights from certain countries or regions where there is a high prevalence of COVID-19 variants of concern. As of February 2021, flights from the United Kingdom, Brazil, and Mexico have been temporarily suspended. This measure aims to prevent the introduction of new variants into the country.
• Mandatory quarantine hotel stay: All air travelers entering Canada are now required to take a COVID-19 test upon arrival and stay in a government-approved hotel for up to three nights at their own expense, while waiting for their test results. This measure ensures that individuals who test positive are properly isolated, preventing the potential spread of the virus.
• Travel advisories: The Canadian government has issued travel advisories recommending against non-essential travel outside of Canada during the pandemic. These advisories are in place to protect Canadians and reduce the risk of importing cases or variants of the virus.

It is important to note that these travel restrictions are subject to change as the situation evolves. Travelers are advised to regularly check the official Government of Canada website for the most up-to-date information before planning any trips. Adhering to these restrictions and guidelines is crucial for everyone's safety and the collective effort to control the spread of COVID-19.

Understanding the Latest Travel Restrictions to Bulgaria: What You Need to Know

You may want to see also

Since the start of the COVID-19 pandemic, travel restrictions have been put in place in countries around the world to help curb the spread of the virus. Canada is no exception, and the Canadian government has implemented various measures to restrict travel in and out of the country. But how do these travel restrictions in Canada compare to those in other countries?

In terms of international travel, Canada has implemented some of the strictest measures globally. Since March 2020, the Canadian government has closed its borders to most non-essential travel. Only Canadian citizens, permanent residents, and immediate family members are allowed entry into the country, subject to a mandatory 14-day quarantine. This includes individuals who are fully vaccinated. There are also specific exemptions for essential workers, such as healthcare professionals and truck drivers, who play a critical role in keeping the economy and essential services running.

When it comes to domestic travel within Canada, the restrictions vary from province to province. Some provinces have implemented stricter measures, such as mandatory quarantines or self-isolation periods for individuals traveling from other provinces. However, there are no nationwide travel restrictions within Canada, and individuals can freely move between provinces, subject to any specific requirements imposed by each province.

Comparing the travel restrictions in Canada to other countries, it is clear that Canada has taken a more cautious approach. Many countries have implemented similar entry restrictions and mandatory quarantines for incoming travelers. However, some countries have started to relax their travel restrictions as vaccination rates increase and COVID-19 cases decrease.

For example, the European Union has introduced a digital COVID certificate, which allows travelers who are fully vaccinated, have recovered from COVID-19, or have tested negative to travel freely within the EU. In the United States, fully vaccinated individuals are now allowed to travel domestically without the need for testing or quarantine, although international travel restrictions still apply.

In contrast, Canada has maintained strict travel restrictions, even for fully vaccinated individuals. At present, there is no exemption from the mandatory 14-day quarantine for travelers who have received both doses of a COVID-19 vaccine. The Canadian government has cited concerns about emerging variants and the need to protect public health as reasons for maintaining these restrictions.

Overall, the travel restrictions in Canada are considered to be more stringent compared to many other countries. While these measures have helped limit the spread of COVID-19 in the country, they have had a significant impact on the tourism industry and individuals who rely on international travel for various reasons. As vaccination rates continue to increase and the global situation evolves, it remains to be seen how long these travel restrictions will remain in place.

Navigating the Rhode Island Travel Restrictions: What You Need to Know

In response to the COVID-19 pandemic, Canada has implemented various travel restrictions and requirements that have had a significant impact on international travelers. These changes have been put in place to protect public health and prevent the spread of the virus. Let's explore how these changes have affected international travelers.

One of the most notable changes has been the closure of the Canada-US border to non-essential travel. This means that individuals are not allowed to cross the border for tourism, leisure, or recreational purposes. Only essential travel, such as for work or medical reasons, is permitted. This restriction has significantly reduced the number of international travelers coming into Canada from the United States.

Additionally, Canada has also implemented mandatory quarantine requirements for all international travelers arriving in the country. Upon arrival, travelers must provide a quarantine plan and take a COVID-19 test. They are then required to quarantine for 14 days, regardless of their COVID-19 test results. This quarantine must be completed in a suitable location, such as a hotel or a private residence, and individuals are not allowed to leave their quarantine location unless it is for essential purposes.

The quarantine requirement has had a significant impact on international travelers, as it has limited their ability to explore and enjoy their trip to Canada. Additionally, the cost of quarantine accommodation and testing can be substantial, adding an extra financial burden for travelers. These measures have discouraged many individuals from traveling to Canada, particularly for non-essential purposes.

Furthermore, there have been changes to the eligibility criteria for individuals seeking to enter Canada. Certain exemptions have been implemented, allowing immediate family members of Canadian citizens and permanent residents to enter the country, as well as individuals with valid work or study permits. However, these exemptions still require individuals to adhere to the quarantine requirements.

The changes to travel restrictions in Canada have had a profound impact on international travelers. The closure of the Canada-US border and mandatory quarantine requirements have limited travel opportunities and made it more challenging for individuals to visit Canada. While these measures are necessary to protect public health, they have undoubtedly caused disruptions and inconveniences for travelers. It is important for individuals planning to travel to Canada to stay updated on the latest travel restrictions and requirements to ensure a smooth and safe journey.

Understanding Delta's Child Travel Guidelines and Restrictions

As the COVID-19 pandemic continues to impact global travel, Canada has implemented specific entry requirements to help mitigate the spread of the virus. If you are planning to enter Canada during this time, it is important to understand and comply with these requirements.

Firstly, it is important to note that the Canadian government has imposed travel restrictions and advisories in response to the pandemic. Non-essential travel is currently discouraged, and only individuals who meet certain criteria are allowed to enter the country.

One of the key requirements for entry into Canada is to have a valid reason for traveling. Essential reasons for travel can include work, family reunification, compassionate reasons, and studying in Canada. However, it is important to check the latest government guidelines as these requirements may change over time.

All travelers, regardless of their reason for travel, must submit their travel information through the ArriveCAN app or website before boarding their flight to Canada. This includes providing contact information, quarantine plans, and a COVID-19 self-assessment.

In addition to submitting travel information, travelers to Canada must also provide proof of a negative COVID-19 test result taken within 72 hours before their departure. This applies to all travelers aged five and older, regardless of their citizenship. The test must be a molecular polymerase chain reaction (PCR) or loop-mediated isothermal amplification (LAMP) test. Failure to provide a negative test result may result in denied boarding.

Upon arrival in Canada, travelers are required to undergo further COVID-19 testing and a mandatory 14-day quarantine period. Travelers must also have a suitable quarantine plan in place, which includes staying in a suitable location where they can complete their quarantine without coming into contact with others.

During the quarantine period, travelers must monitor their health and report any COVID-19 symptoms to the appropriate authorities. Compliance with the quarantine requirements is strictly enforced by the government, and penalties may be imposed for non-compliance.

It is important to note that these requirements may vary for different provinces and territories within Canada. Travelers are advised to check the specific guidelines for their destination province to ensure compliance.

In summary, the current requirements for entering Canada during the pandemic include submitting travel information through ArriveCAN, providing a negative COVID-19 test result, and completing a mandatory 14-day quarantine period. These requirements are subject to change, and it is crucial to stay updated with the latest government guidelines and advisories before planning any travel to Canada.

Exploring Venice: Is it Still Possible with Travel Restrictions?

As of March 2020, the Canadian government has implemented travel restrictions in response to the COVID-19 pandemic. These travel restrictions apply to all foreign nationals, including United States citizens, with certain exemptions and special considerations for certain travelers. Whether you are a Canadian citizen, a permanent resident, or a foreign national, it is important to understand the exemptions and special considerations in order to plan your travel accordingly.

Exemptions for Canadian Citizens and Permanent Residents:

Canadian citizens and permanent residents are exempt from the travel restrictions and are allowed to enter Canada. However, they are subject to mandatory quarantine or isolation for 14 days upon arrival. Canadian citizens and permanent residents may also be subject to additional health screening measures at the border.

Exemptions for Immediate Family Members of Canadian Citizens and Permanent Residents:

Immediate family members of Canadian citizens and permanent residents are also exempt from the travel restrictions. Immediate family members include spouses or common-law partners, dependent children, parents, and legal guardians. They are allowed to enter Canada, but like Canadian citizens and permanent residents, they are subject to mandatory quarantine or isolation for 14 days upon arrival.

Special Considerations for Temporary Workers, International Students, and Approved Permanent Residents:

Temporary workers with a valid work permit, international students with a valid study permit, and approved permanent residents who have not yet landed in Canada are also exempt from the travel restrictions. However, they must demonstrate that their travel to Canada is non-discretionary and provide a valid reason for entering the country. They are also required to quarantine or isolate for 14 days upon arrival.

Special Considerations for Foreign Nationals with Valid Visas or Electronic Travel Authorizations:

Foreign nationals who have a valid visa or electronic travel authorization (eTA) and are exempt from the travel restrictions are allowed to enter Canada. However, they must demonstrate that their travel to Canada is non-discretionary and provide a valid reason for entering the country. Like other exempt travelers, they are required to quarantine or isolate for 14 days upon arrival.

Special Considerations for Transit Passengers:

Transit passengers who are traveling through Canada to another country are also exempt from the travel restrictions. They are allowed to transit through Canadian airports as long as they have a confirmed onward ticket and meet the entry requirements of their final destination.

It is important to note that these exemptions and special considerations are subject to change and may vary depending on individual circumstances. It is recommended to check the official website of the Government of Canada for the most up-to-date information regarding travel restrictions and exemptions. Additionally, travelers should follow all public health guidelines and requirements to ensure the safety and well-being of themselves and others while traveling during the COVID-19 pandemic.

Navigating the Travel Restrictions in Nassau: What You Need to Know

Frequently asked questions.

Yes, Canada did change its travel restrictions in response to the COVID-19 pandemic. In March 2020, the Canadian government implemented strict measures to limit the spread of the virus, including travel restrictions and requirements for mandatory quarantine for incoming travelers.

As of August 2021, Canada has eased some of its travel restrictions but still maintains certain measures to protect public health. Fully vaccinated travelers from the United States are allowed to enter Canada for non-essential travel, and as of September 7, 2021, fully vaccinated travelers from other countries will also be permitted to enter. However, all travelers must still provide proof of a negative COVID-19 test result before boarding their flight and are subject to mandatory quarantine and testing upon arrival.

Yes, there are some exceptions to Canada's travel restrictions. Essential workers, such as healthcare professionals, truck drivers, and airline crew members, are exempt from certain quarantine requirements and may be allowed to enter the country under specific conditions. Additionally, Canadian citizens, permanent residents, and their immediate family members are generally exempt from travel restrictions, but they must still follow the necessary testing and quarantine measures upon arrival.

• Kryms Kaya Author Traveller

• Naim Haliti Author Editor Reviewer Traveller

It is awesome. Thank you for your feedback!

We are sorry. Plesae let us know what went wrong?

We will update our content. Thank you for your feedback!

Leave a comment

United states photos, related posts.

14 Fun Things to Do in Warwick, NY

• May 07, 2023

13 Fun Activities for Kids in Kalamazoo

• Jun 03, 2023

Alameda Weekend Excursions

• Jun 24, 2023

Essential Items to Pack for Your 3-Month-Old Baby

• Dec 17, 2023

12 Fantastic Activities to Enjoy Near Playa Vista

• May 24, 2023

12 Fun Things to Do in Seattle When It Rains

Language selection

• Français fr

Tax Measures: Supplementary Information

Tax Measures: Supplementary Information ( PDF , 1.91 MB )

On this page

Lifetime capital gains exemption, canadian entrepreneurs' incentive, capital gains inclusion rate, volunteer firefighters and search and rescue volunteers tax credits, mineral exploration tax credit, alternative minimum tax, canada child benefit, disability supports deduction, employee ownership trust tax exemption, charities and qualified donees, home buyers' plan, qualified investments for registered plans, deduction for tradespeople's travel expenses, indigenous child and family services settlement, clean electricity investment tax credit, polymetallic extraction and processing, accelerated capital cost allowance, canada carbon rebate for small businesses, interest deductibility limits – purpose-built rental housing, non-compliance with information requests, avoidance of tax debts, reportable and notifiable transactions penalty, mutual fund corporations, synthetic equity arrangements, manipulation of bankrupt status, crypto-asset reporting framework and the common reporting standard, withholding for non-resident service providers, extending gst relief to student residences, gst/hst on face masks and face shields, tobacco and vaping product taxation, fuel, alcohol, cannabis, and tobacco sales tax framework, previously announced measures, related documents.

