The federal government delays the implementation of the proposed capital gains inclusion rate increase to January 1, 2026, from the originally planned June 25, 2024, as announced today by Finance Minister Dominic LeBlanc.
The original proposal caused uncertainty to Canadian founders. Today’s announcement, presents an opportunity for tech entrepreneurs and early-stage investors to reevaluate exit strategies, optimize tax efficiency, and leverage available exemptions. It also means founders have additional runway to build value before facing higher tax liabilities.
As the lead voice and podium of record for the most promising startups and highest potential, scaling tech companies, TechAlliance remains committed to advocating for better growth conditions for Canadian founders and early-stage investors. While our work is not over, after months of advising Members of Parliament across Southwestern Ontario, and significant advocacy in Ottawa with the Federal Government, this is good news for risk-taking entrepreneurs who are critical to building and maintaining a healthy Canadian ecosystem.