Non-Resident Speculation Tax Collected

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On April 21, 2017, the Province introduced a 15 per cent tax on the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe Region (GGH) by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) and taxable trustees. The Non-Resident Speculation Tax (NRST) applies in addition to the general land transfer tax in Ontario.

Specifically, the NRST applies on the transfer of land which contains at least one and not more than six single family residences.  Examples of land containing one single family residence include land containing a detached house, a semi-detached house, a townhouse or a condominium unit.

This report is based on the NRST collected on applicable transactions. The table in this report is for payments made to the Ministry of Finance between November 18, 2017 and February 16, 2018, and includes a breakdown of the NRST collected based on Land Registry Offices (LROs) in the GGH.

Note: The analysis from the previously released Provincial data (in relation to foreign transactions and activity) is based on the Additional Information Collection, and cannot be used to derive the NRST data in this analysis, as some foreign transactions may have been grandparented or exempt from the NRST. Therefore the amount of NRST collected should not be used to correlate or estimate foreign activity in the GGH. Refer to Appendix B for the differences between the NRST and the Additional Information Collection.

For more information on the NRST, refer to the Non-Resident Speculation Tax webpage bulletin.

Contents

Non-Resident Speculation Tax Collected– GGH Region

November 18, 2017 – February 16, 2018

Note: The figures in this table reflect the total NRST paid to the Ministry. Therefore, these figures may include amounts that are currently subject to an application for a rebate or refund, or may (in the future) be subject to an application for a rebate or refund.

Land Registry Offices (LRO)1
(LRO boundaries generally do not coincide with municipal boundaries)
NRST Collected
($ millions)
Total Number of NRST Payments
GGH Total 40.8 313
Durham 0.6 7
Halton 2.9 19
Niagara South & North 0.5 9
Peel 2.8 28
Toronto 18.9 144
Waterloo 0.5 7
Wentworth 0.8 10
York 13.1 78
Other GGH Regions2 0.7 11
Numbers may not add due to rounding.

Endnotes

[1] Because some LRO boundaries do not coincide with municipal boundaries, the data may not fully represent what is covered in the GGH and may include areas outside of the GGH.  Any discrepancy is expected to be insignificant.

[2] Includes Brant, Dufferin, Haldimand, Northumberland, Peterborough, Simcoe, Wellington and Victoria.

Glossary

Term Definition
Additional Information Collection
(Prescribed Information for the Purposes of Section 5.0.1)
On April 24, 2017 the Province began collecting additional information to better understand trends in the housing market through the land transfer tax (LTT) system. This additional data will be used for the administration and enforcement of the Land Transfer Tax Act, and to support evidence-based policy development with respect to Ontario's real estate market.

All persons who purchase or acquire land in Ontario that contains at least one and not more than six single family residences, or agricultural land, are required to provide this additional information.

For more information, refer to the Prescribed Information for the Purposes of Section 5.0.1.
Approved institution Means an institution that is approved under section 8 of Ontario Regulation 70/17 (Ontario Student Grants and Ontario Student Loans) made under the Ministry of Training, Colleges and Universities Act.
Foreign corporation Means a corporation that is one of the following:
  1. A corporation that is not incorporated in Canada.
  2. A corporation, the shares of which are not listed on a stock exchange in Canada, that is incorporated in Canada and is controlled, directly or indirectly in any manner whatever, within the meaning of section 256 of the Income Tax Act (Canada), by one or more of the following:
    1. a foreign national
    2. a corporation that is not incorporated in Canada
    3. a corporation that would, if each share of the corporation's capital stock that is owned by a foreign national or by a corporation described in paragraph 1 were owned by a particular person, be controlled, directly or indirectly in any manner whatsoever, within the meaning of section 256 of the Income Tax Act (Canada), by the particular person.
Foreign entity Means a foreign corporation or a foreign national.
Foreign national As defined in the Immigration and Refugee Protection Act (Canada), is an individual who is not a Canadian citizen or permanent resident of Canada and includes a stateless person.
Full-time For the purposes of the “international student” NRST rebate, means enrolled in at least 60 per cent (if the individual does not have a disability) or 40 per cent (if the individual has a disability) of what the approved institution considers to be a full course load for the academic year.
For the purposes of the “working in Ontario” NRST rebate, means in respect of an employment position, a position that requires,
  1. no fewer than 30 hours of paid work per week over a 12 month period; and
  2. no fewer than a total of 1,560 hours of paid work over that period.
Greater Golden Horseshoe Region (GGH) Refers to the area of land comprised of the geographic areas of the following municipalities:
  • City of Barrie, County of Brant, City of Brantford, County of Dufferin, Regional Municipality of Durham, City of Guelph, Haldimand County, Regional Municipality of Halton, City of Hamilton, City of Kawartha Lakes, Regional Municipality of Niagara, County of Northumberland, City of Orillia, Regional Municipality of Peel, City of Peterborough, County of Peterborough, County of Simcoe, City of Toronto, Regional Municipality of Waterloo, County of Wellington, and Regional Municipality of York.
Land Registration Office (LRO) LROs are managed by the Ministry of Government and Consumer Services (MGCS) which allows persons to register and search official private property records using Ontario’s land registration system.
Land Transfer Tax (LTT) The LTT is a broad-based tax imposed on persons acquiring land, or a beneficial interest in land, in Ontario with few exceptions.  LTT is payable to the Province when the transfer is registered under the Land Titles Act or the Registry Act, as applicable.

