Corporations, Trustees and Partners Exemptions for Speculation and Vacancy Tax
Many of the speculation and vacancy tax exemptions available to individuals are also available for residential property owned by eligible corporations, trustees or partners.
Note: Partnership means a business partnership.
To be eligible for a principal residence exemption, a corporation, trustee or partner must take account of its corporate interest holders, beneficial owners or partnership interest holders:
- Corporate interest holders are individuals who have significant ownership and/or control of the corporation
- Beneficial owners are individuals who have a direct or indirect beneficial interest in a residential property owned by a trust
- Partnership interest holders are individuals who have an interest in the partnership’s residential property as a partner or as a corporate interest holder of a corporation acting as a partner
If a property is the principal residence of a corporate interest holder, beneficial owner or partnership interest holder, then the corporation, trustee or partner may be eligible for the principal residence exemption.
Eligibility for an exemption depends on whether the corporate interest holders, beneficial owners or partnership interest holders all meet the requirements that individual owners would need to meet when claiming the principal residence exemption. They must all be:
- Canadian citizens or permanent residents of Canada
- Resident in B.C. for income tax purposes, and
- Not members of a satellite family
Corporations, trustees or partners may claim other exemptions in a similar manner. To be eligible they must still ensure that all of their corporate interest holders, beneficial owners or partnership interest holders meet the same requirements that individual owners are required to meet.
The speculation and vacancy tax has received Royal assent in the Legislature. This information is not a replacement for the law.