TAX PAYABLE UNDER SUBSECTION 2 (2.1) OF THE ACT BY FOREIGN ENTITIES AND TAXABLE TRUSTEES

CONTENTS Definitions 1.1 Definitions 1.0.1 Spouse, timing of determination 1.1 Holidays Designated Land, Specified Regions and Alternate Rate of Tax 1.1.1 Designated land 1.2 Specified regions 1.3 Alternate tax rate Exemptions 2. Exemption, nominees 3. Exemption, protected persons 4. Exemption, conveyance to foreign national and spouse 4.1 Exemption, agreements entered into on or before March 29, 2022 4.2 Exemption, condominium parking or storage 4.3 Non-application of exemptions Rebates 5. Rebate for foreign nationals who become permanent residents of Canada 6. Rebate for international students 7. Rebate for foreign nationals working in Ontario 7.1 Phasing out of rebates for international students and foreign nationals working in Ontario 7.2 Non-application of rebates, conveyance to taxable trustee 7.3 Rebate for land purchased for industrial use 8. Written application 9. Interest on rebates 10. Rates of interest Definitions Definitions 1. In this Regulation, “business day” means a day from Monday to Friday, other than a holiday as described in section 1.1; (“jour ouvrable”) “nominee” means a foreign national who is nominated under the Ontario Immigrant Nominee Program; (“candidat désigné”) “protected person” means a foreign national on whom refugee protection is conferred under section 95 of the Immigration and Refugee Protection Act (Canada). (“personne protégée”) O. Reg. 182/17, s. 1; O. Reg. 224/18, s. 1. Spouse, timing of determination 1.0.1 For greater certainty, whether a person is a spouse of another person for the purposes of this Regulation in connection with a conveyance is to be determined in respect of the day on which the conveyance is registered. O. Reg. 144/24, s. 1. Holidays 1.1 (1) This section applies for the purposes of the definition of “business day” in section 1. O. Reg. 224/18, s. 2. (2) The following days are holidays: 1. New Year’s Day. 2. Family Day. 3. Good Friday. 4. Easter Monday. 5. Victoria Day. 6. Canada Day. 7. Civic Holiday. 8. Labour Day. 9. Thanksgiving Day. 10. Remembrance Day. 11. Christmas Day. 12. Boxing Day. 13. Any special holiday proclaimed by the Governor General or the Lieutenant Governor. O. Reg. 224/18, s. 2. (3) If New Year’s Day, Canada Day or Remembrance Day falls on a Saturday or a Sunday, the following Monday is a holiday. O. Reg. 224/18, s. 2. (4) If Christmas Day falls on a Saturday or a Sunday, the following Monday and Tuesday are holidays. O. Reg. 224/18, s. 2. (5) If Christmas Day falls on a Friday, the following Monday is a holiday. O. Reg. 224/18, s. 2. Designated Land, Specified Regions and Alternate Rate of Tax Designated land 1.1.1 On and after March 27, 2024, a unit or proposed unit under the Condominium Act, 1998 that is intended for use by a resident of the condominium complex for parking or storage purposes is prescribed as land for the purposes of clause (b) of the definition of “designated land” in subsection 1 (1) of the Act. O. Reg. 144/24, s. 2. Specified regions 1.2 All areas of land outside of the Greater Golden Horseshoe Region are prescribed as included in the specified region for the purposes of clause (b) of the definition of “specified region” in subsection 1 (1) of the Act. O. Reg. 240/22, s. 1. Alternate tax rate 1.3 (1) Subject to subsections (2) and (3), an alternate tax rate is prescribed for the purposes of subsection 2 (2.1) of the Act of, (a) 25 per cent in respect of conveyances of land tendered for registration after October 24, 2022; and (b) 20 per cent in respect of conveyances of land tendered for registration after March 29, 2022 but on or before October 24, 2022. O. Reg. 506/22, s. 1 (1). (2) The rate set out in clause 2 (2.1) (a) of the Act applies in respect of a conveyance of land tendered for registration after March 29, 2022 if, (a) the land is conveyed pursuant to an agreement of purchase and sale entered into on or before March 29, 2022; (b) any assignment of the agreement of purchase and sale to any other person was entered into on or before March 29, 2022; (c) the land is not conveyed to any foreign corporation other than, (i) a purchaser under the agreement of purchase and sale, or (ii) a corporation to which the agreement of purchase and sale was assigned; (d) the land is not conveyed to any foreign national or taxable trustee other than, (i) a purchaser under the agreement of purchase and sale, (ii) a person to whom the agreement of purchase and sale was assigned, or (iii) the spouse of an individual described in subclause (i) or (ii); and (e) the land is located within the Greater Golden