• Notice of Ways and Means Motion to amend the Income Tax Act and the Income Tax Regulations
• Notice of Ways and Means Motion to amend the Excise Tax Act and Other Legislation
• Notice of Ways and Means Motion to amend the Excise Act , 2001 and Other Related Texts

This annex provides detailed information on tax measures proposed in the Budget.

Table 1 lists these measures and provides estimates of their fiscal impact.

The annex also provides Notices of Ways and Means Motions to amend the Income Tax Act , the Excise Tax Act , the Excise Act, 2001 , the Air Travellers Security Charge Act, the Select Luxury Items Tax Act, the Underused Housing Tax Act and draft amendments to various regulations.

In this annex, all references to "Budget Day" are to be read as references to the day on which this Budget is presented.

Personal Income Tax Measures

The income tax system provides an individual with a lifetime tax exemption for capital gains realized on the disposition of qualified small business corporation shares and qualified farm or fishing property. The amount of the Lifetime Capital Gains Exemption (LCGE) is $1,016,836 in 2024 and is indexed to inflation.

Budget 2024 proposes to increase the LCGE to apply to up to $1.25 million of eligible capital gains. This measure would apply to dispositions that occur on or after June 25, 2024. Indexation of the LCGE would resume in 2026.

Budget 2024 proposes to introduce the Canadian Entrepreneurs' Incentive. This incentive would reduce the tax rate on capital gains on the disposition of qualifying shares by an eligible individual. Specifically, this incentive would provide for a capital gains inclusion rate that is one half the prevailing inclusion rate, on up to $2 million in capital gains per individual over their lifetime.

The lifetime limit would be phased in by increments of $200,000 per year, beginning on January 1, 2025, before ultimately reaching a value of $2 million by January 1, 2034.

Under the two-thirds capital gains inclusion rate proposed in Budget 2024, this measure would result in an inclusion rate of one third for qualifying dispositions. This measure would apply in addition to any available capital gains exemption.

A share of a corporation would be a qualifying share if certain conditions are met, including all the following conditions:

• At the time of sale, it was a share of the capital stock of a small business corporation (for the purposes of the Income Tax Act ) owned directly by the claimant.
• used principally in an active business carried on primarily in Canada by the Canadian-Controlled Private Corporation, or by a related corporation,
• certain shares or debts of connected corporations, or
• a combination of these two types of assets.
• The claimant was a founding investor at the time the corporation was initially capitalized and held the share for a minimum of five years prior to disposition.
• At all times since the initial share subscription until the time that is immediately before the sale of the shares, the claimant directly owned shares amounting to more than 10 per cent of the fair market value of the issued and outstanding capital stock of the corporation and giving the individual more than 10 per cent of the votes that could be cast at an annual meeting of the shareholders of the corporation.
• Throughout the five-year period immediately before the disposition of the share, the claimant must have been actively engaged on a regular, continuous, and substantial basis in the activities of the business.
• operating in the financial, insurance, real estate, food and accommodation, arts, recreation, or entertainment sector; or
• providing consulting or personal care services.
• The share must have been obtained for fair market value consideration.

Coming Into Force

This measure would apply to dispositions that occur on or after January 1, 2025.

One half of a capital gain is included in computing a taxpayer's income. This is referred to as the capital gains inclusion rate. The current one-half inclusion rate also applies to capital losses.

Budget 2024 proposes to increase the capital gains inclusion rate from one half to two thirds for corporations and trusts, and from one half to two thirds on the portion of capital gains realized in the year that exceed $250,000 for individuals, for capital gains realized on or after June 25, 2024.

The $250,000 threshold would effectively apply to capital gains realized by an individual, either directly or indirectly via a partnership or trust, net of any:

• current-year capital losses;
• capital losses of other years applied to reduce current-year capital gains; and
• capital gains in respect of which the Lifetime Capital Gains Exemption, the proposed Employee Ownership Trust Exemption or the proposed Canadian Entrepreneurs' Incentive is claimed.

Claimants of the employee stock option deduction would be provided a one-third deduction of the taxable benefit to reflect the new capital gains inclusion rate, but would be entitled to a deduction of one half the taxable benefit up to a combined limit of $250,000 for both employee stock options and capital gains.

Net capital losses of prior years would continue to be deductible against taxable capital gains in the current year by adjusting their value to reflect the inclusion rate of the capital gains being offset. This means that a capital loss realized prior to the rate change would fully offset an equivalent capital gain realized after the rate change.

For tax years that begin before and end on or after June 25, 2024, two different inclusion rates would apply. As a result, transitional rules would be required to separately identify capital gains and losses realized before the effective date (Period 1) and those realized on or after the effective date (Period 2). For example, taxpayers would be subject to the higher inclusion rate in respect of the portion of their net gains arising in Period 2 that exceed the $250,000 threshold, to the extent that these net gains are not offset by a net loss incurred in Period 1 or any other taxation years.

The annual $250,000 threshold for individuals would be fully available in 2024 (i.e., it would not be prorated) and would apply only in respect of net capital gains realized in Period 2.

Other consequential amendments would also be made to reflect the new inclusion rate. Additional design details will be released in the coming months.

The Volunteer Firefighters Tax Credit and the Search and Rescue Volunteers Tax Credit allow individuals who performed at least 200 hours of combined volunteer service during the year as a volunteer firefighter or a search and rescue volunteer to claim a 15-per-cent non-refundable tax credit based on an amount of $3,000.

Budget 2024 proposes to double the credit amount for the Volunteer Firefighters Tax Credit and the Search and Rescue Volunteers Tax Credit to $6,000. This would increase the maximum tax relief to $900. This enhancement would apply to the 2024 and subsequent taxation years.

Flow-through shares allow resource companies to renounce or "flow through" tax expenses associated with their Canadian exploration activities to investors, who can deduct the expenses in calculating their own taxable income. The Mineral Exploration Tax Credit provides an additional income tax benefit for individuals who invest in mining flow-through shares, which augments the tax benefits associated with the amounts that are flowed through. This tax credit provides support to junior mining companies engaged in certain grassroots mineral exploration. The tax credit is equal to 15 per cent of the specified mineral exploration expenses incurred in Canada and renounced to flow-through share investors. The Mineral Exploration Tax Credit is legislated to expire on March 31, 2024.

As announced on March 28, the government proposes to extend eligibility for the Mineral Exploration Tax Credit for one year, to flow-through share agreements entered into on or before March 31, 2025.

Strategic Environmental Assessment Statement

Mineral exploration, as well as new mining and related processing activities that could follow from successful exploration efforts, can be associated with a variety of environmental impacts to soil, water and air and, as a result, could have an impact on the targets and actions in the Federal Sustainable Development Strategy. All such activity, however, is subject to applicable federal and provincial environmental regulations, including project-specific environmental assessments where required.

The Alternative Minimum Tax (AMT) is a parallel tax calculation that allows fewer tax credits, deductions, and exemptions than under the ordinary personal income tax rules. Taxpayers pay either regular tax or AMT, whichever is highest.

Budget 2023 announced amendments to the Income Tax Act that would change the AMT calculation. Draft legislative proposals to implement these changes were published for consultation in the summer of 2023.

Budget 2024 proposes to make further changes to the AMT proposals, as described below.

Changes to the Tax Treatment of Charitable Donations

Budget 2024 proposes that the tax treatment of charitable donations be revised to allow individuals to claim 80 per cent (instead of the previously proposed 50 per cent) of the Charitable Donation Tax Credit when calculating AMT.

Additional Amendments

Budget 2024 proposes several additional amendments to the AMT proposals. These amendments would:

• fully allow deductions for the Guaranteed Income Supplement, social assistance, and workers' compensation payments;
• allow individuals to fully claim the federal logging tax credit under the AMT;
• fully exempt Employee Ownership Trusts from the AMT; and
• allow certain disallowed credits under the AMT to be eligible for the AMT carry-forward (i.e., the federal political contribution tax credit, investment tax credits, and labour-sponsored funds tax credit).

Budget 2024 also proposes several technical amendments to the AMT legislative proposals.

Proposed Exemption for Certain Trusts for the Benefit of Indigenous Groups

Budget 2024 proposes to provide an exemption from the AMT for trusts established under:

• a law of Canada or a province if the trust is for the benefit of an Indigenous group, community, or people that holds rights recognized and affirmed by section 35 of the Constitution Act, 1982 , or
• a treaty or a settlement agreement between His Majesty in right of Canada, or His Majesty in right of a province, and an Indigenous group, community, or people recognized and affirmed by section 35 of the Constitution Act, 1982 ,

provided that all or substantially all of the contributions to the trust before the end of the year are amounts paid under the law, treaty, or settlement agreement described in paragraph (a) or (b), or are reasonably traceable to those amounts.

An exemption from the AMT would also be provided for trusts where the beneficiaries are any combination of the following persons or entities:

• all of the members of a recognized Indigenous group, community or people that holds rights recognized and affirmed by section 35 of the Constitution Act, 1982 ; 
• a public body performing a function of government in Canada (within the meaning of the Income Tax Act ) in relation to an Indigenous group, community, or people that holds rights recognized and affirmed by section 35 of the Constitution Act , 1982;
• a registered charity or a non-profit organization that is organized and operated primarily for health, education, social welfare, or community improvement for the benefit of the members of an Indigenous group, community, or people that holds rights recognized and affirmed by section 35 of the Constitution Act , 1982;
• a corporation, all of the shares or capital of which are owned by any combination of persons or entities described in paragraph (b) or (c) above, a Settlement Trust, or another corporation meeting this definition; or
• a Settlement Trust.

The government is interested in stakeholders' views on these proposed exemptions for Indigenous settlement and community trusts. Interested parties are invited to send written representations to the Department of Finance Canada, Tax Policy Branch at [email protected] by June 28, 2024.

These amendments would apply to taxation years that begin on or after January 1, 2024 (i.e., the same day as the broader AMT amendments).

The Canada Child Benefit (CCB) is an income-tested benefit that is paid monthly and provides support for eligible families with children under the age of 18. 

A CCB recipient becomes ineligible for the CCB in respect of a child the month following the child's death. To ensure benefit amounts reflect up-to-date information on family circumstances, a CCB recipient is required to notify the Canada Revenue Agency (CRA) before the end of the month following the month of their child's death. Notifications of a child's death are also provided to the CRA by provincial/territorial vital statistics agencies.

Delays in receiving notification of a child's death can result in the clawing back of CCB payments in respect of the deceased child for a few months after their death.

Budget 2024 proposes to amend the Income Tax Act to extend eligibility for the CCB in respect of a child for six months after the child's death (the "extended period"), if the individual would have otherwise been eligible for the CCB in respect of that particular child.

• For example, if a child dies in July, the child's primary caregiver would be eligible to receive the CCB in respect of this child for August through January under the proposed change, provided all eligibility criteria are met.

The CCB entitlement for each month during the extended period would be based on the age of the child in that particular month as if the child were still alive and would reflect the other family circumstances that apply in that month (e.g., marital status). CCB overpayments unrelated to the death of a child would still need to be repaid.

A CCB recipient would still be required to notify the CRA of their child's death before the end of the month following the month of their child's death to ensure that there are no overpayments after the new extended period of six months ends.

The extended period would also apply to the Child Disability Benefit, which is paid with the CCB in respect of a child eligible for the Disability Tax Credit.

This measure would be effective for deaths that occur after 2024.

The Disability Supports Deduction allows individuals who have an impairment in physical or mental functions to deduct certain expenses that enable them to earn business or employment income or to attend school.

In order for an expense to qualify, it must be specified in the Income Tax Act and a medical practitioner must either prescribe the expense or otherwise certify in writing that the expense is required.

Budget 2024 proposes to expand the list of expenses recognized under the Disability Supports Deduction, subject to the specified conditions:

• the cost of an ergonomic work chair, including related amounts paid for an ergonomic assessment to a person engaged in the business of providing such services;
• the cost of a bed positioning device, including related amounts paid for an ergonomic assessment to a person engaged in the business of providing such services; and
• the cost of purchasing a mobile computer cart.
• the cost of purchasing an alternative input device to allow the individual to use a computer; and
• the cost of purchasing a digital pen device to allow the individual to use a computer.
• Where an individual has a vision impairment, the cost of purchasing a navigation device for low vision.
• Where an individual has an impairment in mental functions, the cost of purchasing memory or organizational aids.

Budget 2024 also proposes that expenses for service animals, as defined under the Medical Expense Tax Credit rules in the Income Tax Act, be recognized under the Disability Supports Deduction. Taxpayers would be able to choose to claim an expense under either the Medical Expense Tax Credit or the Disability Supports Deduction.

