74/88

O.C. 364/88

March 3, 1988

March 20, 1987

Property Transfer Tax Act

Property Transfer Tax Regulation

[Last amended May 22, 2026 by B.C. Reg. 86/2026]

74_88_pit

Interpretation

In this regulation:

Act means the Property Transfer Tax Act ;

Crown grant means an instrument in writing conveying Crown land in fee simple;

Crown lease agreement means an instrument in writing disposing of a leasehold estate in Crown land;

minister means the Minister of Finance;

return means an original return provided by the minister.

General

Filing of return

Except as provided in this regulation, a return shall be filed with the registrar of the land title office at which the application for registration of a taxable transaction is made.

Crown grant or Crown lease agreement

In the case of a transfer by a Crown grant or Crown lease agreement that is to be submitted directly by the Ministry of Agriculture and Lands to the land title office for registration on behalf of a transferee, the transferee must, on demand made by the administrator, remit tax and file a return with the administrator.

[en. B.C. Reg. 415/92.]

Municipal tax sales

In the case of a transfer of the fee simple interest in land by notice under

section 663 [registration of tax sale purchaser as owner] of the Local Government Act , the transferee shall, on demand made by the administrator after being notified by the municipality under the Local Government Act that a notice under

section 663 of that Act has been forwarded to the registrar of land titles, remit tax to and file a return with the administrator.

[am. B.C. Reg. 117/2018, s. 19.]

Refunds

Repealed. [B.C. Reg. 91/2013, Sch., s. 8 (a).]

Repealed. [B.C. Reg. 122/2010, s. (a).]

Where tax is refunded to a person under

section 23 (2) or (3) of the Act, the administrator may refund out of the consolidated revenue fund to that person the fees paid under the Land Title Act , except fees established by the Board of Directors under that Act, in respect of the transfer for which the refund of tax is made, less all cancellation fees.

If a person

has paid tax under the Act in respect of a taxable transaction, and

has also paid tax under the Provincial Sales Tax Act in respect of a portion of the fair market value of the interest transferred under the same taxable transaction,

the administrator may refund to the person the amount of property transfer tax paid by that person in respect of the portion on which both property transfer tax and tax under the Provincial Sales Tax Act have been paid.

[am. B.C. Regs. 17/2005, Sch. 3, s. 4; 30/2006; 122/2010; 91/2013, Sch., s. 8; 182/2024, s. 1.]

Repealed

Repealed. [B.C. Reg. 182/2024, s. 2.]

Information sharing — prescribed enactments

6.1

For the purposes of

section 32 (5) (

j) of the Act, the following enactments are prescribed:

the Business Number Act ;

section 8 of the Financial Administration Act .

[en. B.C. Reg. 121/2023, Sch. 9.]

Valuation of Life Estates and Leases

Interpretation

In this Part rent does not include an amount that is separately calculated under a lease agreement and is payable to a lessor in reimbursement for

taxes, or

reasonable expenses relating to the operation of a multi-tenant premises of which the demised premises form a part.

In this Part, the fair market value of the demised premises under a lease agreement does not include the value of improvements made by the lessee for which the lessee is not and will not be reimbursed by the lessor.

Determination of fair market value of lease agreements and life estates

The fair market value of an interest to be transferred under a lease agreement or life estate shall for the purposes of this Act be determined in accordance with this Part.

Term defined

In this Part, subject to

section 10 and subsections (2) and (4), term means, in relation to a lease agreement, the sum of

the number of years for which a lessee has the right to occupy the demised premises, and

the maximum number of years not counted under paragraph (

a) that, by the exercise of rights or options to renew or extend the lease agreement, the lessee may occupy the demised premises.

Subject to subsection (4), the term of a lease agreement shall be the unexpired portion of the term on the date application is made to register or transfer the lease agreement under the Land Title Act .

In this Part, subject to subsection (4), the term of a life estate shall be the number of years of life expectancy based on Table 3 remaining to the holder of the life estate on the date application is made to register the life estate under the Land Title Act .

