On November 4, 2025, the Minister of Finance and National Revenue, the Honourable François- Philippe Champagne, presented Budget 2025: Canada Strong.
In this budget, the government is making further strategic investments in tax incentives that promote capital investment and long-term economic growth, such as the immediate expensing for manufacturing and processing buildings.
In order to take new priorities into consideration, certain measures are being cancelled, such as:
> The Canadian Entrepreneurs’ Incentive;
> The increase in the capital gains inclusion rates;
> The Underused Housing Tax (UHT);
> The Luxury Tax on Aircraft and Vessels.
Moreover, the government proposes to implement modifications to the existing transfer pricing rules to better align the domestic rules with the international consensus.
Ultimately, the government has committed to implementing previously announced tax measures, such as:
> The increase in the Lifetime Capital Gains Exemption to apply to up to $1.25 million of eligible capital gains announced in Budget 2024;
> The extension of the Accelerated Investment Incentive and Immediate Expensing Measures;
> The Scientific Research and Experimental Development Tax Incentive Program;
> The excessive interest and financing expenses limitation (EIFEL);
> Substantive CCPCs.
Here are the highlights of the 2025 budget
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