This measure would apply to the 2024 and subsequent taxation years.

Budget 2023 proposed tax rules to facilitate the creation of employee ownership trusts (EOTs). These legislative proposals are currently before Parliament in Bill C-59. The 2023 Fall Economic Statement proposed to exempt the first $10 million in capital gains realized on the sale of a business to an EOT from taxation, subject to certain conditions.

Budget 2024 provides further details on the proposed exemption and conditions. 

Qualifying Conditions

The exemption would be available to an individual (other than a trust) on the sale of shares to an EOT where the following conditions are met:

• The individual, a personal trust of which the individual is a beneficiary, or a partnership in which the individual is a member, disposes of shares of a corporation that is not a professional corporation.
• The transaction is a qualifying business transfer (as defined in the proposed rules for EOTs) in which the trust acquiring the shares is not already an EOT or a similar trust with employee beneficiaries.
• the transferred shares were exclusively owned by the individual claiming the exemption, a related person, or a partnership in which the individual is a member; and
• over 50 per cent of the fair market value of the corporation's assets were used principally in an active business.
• At any time prior to the qualifying business transfer, the individual (or their spouse or common-law partner) has been actively engaged in the qualifying business on a regular and continuous basis for a minimum period of 24 months.
• Immediately after the qualifying business transfer, at least 90 per cent of the beneficiaries of the EOT must be resident in Canada.

If the above conditions are satisfied, the individual would be able to claim an exemption for up to $10 million in capital gains from the sale.

If multiple individuals disposed of shares to an EOT as part of a qualifying business transfer and met the conditions described above, they may each claim the exemption, but the total exemption in respect of the qualifying business transfer cannot exceed $10 million. The individuals would be required to agree on how to allocate the exemption.

Disqualifying Events

If a disqualifying event occurs within 36 months of the qualifying business transfer, the exemption would not be available. Where the individual has already claimed the exemption, it would be retroactively denied.

A disqualifying event would occur if an EOT loses its status as an EOT or if less than 50 per cent of the fair market value of the qualifying business' shares is attributable to assets used principally in an active business at the beginning of two consecutive taxation years of the corporation.

If the disqualifying event occurs more than 36 months after a qualifying business transfer, the EOT would be deemed to realize a capital gain equal to the total amount of exempt capital gains.  

Capital gains exempted through this measure would be subject to an inclusion rate of 30 per cent for the purposes of the alternative minimum tax, similar to the treatment for gains eligible for the lifetime capital gains exemption.

Administration

In order for an individual to claim an exemption on the sale to an EOT, the EOT (and any corporation owned by the EOT that acquired the transferred shares) and the individual would need to elect to be jointly and severally, or solidarily, liable for any tax payable by the individual as a result of the exemption being denied due to a disqualifying event within the first 36 months after a qualifying business transfer. As discussed above, following the 36-month period, the trust would be solely liable for tax realized on the deemed capital gain arising on a disqualifying event.

The normal reassessment period of an individual for a taxation year in respect of this exemption is proposed to be extended by three years.

Worker Cooperatives

Budget 2024 also proposes to expand qualifying business transfers to include the sale of shares to a worker cooperative corporation. The worker cooperative would generally need to meet the definition set out under the Canada Cooperatives Act .

Provided the relevant requirements are met, this would allow an individual to claim an exemption on selling a business to a worker cooperative.

A qualifying business transfer to a worker cooperative would also be eligible for the 10-year capital gains reserve and the 15-year exception to the shareholder loan and interest benefit rules announced in Budget 2023. 

Additional details on this aspect of the exemption will be released in the coming months.

Coming into Force

This measure would apply to qualifying dispositions of shares that occur between January 1, 2024 and December 31, 2026.

Budget 2024 proposes to amend the Income Tax Act and Income Tax Regulations to improve the operation of the rules related to registered charities and other qualified donees.

Foreign Charities Registered as Qualified Donees

The Income Tax Act allows a foreign charity to be registered as a qualified donee for a temporary 24-month period. To be eligible for registration, a foreign charity must have received a gift from His Majesty in right of Canada, and be pursuing activities relating to urgent humanitarian aid, disaster relief, or activities in the national interest of Canada.

Budget 2024 proposes to extend the period for which qualifying foreign charities are granted status as a qualified donee from 24 months to 36 months. In addition, foreign charities would be required to submit an annual information return to the Canada Revenue Agency (CRA) that includes the total amount of receipts issued to Canadian donors, the total amount of gifts received from qualified donees, and information on how those funds were used. This information would be made publicly available.

Modernizing Service

Budget 2024 proposes various amendments to the Income Tax Act to help simplify and modernize the way in which the CRA provides services and communicates information relating to registered charities and other qualified donees.

Budget 2024 proposes to permit the CRA to communicate certain official notices digitally, where the charity has opted to receive information from the CRA electronically. Registered charities that have not opted to receive information electronically would receive official notices, other than compliance-related notices, by regular mail. Those charities would continue to receive compliance-related notices, including notices of intention to revoke, annul, or suspend a charity's registration, by registered mail.

Currently, the revocation of the registration of a charity or other qualified donee is effective upon publication in the Canada Gazette. Budget 2024 proposes to remove this requirement. Instead, the revocation of registration would become effective upon the publication of an official notice of revocation on a government webpage.

Budget 2024 also proposes to remove the requirement that certain objections be addressed directly to the Assistant Commissioner of the CRA's Appeals Branch.

Donation Receipts

Registered charities and qualified donees can issue official donation receipts for gifts that they receive. The Income Tax Act and the Income Tax Regulations set out the minimum requirements for a receipt to be valid and the processes that must be followed when issuing receipts.

Budget 2024 proposes a number of changes to simplify the issuance of official donation receipts and to align the process for issuing receipts with modern practices of charities. 

Budget 2024 proposes to remove the requirement that official donation receipts contain:

• the place of issuance of the receipt;
• the name and address of the appraiser, if an appraisal of the donated property has been done; and
• the middle initial of the donor.

Budget 2024 also proposes to allow charities to mark a donation receipt as "void", as an alternative to the term "cancelled", where a receipt has been spoiled, as well as removing the requirement that it be stored with a duplicate copy.

Budget 2024 also proposes to update the regulations to expressly permit charities to issue official donation receipts electronically, provided that they contain all required information, they are issued in a secure and non-editable format, and the charity maintains an electronic copy of the receipts.

Measures relating to the extension of the registration period for foreign charities would apply to foreign charities registered after Budget Day. New reporting requirements for foreign charities would apply to taxation years beginning after Budget Day.

All remaining measures would apply upon royal assent.

The home buyers' plan (HBP) helps eligible home buyers save for a down payment by allowing them to withdraw up to $35,000 from a registered retirement savings plan (RRSP) to purchase or build their first home, or a home for a specified disabled individual, without having to pay tax on the withdrawal. Eligible home buyers purchasing a home jointly may each withdraw up to $35,000 from their own RRSP under the HBP.

Amounts withdrawn under the HBP must be repaid to an RRSP over a period not exceeding 15 years, starting the second year following the year in which a first withdrawal was made. Otherwise, amounts due for repayment within a specific year are taxable as income for that year.

Increasing the withdrawal limit

Budget 2024 proposes to increase the withdrawal limit from $35,000 to $60,000. This increase would also apply to withdrawals made for the benefit of a disabled individual.

This measure would apply to the 2024 and subsequent calendar years in respect of withdrawals made after Budget Day.

Temporary repayment relief

Budget 2024 proposes to temporarily defer the start of the 15-year repayment period by an additional three years for participants making a first withdrawal between January 1, 2022, and December 31, 2025. Accordingly, the 15-year repayment period would start the fifth year following the year in which a first withdrawal was made.

Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), Tax-Free Savings Accounts (TFSAs), Registered Education Savings Plans (RESPs), Registered Disability Savings Plans (RDSPs), First Home Savings Accounts (FHSAs), and Deferred Profit Sharing Plans (DPSPs) can invest only in qualified investments for those plans. A broad range of assets are qualified investments, including mutual funds, publicly traded securities, government and corporate bonds, and guaranteed investment certificates.

Introduced in 1966, the qualified investment rules have been incrementally expanded to include more than 40 types of assets and to reflect the introduction of new types of registered plans (including TFSAs in 2009 and FHSAs in 2023). However, this incremental approach has resulted in qualified investment rules that can be inconsistent or difficult to understand in some cases. For example:

• Different registered plans have slightly different rules for making investments in small businesses.
• Certain types of annuities are qualified investments only for RRSPs, RRIFs, and RDSPs.
• Certain pooled investment products are qualified investments only if they are registered with the Canada Revenue Agency (known as "registered investments").

Budget 2024 invites stakeholders to provide suggestions on how the qualified investment rules could be modernized on a prospective basis to improve the clarity and coherence of the registered plans regime. Specific issues under consideration include: 

• Whether and how the rules relating to investments in small businesses could be harmonized to apply consistently to all registered savings plans.
• Whether annuities that are qualified investments only for RRSPs, RRIFs, and RDSPs should continue to be qualified investments.
• Whether the conditions that certain pooled investment products must meet to be a qualified investment are appropriate, including the ongoing value of maintaining a formal registration process for registered investments.
• Whether and how qualified investment rules could promote an increase in Canadian-based investments.
• Whether crypto-backed assets are appropriate as qualified investments for registered savings plans.

Stakeholders are invited to submit comments to [email protected] by July 15, 2024.

Eligible tradespeople and apprentices in the construction industry are currently able to deduct up to $4,000 in eligible travel and relocation expenses per year by claiming the Labour Mobility Deduction for Tradespeople. A private member's bill was introduced in the 44th Parliament (Bill C-241) to enact an alternative deduction for certain travel expenses of tradespeople in the construction industry, with no cap on expenses, retroactive to the 2022 taxation year.  

Budget 2024 announces that the government will consider bringing forward amendments to the Income Tax Act to provide for a single, harmonized deduction for tradespeople's travel that respects the intent of Bill C-241.

In the First Nations Child and Family Services, Jordan's Principle, and Trout Class Settlement Agreement, approved by the Federal Court on October 24, 2023, the government committed to make best efforts to exempt the income of the trusts established under the settlement agreement from federal taxation. The government also committed to make best efforts to ensure that a class member's receipt of payments would not be considered taxable income and to ensure that federal social benefits and social assistance benefits for class members would not be negatively impacted by payments received pursuant to the settlement agreement. 

Budget 2024 proposes to amend the Income Tax Act to exclude the income of the trusts established under the First Nations Child and Family Services, Jordan's Principle, and Trout Class Settlement Agreement from taxation. This would also ensure that payments received by class members as beneficiaries of the trusts would not be included when computing income for federal income tax purposes.

Business Income Tax Measures

Budget 2023 announced a refundable Clean Electricity investment tax credit equal to 15 per cent of the capital cost of eligible property, with some additional changes announced in the 2023 Fall Economic Statement . Budget 2024 provides the design and implementation details of the tax credit.

Eligible Entities

The Clean Electricity investment tax credit would be available only to Canadian corporations. Eligible corporations would be:

• taxable Canadian corporations;
• provincial and territorial Crown corporations, subject to additional requirements (see section "Proposed Application to Provincial and Territorial Crown Corporations");
• corporations owned by municipalities;
• corporations owned by Indigenous communities; and
• pension investment corporations.

In order to receive the tax credit, corporations with a claim to immunity or exemption from tax would be required to agree to be subject to the provisions of the Income Tax Act related to the tax credit, including provisions related to audit, penalties and collections, and agree not to assert any immunity or exemption in respect of the tax credit.

Where eligible property is owned by a partnership, any partners that are corporations eligible for the credit would be allowed to claim their share of the partnership's Clean Electricity investment tax credit, subject to partnership rules generally consistent with those proposed for the Clean Technology investment tax credit currently before Parliament in Bill C-59. In cases where a property is eligible for both the Clean Electricity and Clean Technology investment tax credits, partners could claim their reasonable share of either credit for which they qualified (but could not claim both credits in respect of the same property).