Horseshoe Region. O. Reg. 240/22, s. 1. (3) The alternate rate of 20 per cent applies in respect of a conveyance of land tendered for registration after October 24, 2022 if, (a) the land is conveyed pursuant to an agreement of purchase and sale entered into after March 29, 2022 but on or before October 24, 2022; (b) any assignment of the agreement of purchase and sale to any other person was entered into on or before October 24, 2022; (c) the land is not conveyed to any foreign corporation other than, (i) a purchaser under the agreement of purchase and sale, or (ii) a corporation to which the agreement of purchase and sale was assigned; and (d) the land is not conveyed to any foreign national or taxable trustee other than, (i) a purchaser under the agreement of purchase and sale, (ii) a person to whom the agreement of purchase and sale was assigned, or (iii) the spouse of an individual described in subclause (i) or (ii). O. Reg. 506/22, s. 1 (2). Exemptions Exemption, nominees 2. (1) No tax is payable under subsection 2 (2.1) of the Act in respect of a conveyance of land if, (a) the land is conveyed to a nominee; (b) any other transferees named in the conveyance are individuals who are either Canadian citizens, permanent residents of Canada, nominees or protected persons; (c) each transferee certifies that within 60 days after the day the conveyance is tendered for registration, they will occupy the land as their principal residence; and (d) the nominee has applied to become a permanent resident of Canada or certifies that they will apply to become a permanent resident of Canada. O. Reg. 182/17, s. 2 (1); O. Reg. 144/24, s. 3 (1). (2) In the case of a conveyance of designated land that consists solely of land described in section 1.1.1, clause (1) (c) does not apply. Instead, each transferee must certify that within 60 days after the day the conveyance is tendered for registration, they will use the land in connection with their principal residence located in the same condominium complex as the land described in section 1.1.1. O. Reg. 144/24, s. 3 (2). Exemption, protected persons 3. (1) No tax is payable under subsection 2 (2.1) of the Act in respect of a conveyance of land if, (a) the land is conveyed to a protected person; (b) any other transferees named in the conveyance are individuals who are either Canadian citizens, permanent residents of Canada, nominees or protected persons; and (c) each transferee certifies that within 60 days after the day the conveyance is tendered for registration, they will occupy the land as their principal residence. O. Reg. 182/17, s. 3 (1); O. Reg. 144/24, s. 4 (1). (2) In the case of a conveyance of designated land that consists solely of land described in section 1.1.1, clause (1) (c) does not apply. Instead, each transferee must certify that within 60 days after the day the conveyance is tendered for registration, they will use the land in connection with their principal residence located in the same condominium complex as the land described in section 1.1.1. O. Reg. 144/24, s. 4 (2). Exemption, conveyance to foreign national and spouse 4. (1) No tax is payable under subsection 2 (2.1) of the Act in respect of a conveyance of land if, (a) the land is conveyed to a foreign national and the foreign national’s spouse; (b) at the time of the conveyance, the spouse is a Canadian citizen, a permanent resident of Canada, a nominee or a protected person; (c) any other transferees named in the conveyance are individuals who are either, (i) Canadian citizens, permanent residents of Canada, nominees or protected persons, or (ii) the spouse of an individual described in subclause (i); and (d) each transferee certifies that within 60 days after the day the conveyance is tendered for registration, they will occupy the land as their principal residence. O. Reg. 182/17, s. 4 (1); O. Reg. 144/24, s. 5 (1). (2) In the case of a conveyance of designated land that consists solely of land described in section 1.1.1, clause (1) (d) does not apply. Instead, each transferee must certify that within 60 days after the day the conveyance is tendered for registration, they will use the land in connection with their principal residence located in the same condominium complex as the land described in section 1.1.1. O. Reg. 144/24, s. 5 (2). Exemption, agreements entered into on or before March 29, 2022 4.1 No tax is payable under subsection 2 (2.1) of the Act in respect of a conveyance of land if, (a) the land is conveyed pursuant to an agreement of purchase and sale entered into on or before March 29, 2022; (b) any assignment of the agreement of purchase and sale to any other person