OTTAWA,
ON, May 14, 2024 /CNW/ - From students to
families to seniors to newcomers, Canadians are finding it
difficult to find the types of rental homes they need at prices
they can afford. To help ensure more rental housing is available
for Canadians, the Government of Canada is providing a 100% rebate on the Goods
and Services Tax (GST), or the federal portion of the Harmonized
Sales Tax (HST), on new purpose-built rental housing (PBRH). This
housing includes apartment buildings, student housing and seniors'
residences. Applications for the PBRH rebate can be made online
starting May 13, 2024.
To qualify, residential units need to meet the requirements for
the current GST/HST new residential rental property rebate and must
be in a multi-unit residential complex with at least:
- 4 private apartment units (each containing kitchen, bathroom
and living area) or at least 10 private rooms or suites, and
- 90% of residential units are held for long-term rental
Unlike the GST/HST new residential rental property rebate, the
PBRH rebate does not have a $450,000
fair market value limitation per unit.
This rebate is available for projects where construction began
after September 13, 2023, but before
2031, and will be substantially completed before 2036. For the
purpose of this rebate, construction is generally considered to
have begun when excavation for the project starts.
Construction to convert existing non-residential real estate,
such as an office building, into a residential complex will be
eligible for the PBRH rebate, if all conditions are met. Since
the goal is to increase the housing supply, the rebate will not
apply to the substantial renovation of an existing residential
complex.
Provincial rebate:
The governments of Ontario,
Nova Scotia and Newfoundland and Labrador have announced that they will mirror
the federal PBRH rebate and provide a 100% rebate of the provincial
portion of HST in those provinces. The Government of Prince Edward Island announced that it too
would generally mirror the federal PBRH rebate and provide a 100%
rebate of the provincial component of HST, subject to a maximum
rebate per unit and a reduced rebate rate for projects that reach
completion after 2028.
How to apply:
- GST/HST registrants can file a PBRH rebate online using My
Business Account by selecting the existing GST/HST New Residential
Rental Property Rebate Application (GST524).
- GST/HST non- registrants will be able to file a PBRH rebate
online by selecting the existing GST524 in My Account at a later
date. In the interim, please contact us at 1-800-959-5525 for
guidelines on how to apply.
To learn more about the purpose-built rental housing rebate, go
to:
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/purpose-built-rental-housing.html
Contacts
Media Relations
Canada Revenue Agency
613-948-8366
cra-arc.media@cra-arc.gc.ca
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SOURCE Canada Revenue Agency