Eligible Property

The following types of equipment would be eligible for the Clean Electricity investment tax credit:

• equipment used to generate electricity from solar, wind, or water energy that is described under subparagraphs (d)(ii), (iii.1), (v), (vi), or (xiv) of capital cost allowance Class 43.1 of Schedule II of the Income Tax Regulations , but hydro-electric installations would not be subject to a capacity limit as is the case for Class 43.1;
• concentrated solar energy equipment, as defined for the purposes of the proposed Clean Technology investment tax credit, but limited to equipment used to generate electricity;
• equipment used to generate electricity, or both electricity and heat, from nuclear fission, as defined for the purposes of the proposed Clean Technology investment tax credit, but without generating capacity limits or a requirement to be comprised of modules that are factory-assembled and transported pre-built to the installation site;
• equipment used for the purpose of generating electricity, or both electricity and heat, solely from geothermal energy, as described in subparagraph (d)(vii) of Class 43.1, if it is used exclusively for that purpose, but excluding any equipment that is part of a system that extracts fossil fuel for sale;
• equipment that is part of a system used to generate electricity, or both electricity and heat, from specified waste materials, as described in the 2023 Fall Economic Statement ;
• stationary electricity storage equipment that is described under subparagraph (d)(xviii) of Class 43.1 and equipment used for pumped hydroelectric energy storage that is described under subparagraph (d)(xix) of Class 43.1, but excluding equipment that uses any fossil fuel in operation;
• equipment that is part of an eligible natural gas energy system (as described below); and
• equipment and structures used for the transmission of electricity between provinces and territories (as described below).

Qualifying expenditures could include capital expenditures to refurbish existing facilities.

Electricity Generation and Cogeneration from Natural Gas with Carbon Capture

Eligible natural gas energy systems would be those that use fuel all or substantially all of which is natural gas solely to generate electricity, or both electricity and heat, and use a carbon capture system to limit emissions.

Eligible systems would be required to attain an emissions intensity no greater than 65 tonnes of carbon dioxide per gigawatt hour of energy produced, and the captured carbon dioxide would have to be stored appropriately. The proposed emissions intensity limit may not reflect the final emissions performance standard of the Clean Electricity Regulations .

When part of an integrated eligible system, eligible property would include:

• equipment that generates both electrical and heat energy (e.g., gas turbine generators);
• heat recovery equipment (e.g., heat recovery steam generators);
• electrical generating equipment (e.g., steam turbine generators);
• heat generating equipment used primarily for the purpose of producing heat energy to operate the electrical generating equipment (e.g., steam boilers used to produce steam to operate steam turbine generators); and
• carbon capture equipment, including equipment that prepares or compresses captured carbon for transportation.

Eligible property would not include buildings or other structures, heat rejection equipment (e.g., cooling towers), electrical transmission and distribution equipment, fuel handling equipment, or equipment used for carbon dioxide transportation, storage, or use.

Emissions intensity measures the average quantity of carbon dioxide emissions associated with each unit of energy output (i.e., electricity and useful heat) by dividing total carbon dioxide released into the atmosphere by total energy produced over a fixed period of time. As noted above, for a system to be eligible, the maximum allowable emissions intensity would be 65 tonnes of carbon dioxide per gigawatt hour of energy produced. The formula to calculate a system's emissions intensity for the purposes of the Clean Electricity investment tax credit would be a modified version of that used in the Regulations Limiting Carbon Dioxide Emissions from Natural Gas-fired Generation of Electricity under the Canadian Environmental Protection Act . Modifications would include:

• emissions attributable to the combustion of biomass, as defined under the Regulations Limiting Carbon Dioxide Emissions from Natural Gas-fired Generation of Electricity , would be included in the total emissions calculation; and
• emissions that are captured and stored in dedicated geological storage would be removed from the total emissions calculation. Emissions captured and used for enhanced oil recovery or other storage or use would not be removed.

Requirements for dedicated geological storage would be aligned with those proposed for the Carbon Capture, Utilization, and Storage investment tax credit currently before Parliament in Bill C-59. As a result, the geological formation for storage would need to be located in a jurisdiction with sufficient environmental laws and enforcement to ensure that carbon dioxide is permanently stored. Eligible jurisdictions for dedicated geological storage are currently proposed to include Alberta, British Columbia, and Saskatchewan.  

Natural Resources Canada would review project plans to determine equipment and system eligibility before a Clean Electricity investment tax credit claim could be made. Project plans would be required to reflect a front-end engineering design study and any other information required by the Minister of Energy and Natural Resources. Only eligible property in an integrated system with estimated emissions intensity not exceeding the maximum allowable limit would qualify.

Equipment eligibility would also need to be verified by Natural Resources Canada once the expenditures are incurred and before a claim is submitted to the Canada Revenue Agency.

Transmission of Electricity Between Provinces and Territories

Eligible interprovincial and territorial electrical transmission property would be property that is used to transmit or manage electrical energy that primarily originates in, or is destined for, another province or territory. This could include property located exclusively within a province or territory, if the property is used primarily for the purpose of interprovincial transmission. For example, transmission property installed in a province could be eligible if it became operational and began exporting electricity to another province after the completion of connected transmission property that crosses the border.

Eligible property would include:

• electrical transmission equipment (e.g., cables and switches);
• electrical transmission structures (e.g., towers and lattices); and
• related equipment used for managing traded electricity (e.g., transformers, electric power conditioning equipment, and control equipment).

Eligible property would not include buildings, electrical distribution equipment, or electrical transmission equipment rated for voltages less than 69 kilovolts.

Labour Requirements

In order to qualify for the 15-per-cent Clean Electricity investment tax credit, the proposed labour requirements currently before Parliament in Bill C-59 for prevailing wages and apprenticeships would need to be met. A 5-per-cent credit rate would be available if the labour requirements are not met.

Compliance and Recovery

Ongoing compliance with eligibility criteria.

Under the current rules for certain properties described in Class 43.1 or 43.2, all the conditions for inclusion in the Class must be satisfied on an annual basis. There is a limited exception in the  Income Tax Regulations  for property that is part of an eligible system that was previously operated in a qualifying manner. Such property is considered to be operated in the required manner during a period of deficiency, failure or shutdown of the system that is beyond the taxpayer's control if the taxpayer makes all reasonable efforts to rectify the problem within a reasonable time according to the circumstances.

As proposed in the 2023 Fall Economic Statement , similar rules would apply to the Clean Electricity investment tax credit with respect to systems that generate electricity, or both electricity and heat, from specified waste material. This would be extended to include systems that generate electricity, or both electricity and heat, from natural gas with carbon capture equipment.

Potential Repayment Obligations

The Clean Electricity investment tax credit would be subject to potential repayment obligations similar to the recapture rules proposed for the Clean Technology investment tax credit. In general, this means that over a ten-year period (or a 20-year period in the case of eligible natural gas energy systems) from the date of acquiring a particular eligible property, the tax credit could be repayable in proportion to the fair market value of the particular property when it has been converted to an ineligible use, exported from Canada, or disposed of.

Special Rules for Eligible Natural Gas Energy Systems

Systems that generate electricity, or both electricity and heat, from natural gas with carbon capture systems would be subject to a one-time verification of emissions intensity, based on a five-year compliance period.

Over the course of the five-year period, there would be a requirement to report on the emissions intensity of the energy that is produced annually by the system. At the end of the period, compliance would be assessed based on the weighted-average emissions intensity over the entire compliance period. The contribution of annual emissions intensity to the final emissions intensity would be weighted by the electricity and useful heat produced in each year.

Third-party emissions intensity verification reports would need to be submitted to Natural Resources Canada. The reports would have to be prepared by a Canadian engineering firm with an engineering certificate of authorization, appropriate insurance coverage, and expertise in auditing continuous emissions monitoring systems.

An average emissions intensity more than 5 per cent above the limit of 65 tonnes of carbon dioxide per gigawatt hour of energy produced would lead to a full recovery of the Clean Electricity investment tax credit.

After the five-year compliance period ends, there would be a requirement to continue producing emissions intensity reports annually for an additional 15 years. Over this period, an annual emissions intensity above the limit would be considered an ineligible use of the system, in accordance with the general repayment rules for this tax credit (described above under the heading Potential Repayment Obligations).

Interactions with Other Federal Tax Credits

Eligible corporations would be able to claim only one of the Clean Electricity investment tax credit, the Clean Technology investment tax credit, the Carbon Capture, Utilization, and Storage investment tax credit, the Clean Hydrogen investment tax credit, the Clean Technology Manufacturing investment tax credit and the Electric Vehicle Supply Chain investment tax credit, if a particular expenditure is eligible for more than one of these tax credits. However, multiple tax credits could be available for the same project, to the extent that the project includes expenditures eligible for different tax credits. For systems that generate electricity, or both electricity and heat, from natural gas with carbon capture, a project could not claim the Clean Electricity investment tax credit on the energy generation equipment and the Carbon Capture, Utilization, and Storage investment tax credit on the carbon capture equipment.

Eligible corporations would be able to fully benefit from both the Clean Electricity investment tax credit and the Atlantic investment tax credit with respect to the same expenditure, if the expenditure is eligible for both.

Proposed Application to Provincial and Territorial Crown Corporations

The Clean Electricity investment tax credit would be available to provincial and territorial Crown corporations only for investments made in eligible property situated in designated jurisdictions.

The federal Minister of Finance would designate a province or a territory, provided that the Minister was satisfied that the provincial or territorial government has:

• Work towards a net-zero electricity grid by 2035; and
• Provincial and territorial Crown corporations passing through the value of the Clean Electricity investment tax credit to electricity ratepayers in their province or territory to reduce ratepayers' bills.
• Directed provincial and territorial Crown corporations claiming the tax credit to publicly report annually on how the tax credit has improved ratepayers' bills.

Should a provincial or territorial Crown corporation claiming the tax credit not report annually on how the tax credit has improved ratepayers' bills, a penalty would be charged to that Crown corporation.

A provincial or territorial government would need to demonstrate that it has satisfied all of the above conditions, in order for provincial and territorial Crown corporations investing in that jurisdiction to gain access to the Clean Electricity investment tax credit. The federal Minister of Finance would then determine whether the conditions have been satisfied and, if so, would designate the province or territory.

The Department of Finance will consult with provinces and territories on the details of these conditions.

The Clean Electricity investment tax credit would apply to eligible property that is:

• acquired and becomes available for use on or after Budget Day and before 2035, provided it has not been used for any purpose before its acquisition; and
• not part of a project that began construction before March 28, 2023. For this purpose, construction would not include obtaining permits or regulatory approval, conducting environmental assessments, community consultations or impact assessment studies, or similar activities.

Similar rules would apply for eligible property acquired by provincial and territorial Crown corporations, with the following modifications:

• If a province or territorial government has satisfied all the conditions by March 31, 2025 and subsequently been designated by the Minister of Finance, then provincial and territorial Crown corporations investing in that jurisdiction would be able to access the Clean Electricity investment tax credit for property that is acquired and becomes available for use on or after Budget Day for projects that did not begin construction before March 28, 2023.
• If a provincial or territorial government has not satisfied all the conditions by March 31, 2025, then provincial and territorial Crown corporations investing in that jurisdiction would not be able to access the Clean Electricity investment tax credit until the province or territory is designated. The Clean Electricity investment tax credit would apply to property that is acquired and becomes available for use from the date when the province or territory is designated by the Minister of Finance, for projects that did not begin construction before March 28, 2023.

This measure is expected to have a positive environmental impact by encouraging investment in projects that would generally be expected to help reduce emissions of greenhouse gases and air pollutants, in support of Canada's targets set out in the Federal Sustainable Development Strategy. The measure would be expected to help Canada reach its goal of reducing greenhouse gas emissions by 40 to 45 per cent below 2005 levels by 2030 and achieving net-zero greenhouse gas emissions by 2050. It would also be expected to help Canada achieve its target of generating 90 per cent of electricity from renewable and non-emitting sources by 2030 and 100 per cent in the long term.

Positive environmental impacts could be partly offset to the extent that certain supported technologies release greenhouse gases as a result of fuel combustion, as well as particulate matter and other air pollutants that impact the environment and human health. In addition, upstream activities related to natural gas energy systems (e.g., natural gas extraction) can have negative environmental impacts, such as increased greenhouse gas emissions. However, the emissions intensity requirement of the investment tax credit ensures that only natural gas energy systems using carbon capture technology of the highest performance will be incentivized, ensuring that emissions are maximally reduced. Additionally, the combustion of waste biomass is generally viewed as carbon neutral on a lifecycle basis, and potentially carbon-negative when combined with carbon capture, utilization, and storage.

Budget 2023 proposed the Clean Technology Manufacturing investment tax credit, which would provide a refundable tax credit equal to 30 per cent of the cost of investments in eligible property used all or substantially all for eligible activities. Draft legislative proposals to implement the tax credit were released in December 2023.

As specified in the draft legislative proposals, eligible activities for the tax credit would include qualifying mineral activities producing all or substantially all qualifying materials (i.e., copper, nickel, cobalt, lithium, graphite, and rare earth elements). Qualifying mineral activities would consist of extraction; certain processing activities at mine or well sites, tailing ponds, mills, smelters, or refineries; certain recycling activities; and certain graphite activities.