Where the term of a lease agreement or life estate would otherwise be expressed as a fraction of a year or as a number of years plus a fraction of a year, the term shall be rounded up to the next whole number.

Fair market value of a lease modification agreement

Where the term of a lease agreement is extended by a lease modification agreement registered under the Land Title Act on or after March 23, 1987, the lease modification agreement is a taxable transaction.

The term of the lease modification agreement for the purposes of this

section is the sum of

the term of the lease agreement, before extension by the lease modification agreement, calculated under

section 9 (1) without regard to

section 9 (2) from the date the lease agreement was first executed, and

the number of years, applying

section 9 (4), by which the lease agreement is extended by the lease modification agreement.

For the purposes of subsection (2) (b), options or rights to renew or extend the lease agreement pursuant to the lease modification agreement shall be deemed to be exercised to give the maximum possible extension.

Where the term of the lease modification agreement is 30 years or less, its fair market value shall be the amount determined in accordance with the following formula:

ARP x PVF

where

ARP

the annual rent payment to be made during the last year for which rents are fixed pursuant to the lease agreement as extended by the lease modification agreement;

PVF

the present value factor set out in Column 2 of Table 2 that is opposite the number of years in Column 1 that corresponds to the number of years applicable under subsection (2) (b).

Where the term of the lease modification agreement exceeds 30 years,

section 14 applies for the purpose of calculating the fair market value of the lease modification agreement except that "P" shall equal the percentage in Column 2 of Table 1 that is opposite the period in Column 1 that corresponds to the number of years applicable under subsection (2) (b).

No tax is payable on a lease modification agreement having a term of 30 years or less.

Valuation of life estates

The fair market value of a life estate in land shall be the amount determined in accordance with the following formula:

VFS x P

where

VFS

the fair market value of the fee simple of the land determined

(

a) as though the life estate did not exist, and

(

b) under paragraph (

a) of "fair market value" in

section 1 of the Act;

the percentage in Column 2 of Table 1 that is opposite the period in Column 1 that corresponds to the term of the life estate.

Prepaid leases

The fair market value of a lease agreement shall be the amount of the rent where

the rent under the lease agreement is not subject to renegotiation and has been paid for the term of the lease agreement before the date of registration or will be paid within one year of that date, and

the lessor and the lessee deal with each other at arm's length.

Leases for a term not exceeding 30 years

Where

section 12 does not apply,

the term of the lease agreement does not exceed 30 years, and

the lessor and the lessee deal with each other at arm's length,

the fair market value of the lease agreement shall, subject to an election under subsection (2), be the amount determined in accordance with the following formula:

ARP x PVF

where

ARP

the annual rent payment to be made during the last year for which rents are fixed pursuant to a lease agreement;

PVF

the present value factor set out in Column 2 of Table 2 that is opposite the number of years in Column 1 that corresponds to the term of the lease agreement.

The lessee may elect to calculate the fair market value of the lease agreement under

section 14 where paragraphs (a), (

b) and (

c) of subsection (1) apply.

Other leases

Subject to sections 13 and 15 and subsection (2), the fair market value of a lease agreement to which

section 12 does not apply shall be the amount determined in accordance with the following formula:

VSI x P

where

VSI

the fair market value, determined under paragraph (

a) of "fair market value" in

section 1 of the Act, of the fee simple interest in all the demised premises;

the percentage set out in Column 2 of Table 1 opposite the period in Column 1 that corresponds to the term of the lease agreement.

For the purposes of subsection (1) where part of the improvements on a parcel of land are leased, the fair market value of the demised premises shall be determined in accordance with the following formula:

VSI x P x ARADP ARA

where

VSI

the fair market value, determined under paragraph (

a) of "fair market value" in

section 1 of the Act, of the land, including improvements, within which the demised premises are situated;

the percentage set out in Column 2 of Table 1 opposite the period in Column 1 that corresponds to the term of the lease agreement;

ARADP

the aggregate rentable area of the demised premises;

ARA

the aggregate rentable area of the improvements on the land within which the demised premises are situated.

