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.
Astheleadvoiceandpodiumofrecordforthemostpromisingstartupsandhighestpotential,scalingtechcompanies,TechAllianceremainscommittedtoadvocatingforbettergrowthconditionsforCanadianfoundersandearly-stageinvestors.Whileourworkisnotover,aftermonthsofadvisingMembersofParliamentacrossSouthwesternOntario,andsignificantadvocacyinOttawawiththeFederalGovernment,thisisgoodnewsforrisk-takingentrepreneurswhoarecriticaltobuildingandmaintainingahealthyCanadianecosystem.