Corporations, trustees and business partners exemptions for the 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.

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:

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.

If one or more beneficial owners or corporate interest holders do not meet the exemption requirements for individuals, then no owners on title will be exempt from the speculation and vacancy tax. 

Example: An owner is a trustee holding a property in trust for two beneficial owners. One of the beneficial owners is not a Canadian citizen or permanent resident, and does not file income taxes in Canada. Because this beneficial owner is ineligible for certain exemptions for the speculation and vacancy tax, the trustee cannot claim those exemptions, even if the other beneficial owner is eligible as an individual. If no other exemptions apply, the trustee is liable for the tax.  

Completing the declaration

To complete a declaration for a property that is owned by a corporation, trust or partnership, you will need:

  • The letter ID and declaration code found on the declaration letter
  • The business number, corporation number and date of incorporation or the trust account number
  • The names, birthdates and Social Insurance Numbers for all corporate interest holders or beneficial owners

You may also need to confirm you are authorized to speak on behalf of the corporation, trust or partnership. 

Note: The Business Number (BN) is a 9-digit number the Canada Revenue Agency assigns to businesses and other organizations for tax related purposes. 

This information is provided for your convenience and guidance and is not a replacement for the legislation