Recognizing that the production of qualifying materials may occur at polymetallic projects (i.e., projects engaged in the production of multiple metals), Budget 2024 proposes adjustments to the Clean Technology Manufacturing investment tax credit to provide greater support and clarity to businesses engaged in these activities.

Use of Values

Budget 2024 proposes to clarify that the value of qualifying materials would be used as the appropriate output metric when assessing the extent to which property is used or is expected to be used for qualifying mineral activities producing qualifying materials.

"Primarily" Test for Property at Mine or Well Sites

Budget 2024 proposes to modify eligible expenditures to include investments in eligible property used in qualifying mineral activities that are expected to produce primarily qualifying materials at mine or well sites, including tailing ponds and mills located at these sites. The "primarily" test would generally mean that eligible property must be used or be expected to be used for activities in which 50 per cent or more of the financial value of the output comes from qualifying materials.

To support this expectation and a claim for the tax credit, businesses would be required to submit an attestation from an arm's-length qualified engineer or geoscientist to the Canada Revenue Agency for each relevant mine or well site.

Recapture and Safe Harbour Rule

As specified in the draft legislative proposals, where a property benefits from the tax credit and, within a ten-year period following its acquisition, is converted to a use in a non-qualifying activity (e.g., is no longer sufficiently used in qualifying mineral activities producing qualifying materials), the tax credit could be subject to recapture. For example, this could apply where the value of the materials extracted from a mine site is not primarily from qualifying materials.

To mitigate against the effects of mineral price volatility on the potential recapture of the tax credit, Budget 2024 also proposes to provide a safe harbour rule applicable to the recapture rule. Under the safe harbour rule, if the calculation of the expected production from the eligible property when claiming the tax credit is done using specified five-year historical average mineral prices, then the same specified mineral prices would be used to calculate the ratio of qualifying materials produced from the property over the ten-year recapture period. Details in respect to the design of the safe harbour rule will be provided at a later date.

The safe harbour rule would apply in respect of all qualifying mineral activities.

These changes would apply for property that is acquired and becomes available for use on or after January 1, 2024 (i.e., the same application date as the other aspects of the Clean Technology Manufacturing investment tax credit).

Increased investment in extraction and processing related to key critical minerals used in clean technologies can lead to lower prices of these minerals and technologies, which would encourage greater adoption of clean technologies in Canada, contributing to reductions in emissions of greenhouse gases and air particulates. This would help Canada meet its 2030 target of reducing total greenhouse gas emissions by 40 per cent to 45 per cent relative to 2005 levels.

However, increased extraction and mineral processing activities in Canada could negatively impact local habitats through increased soil erosion and mine runoff, increase emissions of greenhouse gases and air particulates, and increase production of industrial waste. This could offset some of the positive environmental impacts of the proposal. Also, environmental benefits in Canada could be reduced to the extent that key critical minerals and their associated technologies are exported outside of Canada.

The capital cost allowance (CCA) system determines the deductions that a business may claim each year for income tax purposes in respect of the capital cost of its depreciable property. Depreciable property is generally divided into CCA classes with each having its own rate in Schedule II to the Income Tax Regulations .

Purpose-Built Rental Housing

Currently, purpose-built rental buildings are eligible for a CCA rate of four per cent under Class 1.

Budget 2024 proposes to provide an accelerated CCA of ten per cent for new eligible purpose-built rental projects that begin construction on or after Budget Day and before January 1, 2031, and are available for use before January 1, 2036.

Consistent with eligibility under the temporary enhancement to the Goods and Services Tax (GST) New Residential Rental Property Rebate, eligible property would be new purpose-built rental housing that is a residential complex:

• with at least four private apartment units (i.e., a unit with a private kitchen, bathroom, and living areas), or 10 private rooms or suites; and
• in which at least 90 per cent of residential units are held for long-term rental.

Projects that convert existing non-residential real estate, such as an office building, into a residential complex would be eligible if the conditions above are met. The accelerated CCA would not apply to renovations of existing residential complexes. However, the cost of a new addition to an existing structure would be eligible, provided that addition meets the conditions above.

Interaction with the Accelerated Investment Incentive

Investments eligible for this measure would continue to benefit from the Accelerated Investment Incentive, which currently suspends the half-year rule, providing a CCA deduction at the full rate for eligible property put in use before 2028.

After 2027, the half-year rule would apply, which limits the CCA allowance in the year an asset is acquired to one-half of the full CCA deduction.

Productivity-Enhancing Assets

Currently, assets included in Class 44 (patents or the rights to use patented information for a limited or unlimited period), Class 46 (data network infrastructure equipment and related systems software), and Class 50 (general-purpose electronic data-processing equipment and systems software) are prescribed CCA rates of 25 per cent, 30 per cent, and 55 per cent, respectively.

Budget 2024 proposes to provide immediate expensing for new additions of property in respect of these three classes, if the property is acquired on or after Budget Day and becomes available for use before January 1, 2027. The enhanced allowance would provide a 100-per-cent first-year deduction and would be available only for the year in which the property becomes available for use.

Property that becomes available for use after 2026 and before 2028 would continue to benefit from the Accelerated Investment Incentive.

Restrictions

Property that has been used, or acquired for use, for any purpose before it is acquired by the taxpayer would be eligible for the accelerated CCA only if both of the following conditions are met:

• neither the taxpayer nor a non-arm's-length person previously owned the property; and
• the property has not been transferred to the taxpayer on a tax-deferred "rollover" basis.

Short taxation year

Under the short taxation-year rule, the amount of CCA that can be claimed in a taxation year must generally be prorated when the taxation year is less than 12 months. When this rule applies, the accelerated CCA would apply in respect of an eligible property on the same prorated basis and would not be available in the following taxation year in respect of the property.

Currently, the federal backstop pollution pricing fuel charge applies in the provinces of Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador. In each of these provinces, the federal government returns more than 90 per cent of direct proceeds from the fuel charge to individuals through the Canada Carbon Rebate. Proceeds relating specifically to the use of natural gas and propane by farmers are returned to farmers via a refundable tax credit. The government has committed to return the remainder of fuel charge proceeds to Indigenous governments and small and medium-sized businesses. All direct proceeds collected are returned in their province of origin.

In respect of the government's commitment to small and medium-sized businesses, Budget 2024 proposes to return a portion of fuel charge proceeds from a province via the new Canada Carbon Rebate for Small Businesses, an automatic, refundable tax credit directly for eligible businesses, sized in proportion to the number of persons they employ in the province.

Eligible Businesses

With respect to the 2019-20 to 2023-24 fuel charge years, the tax credit would be available to a Canadian-controlled private corporation that files a tax return for its 2023 taxation year by July 15, 2024. Additionally, to be eligible for a credit in respect of an applicable fuel charge year, the corporation would need to have had no more than 499 employees throughout Canada in the calendar year in which the fuel charge year begins.

For instance, eligibility for receiving a payment in respect of the 2022-23 fuel charge year would be based on the number of persons employed by the eligible corporation for the 2022 calendar year.

Automatic Payments

Corporations would not have to apply for this tax credit. The Canada Revenue Agency would automatically determine the tax credit amount for an eligible corporation and pay the amount to the eligible corporation through the new Canada Carbon Rebate for Small Businesses.

Credit Determination

The tax credit amount in respect of an eligible corporation for an applicable fuel charge year would be determined for each applicable province in which the eligible corporation had employees in the calendar year in which the fuel charge year begins. The tax credit amount would be equal to the number of persons employed by the eligible corporation in the province in that calendar year multiplied by a payment rate specified by the Minister of Finance for the province for the corresponding fuel charge year.

The Minister of Finance will specify payment rates for the 2019-20 to 2023-24 fuel charge years once sufficient information is available from the 2023 taxation year.

The tax credit would return proceeds for future fuel charge years, including 2024-25, in a similar manner. That is, a payment rate would be specified for each applicable province for a particular fuel charge year, and a payment made to an eligible corporation that has filed a tax return for a taxation year ending in the calendar year in which the fuel charge year begins.

In response to the recommendations under Action 4 of the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project, Budget 2021 announced an earnings stripping measure that limits the amount of net interest and financing expenses that may be deducted by certain taxpayers in computing taxable income. Legislative proposals to implement this measure (the excessive interest and financing expenses limitation (EIFEL) rules) are currently before Parliament in Bill C-59.

The EIFEL rules provide an exemption for interest and financing expenses incurred in respect of arm's length financing for certain public-private partnership infrastructure projects.

Budget 2024 proposes expanding this exemption to also include an elective exemption for certain interest and financing expenses incurred before January 1, 2036, in respect of arm's length financing used to build or acquire eligible purpose-built rental housing in Canada. 

Consistent with eligibility under the temporary enhancement to the Goods and Services Tax (GST) New Residential Rental Property Rebate and the proposed Accelerated Capital Cost Allowance for Purpose-Built Rental Housing included in Budget 2024, eligible purpose-built rental housing would be a residential complex:

This change would apply to taxation years that begin on or after October 1, 2023 (i.e., consistent with broader EIFEL amendments).

Limits to existing information gathering powers provided to the Canada Revenue Agency (CRA) under the Income Tax Act impede the effectiveness of the CRA's compliance and enforcement actions. The 2018 Report of the Office of the Auditor General noted that the provision of information by some taxpayers lagged for months or even years, making it more difficult for the CRA to collect tax owing.

Budget 2024 proposes several amendments to the information gathering provisions in the Income Tax Act . These proposed amendments are intended to enhance the efficiency and effectiveness of tax audits and facilitate the collection of tax revenues on a timelier basis. Analogous amendments are also proposed to other federal tax statutes administered by the CRA. Budget 2024 also proposes certain technical amendments to ensure the rules meet their policy objectives.

Notice of Non-Compliance

Budget 2024 proposes to amend the Income Tax Act toallow the CRA to issue a new type of notice (referred to as a "notice of non-compliance") to a person that has not complied with a requirement or notice to provide assistance or information issued by the CRA. The issuance of a notice of non-compliance would be reviewable by the CRA on request of the person. After reconsideration, the notice of non-compliance would be vacated if the CRA determines that it was unreasonable to issue the notice of non-compliance or that the person had reasonably complied, at the time the notice of non-compliance was issued, with the initial requirement or notice. There would be a further statutory right of review by a judge of the Federal Court.

Where a notice of non-compliance related to a taxpayer has been issued to the taxpayer or a person that does not deal at arm's length with the taxpayer, the normal reassessment period for any taxation year of the taxpayer to which the notice of non-compliance relates would be extended by the period of time the notice of non-compliance is outstanding.

To further improve compliance with information requests, Budget 2024 proposes to impose a penalty on a person that has been issued a notice of non-compliance of $50 for each day that the notice is outstanding, to a maximum of $25,000. This penalty would not apply if a notice of non-compliance is ultimately vacated by the CRA or a court.

Questioning Under Oath

Budget 2024 proposes to amend the Income Tax Act to allow the CRA to include in a requirement or notice that any required information (oral or written) or documents be provided under oath or affirmation.

Compliance Orders

Currently, the CRA can obtain a compliance order from a court that directs a non-compliant taxpayer to comply with the CRA's information requests. However, the use of compliance orders has generally not been effective in compelling compliance. This is because the primary consequence for not complying is a contempt order, which is time consuming to obtain and does not generally impose a material financial cost on the taxpayer.

Budget 2024 proposes to amend the Income Tax Act to impose a penalty when the CRA obtains a compliance order against a taxpayer. The penalty would be equal to 10 per cent of the aggregate tax payable by the taxpayer in respect of the taxation year or years to which the compliance order relates. The proposed penalty, which would apply when the CRA is successful in obtaining a compliance order, would create an incentive for taxpayers to comply with the original request for information or assistance. The penalty would only be applied if the tax owing in respect of one of the taxation years to which the compliance order relates exceeds $50,000.

Budget 2024 further proposes an amendment to allow the CRA to seek a compliance order when a person has failed to comply with a requirement to provide foreign-based information or documents.

Stopping the Reassessment Limitation Clock

Under existing rules, a taxpayer may seek judicial review of a requirement or notice issued to the taxpayer by the CRA. In these circumstances, the reassessment period is extended by the amount of time it takes to dispose of the judicial review. An analogous rule applies in respect of a compliance order. These rules are intended to ensure that the CRA has the time to properly review any information obtained before expiry of the statutory reassessment period fixed by the Income Tax Act . These "stop the clock" rules currently do not apply to all situations where a taxpayer does not comply with a requirement or notice issued by the CRA.

