DFK Tax Digest – 2026 Issue Two

DFK Tax Digest – 2026 Issue Two

• Paying a Non-Resident to Provide Services in Canada? Beware of Regulation 105 – Under Regulation 105 of the Income Tax Act (Canada), every person (including residents and non-residents of Canada, who are either individuals, corporations, or trusts) have new requirements.
• Disability Tax Credit (DTC) summary from The Spring Economic Update 2026 – The Disability Tax Credit (DTC) is available to an individual who is suffering from a severe and prolonged impairment in one category or a significant impairment in two or more categories of basic activities that are necessary for daily living.
• AMT and the New Reality for Trust Taxation – The updated Alternative Minimum Tax (AMT) rules significantly increase the likelihood that trusts will pay extra tax. The AMT rate has risen to 20.5%, and the rules now apply more broadly. Most trusts no longer qualify for the basic AMT exemption, which puts them at a disadvantage compared to individuals. As a result, even trusts with moderate income or gains may now face AMT.