The Canada Revenue Agency has officially announced its administration of changes to the capital gains inclusion rate as outlined in the Notice of Ways and Means Motion (NWMM) tabled in September 2024. A banner highlighting this update has been added to relevant CRA web pages.
While the proposed changes are still subject to parliamentary approval, the CRA, in line with standard practice, is administering the new capital gains inclusion rate effective June 25, 2024. This means employers must report the reduced deduction even if the previous 50% deduction was applied at source.
Reminder: Summary of stock options reporting on the T4 slip
| January 1 to June 24, 2024 | June 25 to December 31, 2024, and beyond | |
| Taxable Benefit | Box 14 and Code 38 | Box 14 and Code 90 |
| Stock Deduction (non-CCPC) |
Code 39 (50% of Code 38) |
Code 91 (33.33% of Code 90) |
| Stock Deduction (CCPC) | Code 41 (50% of Code 38) |
Code 92 (33.33% of Code 90) |