was entered into on or before March 29, 2022; (c) the land is not conveyed to any foreign corporation other than, (i) a purchaser under the agreement of purchase and sale, or (ii) a corporation to which the agreement of purchase and sale was assigned; (d) the land is not conveyed to any foreign national or taxable trustee other than, (i) a purchaser under the agreement of purchase and sale, (ii) a person to whom the agreement of purchase and sale was assigned, or (iii) the spouse of an individual described in subclause (i) or (ii); and (e) the land is located outside of the Greater Golden Horseshoe Region. O. Reg. 240/22, s. 1. Exemption, condominium parking or storage 4.2 No tax is payable under subsection 2 (2.1) of the Act in respect of a conveyance of land consisting solely of the land described in section 1.1.1 if, (a) the land is conveyed pursuant to an agreement of purchase and sale entered into on or before March 26, 2024; (b) any assignment of the agreement of purchase and sale to any other person was entered into on or before March 26, 2024; (c) the land is not conveyed to any foreign corporation other than, (i) a purchaser under the agreement of purchase and sale, or (ii) a corporation to which the agreement of purchase and sale was assigned; and (d) the land is not conveyed to any foreign national or taxable trustee other than, (i) a purchaser under the agreement of purchase and sale, (ii) a person to whom the agreement of purchase and sale was assigned, or (iii) the spouse of an individual described in subclause (i) or (ii). O. Reg. 144/24, s. 6. Non-application of exemptions 4.3 No exemption from the requirement to pay tax under subsection 2 (2.1) of the Act is allowed under any of sections 2, 3 or 4 of this Regulation with respect to land that is conveyed to a taxable trustee. O. Reg. 144/24, s. 6. Rebates Rebate for foreign nationals who become permanent residents of Canada 5. (1) Subject to section 7.2, the Minister may rebate tax paid by a foreign national under subsection 2 (2.1) of the Act in respect of a conveyance of land if the Minister is satisfied that, (a) the foreign national is the only transferee named in the conveyance or, if two transferees are named, they are the foreign national and the foreign national’s spouse; (b) the foreign national became a permanent resident of Canada within four years after the day the conveyance was tendered for registration; and (c) on and after a date that is within 60 days after the day the conveyance was tendered for registration, and continuing until the date on which an application under subsection (2) is made, the land has been occupied by the transferee or transferees as their principal residence. O. Reg. 182/17, s. 5 (1); O. Reg. 144/24, s. 7 (1, 2). (1.1) In the case of a conveyance of designated land that consists solely of land described in section 1.1.1, clause (1) (c) does not apply. Instead, the Minister must be satisfied that the land has been used by the transferee or transferees in connection with their principal residence located in the same condominium complex as the land described in section 1.1.1 beginning within 60 days after the day the conveyance was tendered for registration and continuing until the date on which the application for a rebate under subsection (2) is made. O. Reg. 144/24, s. 7 (3). (2) An application for a rebate under this section shall be made before the 181st day after the foreign national or the foreign national’s spouse became a permanent resident of Canada, but no application shall be made later than four years and 180 days after the day the tax became payable. O. Reg. 182/17, s. 5 (2); O. Reg. 144/24, s. 7 (4). Rebate for international students 6. (1) Subject to sections 7.1 and 7.2, the Minister may rebate tax paid by a foreign national under subsection 2 (2.1) of the Act in respect of a conveyance of land if the Minister is satisfied that, (a) the foreign national has been enrolled full-time in an approved institution at a campus located in Ontario for a continuous period of at least two years that begins within 30 days after the date on which the conveyance was tendered for registration; (b) the foreign national is the only transferee named in the conveyance or, if two transferees are named, they are the foreign national and the foreign national’s spouse; and (c) on and after a date that is within 60 days after the day the conveyance was tendered for registration, and continuing until the date on which an application under subsection (2) is made, the land has been occupied by the transferee or transferees as their principal residence. O. Reg. 182/17, s. 6 (1); O. Reg. 240/22, s. 