{"id":5305,"date":"2023-03-28T13:21:09","date_gmt":"2023-03-28T20:21:09","guid":{"rendered":"https:\/\/newserver.ca.andersen.com\/?p=5305"},"modified":"2025-06-11T09:37:43","modified_gmt":"2025-06-11T16:37:43","slug":"underused-housing-tax-affects-canadians-too","status":"publish","type":"post","link":"https:\/\/previous.ca.andersen.com\/fr\/blog\/underused-housing-tax-affects-canadians-too\/","title":{"rendered":"Underused Housing Tax \u2013 Affects Canadians Too"},"content":{"rendered":"\n

Canada\u2019s new Federal Underused Housing Tax (\u201cUHT\u201d) is in effect for owners of Canadian residential properties as of December 31, 2022. Originally intended for non-Canadian owners, some Canadian citizens and permanent residents (\u201cCanadians\u201d) may be subject to this tax unless they timely file UHT tax returns.<\/strong><\/p>\n\n\n\n

Intended for Non-Canadians<\/em><\/p>\n\n\n\n

The law is aimed at non-Canadian citizens and non-Canadian permanent residents potentially subjecting them to a 1% tax on the assessed value of their properties. Exemptions exist in situations where properties have tenants, properties are newly acquired or under construction and for properties in certain rural areas where the owners use the property personally. Non-Canadian citizens and non-Canadian permanent residents are required to annual file a UHT form to claim their exemption.<\/p>\n\n\n\n

Impacts Canadians Too<\/em><\/p>\n\n\n\n

Canadians who own Canadian residential property are exempt from UHT tax, however unless they are \u201cexcluded owners\u201d under UHT law, they are required to annual file UHT returns to claim their exemption. For individual owners, the definition of excluded owners generally includes Canadian citizens and permanent residents that directly own Canadian residential property. However, where individuals own the property in their capacity as a trustee of a trust or partner of a partnership, they are not excluded owners but \u201caffected owners.\u201d Affected Owners are required to file an annual UHT tax return to report their ownership and claim their exemption to the tax.<\/em><\/strong><\/p>\n\n\n\n

Impacts Canadian Corporations as Well<\/em><\/p>\n\n\n\n

Many Canadians own shares in private Canadian corporations that own Canadian residential properties. These Canadian corporations are required to file the annual UHT tax return to claim applicable exemptions.<\/p>\n\n\n\n

Examples<\/em><\/p>\n\n\n\n

UHT tax returns are required in the following situations:<\/p>\n\n\n\n