- What is UHT? UHT is a federal tax that applies to vacant or underused housing in Canada. It aims to discourage foreign investors from leaving their properties empty and to increase the supply of affordable housing. The tax rate is 1% of the property value per year.
- Who needs to pay UHT? UHT mainly affects foreign national owners of housing in Canada. However, some Canadian owners may also be subject to UHT if they are partners, trustees, or corporations with foreign ownership. Owners need to file their UHT returns by April 30, 2024 for the 2022 calendar year.
- Nov 1, 2023 Update: The Canada Revenue Agency (CRA) has declared that individuals owning residential property in Canada, affected by the underused housing tax (UHT), now have until April 30, 2024, to submit their returns for the 2022 calendar year without incurring penalties or interest charges. Consequently, for the 2022 calendar year, the CRA will exempt late-filed UHT returns and late-paid UHT from penalties and interest, provided the return is filed, and the UHT is paid by April 30, 2024
- Nov 21, 2023 Update: The government has proposed to exempt Canadians, permanent residents and some Canadian corporations from filing requirements starting in 2023, but not for 2022. The CRA has reduced the failure to file on time penalty to $1,000 for individuals and $2,000 for corporations. Originally, the penalties were set at $5,000 for each affected individual and $10,000 for corporations.
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