2 (1); O. Reg. 144/24, s. 8. (2) An application for a rebate under this section must be made on or before the earlier of, (a) the fourth anniversary of the day on which the tax became payable; and (b) March 31, 2025. O. Reg. 240/22, s. 2 (2). (3) In this section, “approved institution” means an institution that is approved under section 8 of Ontario Regulation 70/17 (Ontario Student Grants and Ontario Student Loans) made under the Ministry of Training, Colleges and Universities Act. O. Reg. 182/17, s. 6 (3). (4) An individual enrolled at an approved institution is considered to be enrolled full time for a year if, (a) in the case of an individual who does not have a disability, the individual is enrolled in at least 60 per cent of what the institution considers to be a full course load for the academic year; or (b) in the case of an individual with a disability, the individual is enrolled in at least 40 per cent of what the institution considers to be a full course load for the academic year. O. Reg. 182/17, s. 6 (4). Rebate for foreign nationals working in Ontario 7. (1) Subject to sections 7.1 and 7.2, the Minister may rebate tax paid by a foreign national under subsection 2 (2.1) of the Act in respect of a conveyance of land if the Minister is satisfied that, (a) the foreign national has been employed full-time in Ontario under a valid work permit for a continuous period of at least one year that begins within 30 days after the date on which the conveyance was tendered for registration; (b) the foreign national is the only transferee named in the conveyance or, if two transferees are named, they are the foreign national and the foreign national’s spouse; and (c) on and after a date that is within 60 days after the day the conveyance was tendered for registration, and continuing until the date on which an application under subsection (2) is made, the land has been occupied by the transferee or transferees as their principal residence. O. Reg. 182/17, s. 7 (1); O. Reg. 240/22, s. 3 (1); O. Reg. 144/24, s. 9. (2) An application for a rebate under this section must be made on or before the earlier of, (a) the fourth anniversary of the day on which the tax became payable; and (b) March 31, 2025. O. Reg. 240/22, s. 3 (2). (3) In this section, “full-time” means, in respect of an employment position, a position that requires, (a) no fewer than 30 hours of paid work per week over a 12 month period; and (b) no fewer than a total of 1,560 hours of paid work over that period. O. Reg. 182/17, s. 7 (3). Phasing out of rebates for international students and foreign nationals working in Ontario 7.1 No rebate of tax may be made under section 6 or 7 in respect of a conveyance of land that occurs after March 29, 2022 unless, (a) the land is conveyed pursuant to an agreement of purchase and sale entered into on or before March 29, 2022; (b) any assignment of the agreement of purchase and sale to any other person was entered into on or before March 29, 2022; and (c) the land is not conveyed to any foreign national other than, (i) a purchaser under the agreement of purchase and sale, (ii) an individual to whom the agreement of purchase and sale was assigned, or (iii) the spouse of an individual described in subclause (i) or (ii). O. Reg. 240/22, s. 4. Non-application of rebates, conveyance to taxable trustee 7.2 No rebate of tax may be made under section 5, 6 or 7 with respect to land that is conveyed to a taxable trustee. O. Reg. 144/24, s. 10. Rebate for land purchased for industrial use 7.3 (1) The Minister may rebate tax paid under subsection 2 (2.1) of the Act, including tax paid under subsection 3 (2) of the Act that is determined in accordance with subsection 2 (2.1) of the Act, on the tendering for registration of a conveyance of land to a foreign entity or a taxable trustee or on the disposition of a beneficial interest in land to a foreign entity or a taxable trustee if, (a) the conveyance of land is tendered for registration, or the disposition of the beneficial interest in land occurs, on or after November 6, 2025; (b) the land in question, or a portion of it, is, in respect of a period that begins during the four-year period following the registration of the conveyance of the land or the disposition of the beneficial interest in the land, reclassified from a property class other than one of the industrial property classes into one of the industrial property classes; (c) the reclassification mentioned in clause (b) occurs by no later than the sixth anniversary of the date of the registration of the conveyance of land or the disposition of the beneficial interest in land; (d) the application