Time share leases

Where

section 12 or 13 does not apply and the lease agreement is a time share plan as defined in the Real Estate Development Marketing Act , the fair market value of the lease agreement shall be the amount determined in accordance with the following formula:

A x

365.25

where

the amount determined under

section 14;

the number of days in a year on which the lessee is entitled to occupy the demised premises.

[am. B.C. Reg. 518/2004, Sch., s. 15.]

Table 1

Column 1 Term of Lease Agreement or Life Expectancy

Column 2 Percentage of Fair Market Value of the Demised Premises or the Land subject to the life estate

5 years or less

40%

More than 5 years but not more than 10 years

50%

More than 10 years but not more than 20 years

60%

More than 20 years but not more than 30 years

70%

More than 30 years but not more than 40 years

80%

More than 40 years but not more than 50 years

90%

More than 50 years

100%

Table 2

Column 1 Term of Lease Agreement

Column 2 Present Value Factor (at 8%)

1.0

1.8

2.6

3.3

4.0

4.6

5.2

5.7

6.2

6.7

7.1

7.5

7.9

8.2

8.6

8.9

9.1

9.4

9.6

9.8

10.0

10.2

10.4

10.5

10.7

10.8

10.9

11.1

11.2

11.3

Table 3

Life Expectancy Table

AGE OF TRANSFEREE

MALE LIFE EXPECTANCY

FEMALE LIFE EXPECTANCY

AGE OF TRANSFEREE

MALE LIFE EXPECTANCY

FEMALE LIFE EXPECTANCY

71.88

78.98

24.14

29.68

71.67

78.65

23.33

28.80

70.73

77.70

22.52

27.93

69.77

76.74

21.73

27.06

68.80

75.77

20.95

26.20

67.84

74.79

20.18

25.35

66.86

73.81

19.43

24.51

65.88

72.83

18.69

23.68

64.90

71.84

17.96

22.85

63.91

70.86

17.25

22.03

62.92

69.87

16.56

21.22

61.94

68.88

15.88

20.42

60.95

67.90

15.21

19.63

59.97

66.91

14.57

18.85

59.00

65.93

13.93

18.09

58.04

64.95

13.32

17.33

57.10

63.97

12.72

16.59

56.16

63.00

12.14

15.86

55.23

62.02

11.58

15.14

54.31

62.05

11.03

14.44

53.39

60.08

10.49

13.75

52.47

59.11

9.98

13.08

51.55

58.14

9.48

12.42

50.63

57.16

9.00

11.78

49.71

56.19

8.53

11.15

48.78

55.22

8.09

10.54

47.86

54.25

7.66

9.95

46.92

53.27

7.25

9.39

45.99

52.30

6.85

8.84

45.05

51.33

6.48

8.32

44.11

50.36

6.12

7.82

43.17

49.39

5.78

7.34

42.22

48.42

5.45

6.88

41.28

47.45

5.14

6.45

40.34

46.48

4.85

6.04

39.39

45.51

4.57

5.65

38.45

44.55

4.30

5.28

37.52

43.59

4.05

4.93

36.58

42.63

3.82

4.60

35.65

41.68

3.59

4.29

34.72

40.73

3.38

3.99

33.80

39.78

3.19

3.71

32.88

38.84

2.96

3.39

31.97

37.90

2.65

2.99

31.06

36.97

2.27

2.51

30.16

36.04

1.84

1.99

29.27

35.11

1.41

1.50

28.39

34.19

1.05

1.10

27.52

33.28

0.79

0.81

26.66

32.37

0.60

0.61

25.81

31.47

102 or older

0.50

0.50

24.97

30.57

Principal Residence Exemption

Valuation of residential improvements

For the purposes of

section 15 (2) (

a) and (4) (

a) of the Act, the fair market value of the interest in improvements transferred that are improvements classified as property used for residential purposes shall be determined in accordance with the following formula:

VTT

VFS

x VRI

where

VTT

the fair market value in respect of the taxable transaction, determined in accordance with the Act and this regulation;

VFS

the value of the fee simple interest in the land to which the taxable transaction relates, determined

(

a) as though that land were being transferred in a taxable transaction referred to in paragraph (a) (

i) of the definition of "taxable transaction" in

section 1 of the Act, and

(

b) in accordance with paragraph (

a) of the definition of "fair market value" in

section 1 of the Act;

VRI

the value of the improvements to which the taxable transaction relates that are improvements classified as property used for residential purposes, determined

(

a) as though those improvements were being transferred in a taxable transaction referred to in paragraph (a) (

i) of the definition of "taxable transaction" in

section 1 of the Act, and

(

b) in accordance with paragraph (

a) of the definition of "fair market value" in

section 1 of the Act.

