The legislation for the Underused Housing Tax (UHT) was enacted by the Federal Government on June 9, 2022, effective on January 1, 2022. The UHT is a 1% tax on the ownership of vacant or underused housing located in Canada.
To avoid penalties, affected owners must now file their 2022 Underused Housing Tax Return and Election Form – UHT-2900 (“Form UHT-2900”) by October 31, 2023.
There are significant penalties if you fail to file Form UHT-2900 by the required date.
Affected owners who are individuals are subject to a minimum penalty of $5,000 per return. Affected owners that are corporations are subject to a minimum penalty of $10,000 per return.
An affected owner is an owner of a residential property that is:
- An individual who is not a Canadian citizen or permanent resident of Canada and owns residential property in Canada in any capacity.
- Individuals who are Canadian citizens or permanent residents of Canada who own residential property as a trustee of a trust or as a partner of a partnership.
- Corporations that own residential property in Canada but are not incorporated in Canada.
- Corporations that are incorporated in Canada or a province that own residential property in any capacity.
- Corporations that are incorporated in Canada or a province without share capital that are owners of residential property in any capacity.
For more information and to determine if you are an affected owner, please also see the information on the Canada Revenue Agency’s website at:
https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax.html
In addition, Form UHT-2900 can be found here:
https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/uht-2900.html
For your convenience, our UHT Checklist can be used in order to assist you in determining if you are required to file the UHT return.
If you have any questions about the UHT or if you would like us to prepare the filing(s) on your behalf, please contact us as soon as possible.
