Under BC's Additional Property Transfer Tax (commonly called the foreign buyers tax), what is the surcharge rate applied to residential property purchases by foreign nationals in specified areas?
Correct Answer
B) 20%
Property Transfer Tax Act s. 2.02 imposes the additional tax on foreign entities and taxable trustees acquiring residential property in a specified area, and Property Transfer Tax Regulation s. 17.02 sets the rate at 20% of the taxable amount. The specified areas are Metro Vancouver and, by regulation, the Capital, Central Okanagan, Fraser Valley and Nanaimo regional districts.
Why This Is the Correct Answer
This answer is correct. Property Transfer Tax Regulation s. 17.02 states that, for the purposes of s. 2.02(4) of the Act, the rate of tax is 20%.
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