Nova Scotia hits monetary establishments with 50% capital tax hike underneath Invoice 198

Then there’s the tax alignment. Clause 65 amends the provincial Earnings Tax Act to align with amendments to the federal Earnings Tax Act respecting the non-public overseas tax deduction. Clause 66 permits the company overseas tax deduction to replace routinely with any modifications to the relevant company tax fee. For advisors managing cash throughout borders, consistency between provincial and federal tax guidelines issues — and these clauses tighten that alignment. 

Clause 67 extends the capital funding tax credit score sundown from December 31, 2029, to December 31, 2035, and permits the definition of “authorities help” to be outlined within the laws. That’s six extra years of runway for companies investing capital in Nova Scotia, which can issue into conversations advisors are having with purchasers about the place to deploy cash in Atlantic Canada. 

On the regulatory aspect, Clauses 129 to 135 amend the Securities Act to permit for the designation and regulation of dispute decision companies and empower these companies to resolve disputes. In plain phrases, Nova Scotia now has a proper path for dealing with disagreements between buyers and the corporations that serve them. Funding professionals working within the province will wish to perceive how this framework takes form because it rolls out. 

Tucked additional into the invoice, Clause 109 amends the Public Service Superannuation Act, stretching the assessment cycle for the general public service pension plan from each 5 years to each seven, with the following assessment set for 2029. It’s a slender provision, however institutional buyers and pension consultants advising public sector plans within the province ought to take observe. 

The remainder of the invoice covers floor that falls outdoors the wealth and funding lane — a brand new levy on electrical and hybrid automobiles efficient October 1, 2026, modifications to vaping product taxation, and updates to insurance coverage, meat inspection, and pure sources statutes, amongst others.