Budget 2024 proposes to amend the stop the clock rules to provide that they apply when a taxpayer seeks judicial review of any requirement or notice issued to the taxpayer by the CRA in relation to the audit and enforcement process or during any period that a notice of non-compliance is outstanding. Analogous rules would apply where a requirement or notice has been issued to a person that does not deal at arm's length with the taxpayer.

Other Tax Statutes Administered by the CRA

Budget 2024 proposes that other tax statutes administered by the CRA, which have provisions similar to the Income Tax Act , also be amended, as needed, to address the issues discussed above. Those statutes include the Excise Tax Act (e.g., GST/HST, fuel excise tax), Air Travellers Security Charge Act , Excise Act, 2001 (alcohol, tobacco, cannabis, and vaping duties), the Underused Housing Tax Act , and the Select Luxury Items Tax Act .

These amendments would come into force on royal assent of the enacting legislation.

The Income Tax Act includes an anti-avoidance rule that is intended to prevent taxpayers from avoiding paying their tax liabilities by transferring their assets to non-arm's length persons. The effect of this tax debt avoidance rule is to make the transferee jointly and severally, or solidarily, liable with the transferor for the transferor's tax debts, to the extent that the value of the property transferred exceeds the amount of consideration given by the transferee for the property.

The Income Tax Act contains a number of rules that address various planning techniques employed by taxpayers in an attempt to circumvent the tax debt avoidance rule, as well as a penalty for those who engage in, participate in, assent to, or acquiesce in planning activity that they know, or would reasonably be expected to know, is tax debt avoidance planning.

Some taxpayers continue to engage in planning that is intended to circumvent the tax debt avoidance rule, often with the assistance of a planner who receives a significant fee that is effectively funded by a portion of the avoided tax debt.

Although this planning can be challenged by the government based on existing rules in the Income Tax Act , these challenges can be both time-consuming and costly. As a result, the government is proposing a specific legislative measure.

Budget 2024 proposes to introduce a supplementary rule to strengthen the tax debt anti-avoidance rule. This rule would apply in the following circumstances:

• there has been a transfer of property from a tax debtor to another person;
• as part of the same transaction or series of transactions, there has been a separate transfer of property from a person other than the tax debtor to a transferee that does not deal at arm's length with the tax debtor; and
• one of the purposes of the transaction or series is to avoid joint and several, or solidary, liability.

Where these conditions are met, the property transferred by the tax debtor would be deemed to have been transferred to the transferee for the purposes of the tax debt avoidance rule. This would ensure that the tax debt avoidance rule applies in situations where property has been transferred from a tax debtor to a person and, as part of the same transaction or series, property has been received by a non-arm's length person. 

The Income Tax Act contains a penalty for those who engage in, participate in, assent to, or acquiesce in planning activity that they know, or would reasonably be expected to know, is tax debt avoidance planning. The penalty is equal to the lesser of:

• 50 per cent of the tax that is attempted to be avoided; and
• $100,000 plus any amount the person, or a related person, is entitled to receive or obtain in respect of the planning activity.

Budget 2024 proposes to extend this penalty to tax debt avoidance planning that is subject to the proposed supplementary rule.

Expanded Joint and Several, or Solidary, Liability

As noted above, in many cases tax debt avoidance planning is facilitated by a planner who receives a significant fee that is effectively funded by a portion of the avoided tax debt. The courts have held that a taxpayer who engages in tax debt avoidance planning is normally not jointly and severally, or solidarily, liable for the portion of the tax debt that has effectively been retained by the planner as a fee. This remains the case even where the amount retained by the planner is moved offshore and out of the reach of the Canada Revenue Agency.

To further enhance the effectiveness of the tax debt anti-avoidance rule, Budget 2024 proposes that taxpayers who participate in tax debt avoidance planning be jointly and severally, or solidarily, liable for the full amount of the avoided tax debt, including any portion that has effectively been retained by the planner.

Similar Statutes

Similar amendments would be made to comparable provisions in other federal statutes (e.g., the Excise Tax Act , the Excise Act, 2001 , the Select Luxury Items Tax Act , and the Underused Housing Tax Act ).

These measures would apply to transactions or series of transactions that occur on or after Budget Day.

The Income Tax Act includes a general provision that provides that a person who fails to file or make a return or comply with certain specified rules is guilty of an offence, and liable to penalties up to $25,000 and imprisonment up to a year. The mandatory disclosure rules in the Income Tax Act also include specific penalties that apply in these circumstances, making the application of this general penalty provision unnecessary.

Budget 2024 announces the government's intention to remove from the scope of this general penalty provision the failure to file an information return in respect of a reportable or notifiable transaction under the mandatory disclosure rules.

This amendment would be deemed to have come into force on June 22, 2023.

A mutual fund is a type of investment vehicle that allows investors to pool their money and invest in a portfolio of investments without purchasing the investments directly. A mutual fund corporation is a mutual fund organized as a corporation that meets certain conditions set out in the Income Tax Act.

The Income Tax Act includes special rules for mutual fund corporations that facilitate conduit treatment for investors (shareholders). For example, these rules generally allow capital gains realized by a mutual fund corporation to be treated as capital gains realized by its investors. In addition, a mutual fund corporation is not subject to mark-to-market taxation and can elect capital gains treatment on the disposition of Canadian securities.

To qualify as a mutual fund corporation under the Income Tax Act , a corporation must satisfy several conditions, including that the corporation is a "public corporation", which may be satisfied where a class of shares of the corporation is listed on a designated stock exchange in Canada. These conditions are premised on the idea of a mutual fund corporation being widely held. However, a corporation controlled by a corporate group may qualify as a mutual fund corporation even though it is not widely held.

A corporation can qualify as a mutual fund corporation under the Income Tax Act if a class of its shares is listed on a designated stock exchange in Canada, even if all other shares of the corporation are held by a corporate group and those shares represent all or substantially all of the fair market value of the issued shares of the corporation. This could allow a corporate group to use a mutual fund corporation to benefit from the special rules available to these corporations in an unintended manner .

Although using a mutual fund corporation to defer or avoid income taxes by a corporate group can be challenged by the government based on existing rules in the Income Tax Act , these challenges can be both time-consuming and costly.

Budget 2024 proposes amendments to the Income Tax Act to preclude a corporation from qualifying as a mutual fund corporation where it is controlled by or for the benefit of a corporate group (including a corporate group that consists of any combination of corporations, individuals, trusts, and partnerships that do not deal with each other at arm's length). Exceptions would be provided to ensure that the measure does not adversely affect mutual fund corporations that are widely held pooled investment vehicles.

This measure would apply to taxation years that begin after 2024.

The  Income Tax Act  allows a corporation to deduct the amount of any dividends received on a share of a corporation resident in Canada, subject to certain limitations.

One of these limitations is an anti-avoidance rule that denies the dividend received deduction in respect of synthetic equity arrangements. Synthetic equity arrangements include agreements that provide all or substantially all of the risk of loss and opportunity for gain or profit (the "economic exposure") in respect of a share to another person.

Where a taxpayer enters into a synthetic equity arrangement in respect of a share, the taxpayer is generally obligated to compensate the other person for the amount of any dividends paid on the share. This compensation payment may result in a tax deduction for the taxpayer in addition to the dividend received deduction. Unless the anti-avoidance rule applies to deny the dividend received deduction, a tax loss would generally arise as a result of the two deductions.

The anti-avoidance rule incorporates certain exceptions, including where the taxpayer establishes that no tax-indifferent investor has all or substantially all of the economic exposure in respect of the share. An associated exception is also available for synthetic equity arrangements traded on a derivatives exchange. 

Budget 2024 proposes to remove the tax-indifferent investor exception (including the exchange traded exception) to the anti-avoidance rule. This measure would simplify the anti-avoidance rule and prevent taxpayers from claiming the dividend received deduction for dividends received on a share in respect of which there is a synthetic equity arrangement.

This measure would apply to dividends received on or after January 1, 2025.

Under the Income Tax Act , losses and other tax attributes that arise from expenditures for which a taxpayer did not ultimately bear the cost are generally not recognized. The Income Tax Act contains a set of debt forgiveness rules that apply where a commercial debt is settled for less than its principal amount. These rules generally reduce tax attributes by the amount of debt that is forgiven and, where tax attributes have been fully reduced, the rules cause an income inclusion equal to half of the remaining forgiven amount. The Act also contains a rule that entitles an insolvent corporation to a corresponding deduction to offset all or part of an income inclusion from the debt forgiveness rules.

Bankrupt taxpayers are generally excluded from these debt forgiveness rules. Instead, a separate loss restriction rule applies to extinguish the losses of bankrupt corporations that have received an absolute order of discharge.   

Some taxpayers have sought to manipulate the bankrupt status of an insolvent corporation, with a view to benefiting from the exception in the debt forgiveness rules while also avoiding the loss restriction rule applicable to bankrupt corporations. This planning seeks to preserve the losses and other tax attributes of the insolvent corporation (which would otherwise be eliminated upon the forgiveness of its debts) for their acquisition and use in avoiding corporate income tax by a profitable corporation.

Although the manipulation of bankrupt status can be challenged by the government based on existing rules in the Income Tax Act , these challenges can be both time-consuming and costly. As a result, the government is proposing a specific legislative measure.

Budget 2024 proposes to repeal the exception to the debt forgiveness rules for bankrupt corporations and the loss restriction rule applicable to bankrupt corporations. This change would subject bankrupt corporations to the general rules that apply to other corporations whose commercial debts are forgiven. The bankruptcy exception to the debt forgiveness rules would remain in place for individuals. While bankrupt corporations would be subject to the reduction of their loss carryforward balances and other tax attributes upon debt forgiveness, as insolvent corporations they could qualify for relief from the debt forgiveness income inclusion rule provided under the existing deduction for insolvent corporations.

These proposals would apply to bankruptcy proceedings that are commenced on or after Budget Day.

International Tax Measures

Exchange of tax information between national revenue agencies is an important tool for combating offshore tax evasion. The Common Reporting Standard (CRS) is the global standard developed and endorsed by the Organization for Economic Cooperation and Development (OECD) for the automatic exchange of financial information for tax purposes. Under Canada's implementation of the CRS in the Income Tax Act , Canadian financial institutions report to the Canada Revenue Agency information on financial accounts held in Canada by non-residents. The Canada Revenue Agency shares this information with foreign tax authorities. In exchange, Canada receives information on financial accounts held by Canadian residents outside of Canada.

Crypto-Asset Reporting Framework

Since the implementation of the CRS, financial markets have continued to evolve. One major development is the emergence of crypto-assets (including stablecoins, derivatives issued in the form of a crypto-asset, and certain non-fungible tokens), which can be transferred or held without interacting with traditional financial intermediaries and do not need to be reported under the CRS. To ensure appropriate reporting, the OECD has developed a new framework (referred to as the Crypto-Asset Reporting Framework, or CARF) that provides for the automatic exchange of tax information in relation to transactions in crypto-assets.

Budget 2024 proposes to implement the CARF in Canada. The measure would impose a new annual reporting requirement in the Income Tax Act on entities and individuals (referred to as crypto-asset service providers) that are resident in Canada, or that carry on business in Canada, and that provide business services effectuating exchange transactions in crypto-assets. This would include crypto exchanges, crypto-asset brokers and dealers, and operators of crypto-asset automated teller machines.

Crypto-asset service providers would be required to report to the Canada Revenue Agency, in respect of each customer and in respect of each crypto-asset, the annual value of:

• exchanges between the crypto-asset and fiat currencies;
• exchanges for other crypto-assets; and
• transfers of the crypto-asset, including the requirement to report information in respect of a customer of a merchant where the crypto-asset service provider processes payments on behalf of the merchant and the customer has transferred crypto-assets to the merchant in exchange for goods or services with a value exceeding US$50,000.

Reportable crypto-assets would exclude central bank digital currencies and specified electronic money products (e.g., digital representations of fiat currencies), which would be reportable under the amendments to the CRS described below.

In addition to information on crypto-asset transactions, crypto-asset service providers would be required to obtain and report information on each of their customers, including name, address, date of birth, jurisdiction(s) of residence, and taxpayer identification numbers for each jurisdiction of residence. If a customer is a corporation or other legal entity, the same information would need to be collected and reported in respect of the natural persons who exercise control over the entity. Reporting would be required with respect to both Canadian resident and non-resident customers.

Common Reporting Standard

Budget 2024 also proposes to implement amendments to the CRS that have been endorsed by the OECD in connection with the CARF. The changes would broaden the scope of the CRS to include specified electronic money products and central bank digital currencies which are not covered by the CARF. The amendments would also ensure effective coordination between the CRS and the CARF and limit instances of duplicative reporting between the two frameworks. Other changes would require that additional information be reported in respect of financial accounts and account holders and would strengthen the due diligence procedures financial institutions are required to follow.

