Let’s Talk about the Speculation & Vacancy Tax!
You would have received your declaration letter between mid-January to mid-February in the mail. This is a friendly reminder that your Speculation & Vacancy Tax Declarations are due March 31st, 2021. It’s easy to submit your declaration online HERE. Not familiar with the Speculation & Vacancy Tax Declarations? Read below for more information:
What is the Speculation & Vacancy Tax?
The Speculation & Vacancy Tax is an annual tax based on how owners use residential properties in major urban areas in B.C. Registered owners of residential property in a designated taxable region must complete a declaration each year to declare their residency status and how their property has been used.
Keep in mind that a separate declaration must be made for each owner, even if the other owner is your spouse or relative.
But don’t worry, over 99% of British Columbians are exempt from the Speculation & Vacancy Tax. As a rule, a British Columbian owner is exempt from the tax if the home is their principal residence.
There may be other exemptions for individuals and corporations are also available for circumstances such as major home renovations and life events such as divorce, hospitalization, or extended absence.
Note: If you do end up owing tax, it must be paid by July 2, 2021.
Who has to Declare?
Registered owners of residential property in a designated taxable region must complete a declaration each year to declare their residency status and how their property has been used. You have to declare each year because your circumstances may change during the year.
Vancouver Empty Homes Tax:
Also, keep in mind that the Speculation & Vacancy Tax is different from the Vancouver Empty Homes Tax. The rules for each tax and how they apply are not the same. If you own residential property in the City of Vancouver, you must declare separately for each tax and you may be exempt from one tax but have to pay the other.