for the rebate has been made to the Minister on or before the sixth anniversary of the date on which the tax became payable; and (e) the land or interest in land remained owned by the foreign entity or taxable trustee until the date on which the application for the rebate was made to the Minister. O. Reg. 250/25, s. 1. (2) The rebate shall be equal to the amount of the tax paid under subsection 2 (2.1) of the Act unless some portion of the land is not classified in one of the industrial property classes, in which case the amount of the rebate shall be calculated using the formula, A × B in which, “A” represents the amount of the tax paid under subsection 2 (2.1) of the Act, and “B” represents the percentage share of the value of the land attributable to the portion of the land classified in any of the industrial property classes, as determined by the assessment corporation under subsection 14 (5) of the Assessment Act in the most recent assessment of the land as of the date on which the application for the rebate was made to the Minister. O. Reg. 250/25, s. 1. (3) In this section, “industrial property classes” means the following property classes: 1. The industrial property class prescribed under the Assessment Act. 2. The aggregate extraction property class prescribed under the Assessment Act. 3. An optional property class under the Assessment Act that the council of a municipality has opted to have apply within the municipality and that consists of land that, if the municipality had not opted to have the optional property class apply within the municipality, would be in the industrial property class. O. Reg. 250/25, s. 1. Written application 8. An application for a rebate under this Regulation shall be made in writing and shall set out the information the Minister requires to determine whether the applicant is eligible for the rebate. Interest on rebates 9. (1) If the Minister makes a rebate of tax under section 5, 6, 7 or 7.3, including as a result of an objection made under section 13 of the Act or an appeal under section 14 of the Act, interest shall be paid or applied on the amount of the rebate calculated at the rate determined under section 10 and compounded daily from the 40th business day following the date the application for the rebate was made to the date the rebate is paid or applied by the Minister against other liabilities of the person entitled to the rebate. O. Reg. 224/18, s. 3; O. Reg. 250/25, s. 2. (2) No interest is payable on an amount that is rebated to a person under section 5, 6, 7 or 7.3 with respect to the period from the date the person paid the amount until the 40th business day following the date the application for the rebate was made. O. Reg. 224/18, s. 3; O. Reg. 250/25, s. 2. (3) Interest shall not be paid or applied under this Regulation with respect to a rebate if the amount of the interest would be less than $1. O. Reg. 224/18, s. 3. Rates of interest 10. (1) In this section, “adjustment date” means January 1, April 1, July 1 or October 1; (“date de rajustement”) “average prime rate”, on a particular date, means the mean, rounded to the nearest whole percentage point, of the annual rates of interest announced by each of the Royal Bank of Canada, The Bank of Nova Scotia, the Canadian Imperial Bank of Commerce, the Bank of Montreal and The Toronto-Dominion Bank to be its prime or reference rate of interest in effect on that date for determining interest rates on Canadian dollar commercial loans by that bank in Canada. (“taux préférentiel moyen”) O. Reg. 224/18, s. 3. (2) For the purposes of section 9, the rates of interest shall be determined in accordance with the following rules: 1. A base rate of interest shall be determined for January 1, 2017 and for each adjustment date after January 1, 2017 and shall be equal to the average prime rate on, i. October 15 of the previous year, if the adjustment date is January 1, ii. January 15 of the same year, if the adjustment date is April 1, iii. April 15 of the same year, if the adjustment date is July 1, and iv. July 15 of the same year, if the adjustment date is October 1. 2. The base rate of interest in effect on a particular date shall be, i. the base rate for the particular date, if the particular date is an adjustment date, and ii. the base rate for the last adjustment date before the particular date, otherwise. 3. The rate of interest to be paid or allowed by the Minister to a person under section 9, in respect of a particular day after January 1, 2017, shall be an annual interest rate that is three percentage points lower than the base rate of interest in effect for that day. O. Reg. 224/18, s. 3.