In response to recommendations of the Global Forum on Transparency and Exchange of Information for Tax Purposes, Budget 2024 proposes two other changes to the CRS.

• First, the CRS would be amended to remove Labour-Sponsored Venture Capital Corporations (LSVCCs) from the list of non-reporting financial institutions and treat a non-registered account held in an LSVCC as an excluded account provided that annual contributions to the account do not exceed US$50,000. This would generally extend the same treatment to non-registered accounts currently available to registered accounts, e.g., Registered Retirement Savings Plans, which already qualify as excluded accounts. Due diligence and reporting requirements do not apply in respect of excluded accounts.
• Second, the anti-avoidance provision of the CRS would be amended to clarify that it applies when an individual or any entity enters into an arrangement or engages in a practice, if it can reasonably be considered that the primary purpose is to avoid an obligation of any person under the CRS.

These measures would apply to the 2026 and subsequent calendar years. This would allow the first reporting and exchange of information under the CARF and amended CRS to take place in 2027 with respect to the 2026 calendar year.

Existing income tax rules require a person who pays a non-resident for services provided in Canada to withhold 15 per cent of the payment and remit it to the Canada Revenue Agency (CRA). This acts as a pre-payment of any Canadian tax that the non-resident may ultimately owe. Canada generally taxes non-residents on their income from carrying on business in Canada. However, many non-resident service providers do not ultimately owe Canadian tax either because they do not have a permanent establishment in Canada under an applicable tax treaty, or because the service is international shipping or operating an aircraft in international traffic, both of which are generally exempt from Canadian tax.

Non-resident service providers with no Canadian tax liability may apply to the CRA for an advance waiver of the withholding requirement for a specific planned transaction. Alternatively, they may apply for a refund of the withheld amounts. However, many non-resident service providers instead pass the cost of the withholding requirement on to the payors. This increases costs for Canadians.

Budget 2024 proposes to provide the CRA with the legislative authority to waive the withholding requirement, over a specified period, for payments to a non-resident service provider if either of the following conditions are met:

• the non-resident would not be subject to Canadian income tax in respect of the payments because of a tax treaty between its country of residence and Canada; or
• the income from providing the services is exempt income from international shipping or from operating an aircraft in international traffic.

This proposal would allow the CRA to waive the withholding requirement on multiple transactions with a single waiver, subject to any conditions and information requirements necessary to reduce compliance risks.

This measure would come into force on royal assent of the enacting legislation.

Sales and Excise Tax Measures

On September 14, 2023, the government announced that it would temporarily remove the Goods and Services Tax (GST) from new purpose-built rental housing projects, such as apartment buildings, student housing, and senior residences built specifically for long-term rental accommodation.

The removal of the GST is being implemented through an Enhanced (100-per-cent) GST Rental Rebate for new qualifying purpose-built rental housing projects.

Qualifying purpose-built rental housing units include those that are part of a residential complex

• that contains at least four private apartment units or at least 10 private rooms or suites; and
• in which all or substantially all of the residential units meet the conditions for the existing GST Rental Rebate.

The Enhanced GST Rental Rebate applies to projects that begin construction after September 13, 2023 and before 2031, and that complete construction before 2036.

Universities, Public Colleges, and School Authorities

Under the existing GST/Harmonized Sales Tax (HST) rules in the Excise Tax Act , universities, public colleges, and school authorities are not eligible for a GST Rental Rebate in respect of new student housing they provide. This is due to the often temporary nature of student residences and the special GST/HST rules that apply to these entities.

Rental Rebate Conditions

One of the main eligibility conditions for a GST Rental Rebate is that the unit is for long-term rental. In this regard, the Excise Tax Act generally requires that the unit's first use be as the primary place of residence for an individual under a lease for a period of at least 12 months. However, many universities, public colleges, and school authorities would likely not meet this condition in respect of traditional student residences due to the more temporary nature of the housing.

Special GST Rules

When universities, public colleges, and school authorities build a new residence for their students, they are not subject to the normal GST/HST rules for builders, which require tax to be paid on the final value of a newly constructed residential complex. Instead, they are subject to a special set of relieving GST/HST rules under which they only incur GST/HST on their construction inputs. However, because of this, there is no final tax amount, which is the amount on which the GST Rental Rebates are based.

Proposed Modifications

To ensure that universities, public colleges, and school authorities can claim the Enhanced (100-per-cent) GST Rental Rebate, Budget 2024 proposes to modify the Excise Tax Act to allow them to apply the normal GST/HST rules that apply to other builders (i.e., paying GST/HST on the final value of the building) in respect of new student housing projects.

Additionally, Budget 2024 proposes to amend the Excise Tax Act and its regulations to relax the rebate conditions for new student housing provided by universities, public colleges, and school authorities that operate on a not-for-profit basis. These are generally educational institutions that would currently qualify for the Public Service Body rebates under the GST/HST.

The relaxed rebate conditions would allow these entities to claim the 100-per-cent rebate in respect of any new student residence that they acquire or construct provided it is primarily for the purpose of providing a place of residence for their students. That is, it would no longer be necessary that the first use of a unit in the student housing project be as a primary place of residence of an individual under a lease for a period of at least 12 months.

The relaxed rebate conditions would not be extended to universities, public colleges, and school authorities that operate on a for-profit basis.

The proposed measures would apply to student residences that begin construction after September 13, 2023 and before 2031, and that complete construction before 2036.

Budget 2024 proposes to amend the Excise Tax Act to repeal the temporary zero-rating of certain face masks or respirators and certain face shields under the GST/HST. The temporary relief announced in the 2020 Fall Economic Statement was proposed to be in effect until the use of face coverings was no longer broadly recommended by public health officials for the COVID-19 pandemic.

This measure would apply to supplies made on or after May 1, 2024.

Excise Duty on Tobacco

Budget 2024 announces the Government's intention to increase the tobacco excise duty rate by $4 per carton of 200 cigarettes (i.e., for a total of $5.49 including the automatic inflationary adjustment of $1.49 per carton of 200 cigarettes that took effect on April 1, 2024), along with corresponding increases to the excise duty rates for other tobacco products outlined in Table 2.

Inventories of cigarettes held by certain manufacturers, importers, wholesalers and retailers at the beginning of the day after Budget Day would be subject to an inventory tax of $0.02 per cigarette (subject to certain exemptions) to account for the $4 increase. Taxpayers would have until June 30, 2024 to file a return and pay the cigarette inventory tax.

This measure would come into force on the day after Budget Day.

Importation Limit for Packaged Raw Leaf Tobacco for Personal Use

Currently under the Excise Act, 2001 , no one is allowed to possess or import unstamped tobacco products unless an exemption applies. One of the exemptions is that the products are imported for personal use in quantities not in excess of prescribed limits (e.g., five cartons of cigarettes). There is currently no limit on importation of packaged raw leaf tobacco for personal use.

Budget 2024 proposes to provide a new prescribed limit of up to 2500 grams of packaged raw leaf tobacco for importation for personal use. Consequential to the imposition of the new importation limit, Budget 2024 also proposes to amend the definition of "packaged" for raw leaf tobacco to ensure the proper enforcement of the new limit for importation, and to better reflect current business practices.

This measure would come into force on the first day of the month following royal assent to the enabling legislation.

Process for Prescribing Tobacco Products

Brands of tobacco products that are destined for the export market must be prescribed by regulation before the products can be exported without markings and the imposition of a special excise duty. Applications need to be made to the Canada Revenue Agency for eligibility assessments, and the Canada Revenue Agency would in turn recommend qualifying brands for prescription through the regulatory process.

To improve the administration of the current process, Budget 2024 proposes to replace the prescription through the regulatory process with an authorization for the Minister of National Revenue to specify the brands of tobacco products for export that are exempted from the special excise duty and marking requirement.

Requiring Information Returns from Tobacco Prescribed Persons

Persons that are prescribed by regulation (i.e., "prescribed persons") may be issued excise stamps for either tobacco products or vaping products, stamps they may then provide to overseas manufacturers of those products to allow the eventual importation of stamped products into Canada. Generally, prescribed persons do not manufacture tobacco or vaping products in Canada, and excise duties are paid once the products are imported into Canada.

Prescribed persons that are issued vaping excise stamps are currently required to file information returns each month, but the same requirement does not apply to prescribed persons that are issued tobacco excise stamps.

To improve controls and accountability for tobacco excise stamps, Budget 2024 proposes to require tobacco prescribed persons to file information returns for tobacco excise stamps.

Excise Duty on Vaping Products

Budget 2024 announces the Government's intention to increase the vaping product excise duty rate as outlined in Table 3.

This proposed increase would also apply to the additional duty imposed in respect of participating jurisdictions under the coordinated vaping product taxation framework. This measure would come into force on July 1, 2024; i.e., the same day as the effective date for the introduction of the coordinated vaping product taxation regime for Ontario, Quebec, the Northwest Territories, and Nunavut.

Sharing of Confidential Information

Currently, under the Excise Act, 2001 , the Canada Revenue Agency is allowed to share confidential information for the purposes of administration or enforcement of the Cannabis Act .

To enhance collaboration between the Canada Revenue Agency and Health Canada in their respective responsibilities with regard to tobacco and vaping products, Budget 2024 proposes to amend the Excise Act, 2001 to allow the Canada Revenue Agency to share confidential information for the purposes of the administration or enforcement of the Tobacco and Vaping Products Act .

This measure would come into force upon royal assent to the enabling legislation.

Other Tax Measures

The First Nations Goods and Services Tax Act provides a legislative framework for interested Indigenous governments to levy broad-based value-added taxes, referred to as the First Nations Goods and Services Tax (FNGST), that are fully harmonized with the federal Goods and Services Tax (GST) or federal component of Harmonized Sales Tax (HST), including applying at the same rate (five per cent).

Budget 2024 proposes to amend the First Nations Goods and Services Tax Act to provide additional flexibility to Indigenous governments seeking to exercise tax jurisdiction on their lands. Specifically, the amendments would enable Indigenous governments to enact a value-added sales tax, under their own laws, on fuel, alcohol, cannabis, tobacco, and vaping (FACT) products within their reserves or settlement lands. The FACT sales tax would be analogous to the FNGST, including applying at the same five per cent GST rate, but would be limited to fuel, alcohol, cannabis, tobacco, and vaping products.

Indigenous governments would have the choice to levy FACT sales taxes and would have the flexibility to choose which FACT product(s) to tax. These taxes would be implemented through negotiated tax administration agreements between the federal government and interested Indigenous governments. FACT sales taxes would apply to all persons buying the taxed FACT products sold on the lands of an opt-in Indigenous government. On products for which an Indigenous FACT sales tax applies, the federal GST, or federal component of HST, would not apply.

Among other administrative matters, tax administration agreements would include provisions for the appropriate sharing of tax room between Indigenous governments and Canada in circumstances where Indigenous government FACT revenues are generated primarily from persons who would otherwise pay the federal GST or federal component of HST.

The government intends to propose amendments to the First Nations Goods and Services Tax Act to enable FACT sales taxes and streamline administration of taxes under that Act. Additional engagement and negotiation of tax administration agreements would be required prior to implementation of value-added FACT taxes by interested Indigenous governments.

Budget 2024 confirms the government's intention to proceed with the following previously announced tax and related measures, as modified to take into account consultations, deliberations, and legislative developments, since their release.

