As February approaches, significant changes to laws and regulations in Ontario, as well as federal updates, are set to impact businesses and individuals across Canada. From tax deadlines to business registry updates, these changes could affect your daily life and financial plans. Here’s a detailed breakdown of what’s coming next month.
Table of Contents
1. End of the Temporary GST/HST Tax Break
If you’ve enjoyed a tax-free experience on specific items at grocery stores or restaurants recently, that’s about to change.
What’s Changing?
The temporary Goods and Services Tax/Harmonized Sales Tax (GST/HST) break, introduced in December 2024, will officially end on February 15, 2025. This tax relief was designed to ease costs on everyday necessities and holiday items, including:
- Children’s clothing.
- Most food and beverages.
- Toys and holiday decorations.
- Restaurant meals and takeout orders.
The tax break went into effect on December 15, 2024, but after February 15, GST/HST will once again apply to these items. This return to the standard tax structure may slightly increase the cost of your daily purchases.
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2. Changes to the Ontario Business Registry (OBR) Filing Process
If you’re a business owner in Ontario, take note of updates to the Ontario Business Registry (OBR) filing process that will come into effect on February 1, 2025.
What’s New?
- Mandatory Company Key: Businesses incorporated before October 19, 2021, will now need to use a unique 9-digit company key to conduct transactions on the OBR.
- Who’s Affected?
- Businesses registered before October 19, 2021 must now obtain and use a company key.
- Businesses registered on or after October 19, 2021, are unaffected as they already use this system.
Why It Matters?
The company key is essential for:
- Linking your business to a ServiceOntario account.
- Renewing business name registrations.
- Filing annual returns for corporations.
- Updating company information.
This streamlined process will make it easier for businesses to manage their filings, but if you fall into the affected category, ensure you obtain your company key to avoid disruptions.
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3. Extended Deadline for Charitable Donations
Good news for those supporting Canadian charities: the deadline to make charitable donations eligible for tax credits in the 2024 tax year has been extended.
What’s Changing?
- The federal government has amended the Income Tax Act, allowing donations made until February 28, 2025, to qualify for tax support in the 2024 tax year.
- This extension accommodates the delays caused by the four-week Canada Post mail stoppage that affected many charitable organizations.
Why It Matters?
Charities rely heavily on year-end donations to fund their vital services. This extension gives Canadians additional time to support causes they care about while benefiting from federal tax assistance.
- Federal tax assistance for charitable donations in 2024 is estimated to reach nearly $5 billion, highlighting the importance of community contributions.
What You Need to Do
For Consumers:
- Plan for increased costs on items that were temporarily exempt from GST/HST starting February 15, 2025.
For Business Owners:
- If your business was incorporated before October 19, 2021, obtain your company key to ensure smooth filing processes in the Ontario Business Registry.
For Donors:
- Take advantage of the extended deadline for charitable donations to maximize your tax credits while supporting essential causes.
Final Thoughts
These updates reflect efforts by the federal and provincial governments to streamline processes and address challenges while transitioning back to standard regulations. Whether you’re shopping, managing a business, or supporting charities, staying informed about these changes can help you plan ahead.
Stay prepared, and make February 2025 a smooth transition!
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