If the acquisition in an interest in land is not registered, LTT is payable directly to the Province in respect of the unregistered disposition of a beneficial interest in land, within 30 days after the transaction closing date.
Nominee Means a foreign national who is nominated under the Ontario Immigrant Nominee Program.
Non-Resident Speculation Tax (NRST) The NRST is a 15 per cent tax on the purchase or acquisition of an interest in residential property located in the GGH by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) and taxable trustees.

The NRST applies in addition to the general LTT in Ontario, and is effective as of April 21, 2017.
For more information, refer to the Non-Resident Speculation Tax.
Permanent resident of Canada Means a person who has acquired permanent resident status and has not subsequently lost that status under section 46 of the Immigration and Refugee Protection Act (Canada).
Protected person Means a foreign national on whom refugee protection is conferred under section 95 of the Immigration and Refugee Protection Act (Canada).
Single family residence Means a unit or proposed unit under the Condominium Act, 1998 or a structure or part of a structure that is designed for occupation as the residence of a family, including dependents or domestic employees of a member of the family, whether or not rent is paid to occupy any part of it and whether or not the land on which it is situated is zoned for residential use and,
  1. includes such a residence that is to be constructed as part of the arrangement relating to a conveyance, and
  2. does not include such a residence that is constructed or is to be constructed on agricultural land that is eligible to be classified in the farm property class prescribed under the Assessment Act.
For example: a detached and semi-detached house, duplex, freehold townhouse, condominium townhouse, condominium apartment, and cottage.
Taxable trustee Means a trustee of:
  • a trust with at least one trustee that is a foreign entity, or
  • a trust with no foreign entity trustees if a beneficiary of the trust is a foreign entity.
Taxable trustee does not include a trustee acting for the following types of trusts:
  1. A mutual fund trust within the meaning of subsection 132 (6) of the Income Tax Act (Canada).
  2. A real estate investment trust as defined in subsection 122.1 (1) of the Income Tax Act (Canada).
  3. A SIFT trust as defined in subsection 122.1 (1) of the Income Tax Act (Canada).
Teranet Inc. A private corporation that is the exclusive provider of Ontario’s online property search and electronic land registration service.
Teranet Express Teranet Express is a self-serve channel that allows customers to access the Ministry of Government and Consumer Services (MGCS) Land Registration Database and the Ministry of the Attorney General (MAG) Writs Database.

This platform must be used to electronically access and complete the additional information collection form.
Value of the consideration This term can generally be considered as the purchase price of the land (found on the agreement of purchase and sale). The “value of the consideration” is declared in the land transfer tax statements for electronic land registrations, or in the land transfer tax Affidavit which is required to be filed with the Land Registrar.

However, the definition of the “value of the consideration” under the Land Transfer Tax Act is broad, and is not always limited to the purchase price stated in an agreement of purchase and sale.  For example, the assumption of any liabilities (e.g. a mortgage), or outstanding encumbrances on the land (e.g. lien on the property) may also be included in the “value of the consideration”.

Further Information

https://www.fin.gov.on.ca/en/bulletins/nrst

Contact Information

Name: Scott Blodgett
Email: Scott.Blodgett@ontario.ca
Organization: Ministry of Finance
Sub-Organization: Communications Services Branch

Appendix A: Ontario – Land Registry Offices

Land Gegistry Offices

Appendix B: NRST and Additional Information Collection – Comparison

  NRST Additional Information Collection
Effective date April 21, 2017 April 24, 2017
Grandparenting NRST does not apply to binding agreements of purchase and sale signed on or before April 20, 2017 and not assigned to another person after April 20, 2017. N/A 
Geographic Area Greater Golden Horseshoe Region (GGH) Ontario
Type of Property Land that contains:
  • at least one and not more than six single family residences.
Land that contains:
  • at least one and not more than six single family residences, or
  • agricultural land.
Applicable Transferees (e.g. Purchasers) The data will only show those who were subject to the tax (foreign entities, and taxable trustees);
  • Foreign entities:
    • Foreign nationals, or
    • Foreign corporations
  • Taxable trustees, means a trustee of:
    • a trust with at least one trustee that is a foreign entity, or
    • a trust with no foreign entity trustees if a beneficiary of the trust is a foreign entity
All persons who purchase or acquire the applicable land (see above) in Ontario.

This includes the following:
  • Canadian citizens and permanent residents of Canada;
  • Canadian corporations;
  • Foreign nationals
    • Persons nominated under the Ontario Immigrant Nominee Program;
    • Protected persons (refugees);
    • Spouses of Canadian citizens, permanent residents of Canada, nominees or protected persons;
  • Foreign corporations; and
  • Trustees, nominees, agents, or similar arrangements.
Transferees Excluded or Exempt1
  • Trustee acting for the following types of trusts:
    • Mutual fund trust
    • Real Estate Investment Trust (REIT)
    • Specified Investment Flow-Through (SIFT) trust
  • Nominee:
    • A foreign national who is nominated under the Ontario Immigrant Nominee Program
  • Protected persons (refugee):
  • Spouses:
    • A foreign national who jointly purchases residential property with a spouse, who is a Canadian citizen, permanent resident of Canada, nominee or protected person
  • Trustee acting for the following types of trusts:
    • Mutual fund trust
    • Real Estate Investment Trust (REIT)
    • Specified Investment Flow-Through (SIFT) trust

[1] In order to be eligible for an exemption from the NRST, the purchaser must meet all requirements (e.g. certification to occupy the land as a principal residence), and the land must be held exclusively by the transferee and their spouse (and potentially other eligible persons).

Note: For exclusions relating to trustees of mutual fund trusts, REITs, and SIFT trusts, the trustee must exclusively hold title (or must hold title with similar trustees or other eligible persons).

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