• Legislative proposals released on March 9, 2024, to extend by two years the two per cent cap on the inflation adjustment on beer, spirit, and wine excise duties, and to cut by half for two years the excise duty rate on the first 15,000 hectolitres of beer brewed in Canada.
• The Clean Hydrogen investment tax credit;
• The Clean Technology Manufacturing investment tax credit;
• Concessional Loans;
• Short-Term Rentals;
• Vaping Excise Duties; and
• International Shipping.
• The Canadian journalism labour tax credit;
• Proposed expansion of eligibility for the Clean Technology and Clean Electricity investments tax credits to support generation of electricity and heat from waste biomass;
• The addition of psychotherapists and counselling therapists to the list of health care practitioners whose professional services rendered to individuals are exempt from the Goods and Services Tax/Harmonized Sales Tax (GST/HST);
• Proposals relating to the GST/HST joint venture election rules;
• The application of the enhanced (100-per-cent) GST Rental Rebate to qualifying co-operative housing corporations; and
• Proposals relating to the Underused Housing Tax.
• Regulatory proposals released on November 3, 2023, to temporarily pause the federal fuel charge on deliveries of heating oil.
• Legislative and regulatory amendments to implement the enhanced (100-per-cent) GST Rental Rebate for purpose-built rental housing announced on September 14, 2023.
• The Carbon Capture, Utilization, and Storage investment tax credit;
• The Clean Technology investment tax credit;
• Labour Requirements Related to Certain investment tax credits;
• Enhancing the Reduced Tax Rates for Zero-Emission Technology Manufacturers;
• Flow-Through Shares and the Critical Mineral Exploration Tax Credit – Lithium from Brines;
• Employee Ownership Trusts;
• Retirement Compensation Arrangements;
• Strengthening the Intergenerational Business Transfer Framework;
• The Income Tax and GST/HST Treatment of Credit Unions;
• The Alternative Minimum Tax for High-Income Individuals;
• A Tax on Repurchases of Equity;
• Modernizing the General Anti-Avoidance Rule;
• Global Minimum Tax (Pillar Two);
• Digital Services Tax;
• Technical amendments to GST/HST rules for financial institutions;
• Providing relief in relation to the GST/HST treatment of payment card clearing services;
• Enhancements to the vaping product taxation framework;
• Tax-exempt sales of motive fuels for export;
• Excessive Interest and Financing Expenses Limitations;
• Extending the quarterly duty remittance option to all licensed cannabis producers;
• Revised Luxury Tax draft regulations to provide greater clarity on the tax treatment of luxury items; and
• Technical tax amendments to the  Income Tax Act  and the  Income Tax Regulations .
• Legislative amendments to implement changes discussed in the transfer pricing consultation paper released on June 6, 2023.
• Tax measures announced in Budget 2023, including the Dividend Received Deduction by Financial Institutions.
• Substantive Canadian-Controlled Private Corporations;
• Technical amendments to the  Income Tax Act  and  Income Tax Regulations ; and
• Remaining legislative and regulatory proposals relating to the GST/HST, excise levies and other taxes and charges announced in the August 9, 2022 release.
• Legislative amendments to implement the Hybrid Mismatch Arrangements rules announced in Budget 2021.
• Legislative proposals released in Budget 2021 with respect to the Rebate of Excise Tax for Goods Purchased by Provinces.
• Regulatory proposals released in Budget 2021 related to information requirements to support input tax credit claims under the GST/HST.
• The income tax measure announced on December 20, 2019, to extend the maturation period of amateur athlete trusts maturing in 2019 by one year, from eight years to nine years.

Budget 2024 also reaffirms the government's commitment to move forward as required with other technical amendments to improve the certainty and integrity of the tax system.

Page details

Language selection

• Français fr

Latest border and travel measures

This news release may not reflect the current border and travel measures. Check COVID-19: Travel, testing and borders for the latest requirements to enter Canada.

Important notice

Note that information and resources on the coronavirus (COVID-19) are available on Canada.ca. https://www.canada.ca/en/public-health/services/diseases/coronavirus-disease-covid-19.html

Government of Canada expands restrictions to international travel by land and air

From: Public Health Agency of Canada

News release

The Government of Canada is announcing today further testing and quarantine requirements for international travellers arriving to Canada’s air and land ports of entry. These new measures will help prevent variants of concern from reaccelerating the pandemic and making it more difficult to contain.

February 12, 2021 | Ottawa, ON | Government of Canada

Canada has some of the strictest travel and border measures in the world, including a mandatory 14-day quarantine for everyone returning to the country. With new COVID-19 variant detections increasing in the country, the Government of Canada is announcing today further testing and quarantine requirements for international travellers arriving to Canada’s air and land ports of entry. These new measures will help prevent variants of concern from reaccelerating the pandemic and making it more difficult to contain.

For travellers arriving to Canada by land, as of February 15, 2021, all travellers, with some exceptions, will be required to provide proof of a negative COVID-19 molecular test result taken in the United States within 72 hours of pre-arrival, or a positive test taken 14 to 90 days prior to arrival. In addition, as of February 22, 2021, travellers entering Canada at the land border will be required to take a COVID-19 molecular test on arrival as well as toward the end of their 14-day quarantine.

All travellers arriving to Canada by air, as of February 22, 2021, with some exceptions, will be required to take a COVID-19 molecular test when they arrive in Canada before exiting the airport, and another toward the end of their 14-day quarantine period. With limited exceptions, air travellers, will also be required to reserve, prior to departure to Canada, a 3-night stay in a government-authorized hotel. Travellers will be able to book their government-authorized stay starting February 18, 2021. These new measures are in addition to existing mandatory pre-boarding and health requirements for air travellers.

Finally, at the same time on February 22, 2021, all travellers, whether arriving by land or air will be required to submit their travel and contact information, including a suitable quarantine plan, electronically via ArriveCAN before crossing the border or boarding a flight.

The Government of Canada continues to strongly advise Canadians to cancel or postpone any non-essential travel, including vacation plans, outside Canada. Foreign nationals should likewise postpone or cancel travel plans to Canada. Now is not the time to travel.

“I want to thank Canadians who continue to make sacrifices to protect each other from COVID-19. We continue to detect variants of concerns, and this is why we are putting these additional measures in place. Now is not the time to travel, so please cancel any plans you might have." The Honourable Patty Hajdu Minister of Health

“With these additional COVID testing requirements and safety measures at the land border we are taking extra steps to help prevent the spread of COVID-19 and its variants. As we do for air travel, we are now also requiring travellers by land to provide information using ArriveCAN to facilitate processing and limit points of contacts between border services officers and travellers. We’ll always prioritize the health and safety of Canadians as we make decisions.” The Honourable Bill Blair Minister of Public Safety and Emergency Preparedness

“We’re moving forward with these critical measures to help prevent the spread of COVID-19 and the introduction of new variants of the virus into Canada. At the same time, we recognize the importance of the continued movement of goods and the ongoing delivery of essential services in Canada. Our government’s response to this pandemic includes necessary measures to protect the health and safety of Canadians while keeping our economy going.” The Honourable Omar Alghabra Minister of Transport

Quick facts

Canadians citizens, persons registered under the Indian Act and permanent residents arriving by land to Canada, who do not present a valid COVID-19 molecular test, will be allowed entry, but may be subject to a fine of up to $3,000 per day or face criminal prosecution. Travellers may also be required to go to a designated quarantine facility if they are symptomatic on arrival at the border, or do not have a suitable quarantine plan.

Foreign nationals who have obtained an exemption to enter Canada, will be refused entry, with limited exceptions, if they do not have a valid COVID-19 molecular test result. 

Failure to provide accurate information is an offence under the Quarantine Act . In addition, violating any quarantine or isolation instructions provided to travellers by a screening officer or quarantine officer when entering Canada is an offence under the Quarantine Act and could lead to serious penalties, including 6 months in prison and/or $750,000 in fines.

Exemptions continue to be in place to ensure that economic supply chains continue between Canada and the U.S. The Government of Canada is closely engaging the Biden Administration on our respective border measures and we continue to keep the lines of communication open.

Associated links

• Infographic for travellers arriving by air
• Infographic for travellers arriving by land
• Backgrounder - Additional testing and more stringent quarantine requirements for travel to Canada
• COVID-19: Travel, quarantine and borders
• COVID-19 measures, updates, and guidance issued by Transport Canada
• Group Exemption from Quarantine under 6(e) of the Order

Media Relations Public Health Agency of Canada 613-957-2983 [email protected]

Page details

• Share full article

Advertisement

Supported by

Frugal Traveler

To Protect Your Miles, Be Careful How You Book

American Airlines recently announced new restrictions on point allocation based on how you book a flight. What does that mean for loyalty members?

By Elaine Glusac

Elaine Glusac is the Frugal Traveler columnist, focusing on budget-friendly tips and journeys.

Earlier this month, American Airlines announced that beginning May 1, it will require travelers to book directly with the airline, partner airlines or “preferred travel agencies” in order to receive points in its loyalty program.

The unprecedented move confused many travelers eager to protect their mileage currency, prompting posts like this one on X: “@AmericanAir your news about earning miles/loyalty points is a bit concerning — we’re loyal to you no matter who we book through!”

In an email, a representative of the airline said that the approved list of travel agencies would not be published until April.

While there is much to be determined about the new policy, a battle for customers between the airline and third-party ticket sellers, which includes online travel agencies like Orbitz, has emerged. Here’s what travelers should know before booking their next flight.

What are the new points rules at American?

Currently, the biggest domestic carriers — including Delta Air Lines , United Airlines , Southwest Airlines and American — award points and miles to members of their loyalty programs on most tickets regardless of where they are sold.

American’s new rules state that in order to receive miles and points, travelers must book through its website, a Oneworld partner airline or approved travel agencies (with exceptions for those enrolled in its business program, which targets small companies, or with a corporate contract).

Also beginning May 1, fliers booking basic economy fares, the airline’s cheapest fares, may only earn points by booking through American’s website or its airline partners.

What’s behind the switch?

According to analysts, this is largely a behind-the-scenes fight over technology.

Travel agencies have long used distribution systems like Sabre and Amadeus to sell airline tickets. But many airlines are interested in using an emerging channel developed by the International Air Transport Association called New Distribution Capability . It offers airlines a more direct means of communicating with passengers, whom they can target with personalized fares or bundled offers not available in the traditional systems, providing opportunities to sell more services.

The “preferred” agencies that American said it will announce in April will be those making a substantial number of bookings on the new platform.

“American is dead set on being a more efficient airline and reducing its cost of sales, so they have issued this new edict and travel agents who choose not to follow along will find themselves on the losing end of the battle,” said Henry Harteveldt, a travel industry analyst and the founder of the Atmosphere Research Group.

Many travel agents object to the speed of adopting a technology they say still has bugs. In a recent letter to the 18,000 member agencies of the American Society of Travel Advisors , the president and chief executive of the trade organization Zane Kerby called it “an underdeveloped technology,” with “basic servicing” issues that include problems with cancellations, booking multiple people on the same itinerary and rebooking.

Mr. Kerby cited a heightened risk to most business travelers using external agencies to make their bookings. “It feels like American Airlines is disenfranchising or willing to disenfranchise its most profitable and lucrative segment, which is the frequent business traveler,” he said.

In American’s new requirement that basic economy fliers book directly with the airline to earn miles, Brian Sumers, who writes the Airline Observer newsletter, sees a play for greater loyalty from thrifty travelers at a time when many airlines have abandoned them. Delta , for instance, no longer awards points to its basic economy passengers. United restricts basic economy fliers to one personal item carried aboard when flying domestically.

American wants those basic economy passengers, Mr. Sumers said. “The end goal is to get people so excited about having AAdvantage points and using them all the time, because that’s where they’re making money.”

How should I book to ensure I’m awarded miles for American flights?

If you are accustomed to booking online with the airline directly, earning miles is not endangered.

If you use a travel agency, including online sites like Expedia or Orbitz, check the list of approved agencies when it is published in April.

But even for travelers who are accustomed to D.I.Y. bookings, the new American policy poses some threat to earning miles. If you use a travel agent to plan a more complicated trip — say, an African safari or a trek to Machu Picchu in Peru — make sure the agent is approved by American or be prepared to make the booking yourself to earn miles.

“American is counting on the fact that travelers engaged with AAdvantage will want to remain engaged, so that if their travel agent is not onboard, the customer will find a different travel agent or opt to book directly,” Mr. Harteveldt said.

Will other airlines follow suit?

Experts say commercial aviation is a copycat industry; if a policy is successful, others are likely to follow. But it may not happen quickly in this case.

“There are some very expensive tickets that go through using the older system,” Mr. Sumers said, describing other airlines as “taking a watch-and-wait approach” to see if any defections from former American customers boost their business.

“By no means has this play reached its conclusions,” Mr. Harteveldt said. “We are in the first part of the first act.”

Follow New York Times Travel on Instagram and sign up for our weekly Travel Dispatch newsletter to get expert tips on traveling smarter and inspiration for your next vacation. Dreaming up a future getaway or just armchair traveling? Check out our 52 Places to Go in 2024 .

Open Up Your World

Considering a trip, or just some armchair traveling here are some ideas..

52 Places:  Why do we travel? For food, culture, adventure, natural beauty? Our 2024 list has all those elements, and more .

Mumbai:  Spend 36 hours in this fast-changing Indian city  by exploring ancient caves, catching a concert in a former textile mill and feasting on mangoes.

Kyoto:  The Japanese city’s dry gardens offer spots for quiet contemplation  in an increasingly overtouristed destination.

Iceland:  The country markets itself as a destination to see the northern lights. But they can be elusive, as one writer recently found .

Texas:  Canoeing the Rio Grande near Big Bend National Park can be magical. But as the river dries, it’s getting harder to find where a boat will actually float .