The Underused Housing Tax (“UHT”) is an annual tax of 1 % on the ownership of vacant or underused housing. The UHT is payable by non-resident non-Canadian owners of vacant or underused housing in Canada.
Most Canadian owners of residential property are excluded owners and, therefore, do not have any obligations under the UHT. However, if you do not fall within the definition of an “excluded owner”, then you must file an UHT return for the calendar year ending December 31, 2022.
The due date for filing is April 30 of the following year, but because April 30th falls on a Sunday this year, the due date is May 1, 2023. Even if your ownership of the property qualifies for an exemption and no tax is owing, you still must file a return. There are substantial penalties for not filing by the due date. For individuals the penalty is a minimum of $5,000.00 and for corporations the minimum penalty is $10,000.00.
You can download the UHT return and election form at the link below.
Click here to access FORM UHT-2900
For more information about the Underused Housing Tax click here