[en. B.C. Reg. 242/91; am. B.C. Reg. 86/2026.]

Valuation of land not including improvements

For the purposes of

section 15 (2) (

b) and (4) (

b) of the Act, the fair market value of the land transferred, not including improvements, shall be determined in accordance with the following formula:

VTT

VFS

x VL

where

VTT

the fair market value in respect of the taxable transaction, determined in accordance with the Act and this regulation;

VFS

the value of the fee simple interest in the land to which the taxable transaction relates, determined in the same manner as under

section 16;

the value of the land to which the taxable transaction relates, not including improvements, determined

(

a) as though that land were being transferred in a taxable transaction referred to in paragraph (a) (

i) of the definition of "taxable transaction" in

section 1 of the Act, and

(

b) in accordance with paragraph (

a) of the definition of "fair market value" in

section 1 of the Act.

[en. B.C. Reg. 242/91.]

Additional Tax for Foreign

Entities and Taxable Trustees

Specified Areas and Rate of Tax

Specified areas

17.01

For the purposes of paragraph (

c) of the definition of "specified area" in

section 2.01 of the Act, each of the following is a specified area:

Capital Regional District;

Regional District of Central Okanagan;

Fraser Valley Regional District;

Regional District of Nanaimo.

[en. B.C. Reg. 21/2018, s. 2.]

Rate of tax

17.02

For the purposes of

section 2.02 (4) of the Act, the rate of tax is 20%.

[en. B.C. Reg. 21/2018, s. 2.]

Transition for specified areas — transfer under court order,

foreclosure, separation agreement, joint tenancy or estate of deceased

17.03

A transferee is exempt from the payment of tax under

section 2.02 (3) (

a) of the Act in respect of a taxable transaction if all of the following apply:

the subject matter of the taxable transaction includes residential property located, in whole or in part, within a specified area referred to in

section 17.01 of this regulation;

the subject matter of the taxable transaction does not include residential property located, in part, in the Metro Vancouver Regional District;

the taxable transaction is one of the following:

a transfer under a court order made before February 21, 2018;

a transfer under an order absolute of foreclosure, if the order nisi of foreclosure was made before February 21, 2018;

iii

a transfer from a transferor to a transferee who is a spouse or former spouse of the transferor, if the transfer is made pursuant to a written separation agreement under the Family Law Act and the written separation agreement was made before February 21, 2018;

a transfer by operation of law to the survivor of a joint tenancy of the land consequent on the death of a joint tenant of the land, if the joint tenant died before February 21, 2018;

a transfer from a transferor who is a personal representative to a transferee who is a beneficiary of an estate of a deceased person, if the deceased person died before February 21, 2018;

the transferee tenders with the application for registration of the taxable transaction an application for an exemption under this section.

An application for an exemption under this

section must

be in the form required by the minister, and

include a consent, in the form required by the minister, by which the transferee consents to the administrator conducting inquiries that the administrator considers necessary to confirm that the transferee qualifies for the exemption.

[en. B.C. Reg. 21/2018, s. 2.]

Transition for specified areas — transfer under written agreement

17.04

Subject to subsection (3), a transferee is exempt from the payment of tax under

section 2.02 (3) (

a) of the Act in respect of a taxable transaction if all of the following apply:

the subject matter of the taxable transaction includes residential property located, in whole or in part, within a specified area referred to in

section 17.01 of this regulation;

the subject matter of the taxable transaction does not include residential property located, in part, in the Metro Vancouver Regional District;

the taxable transaction is a transfer under a written agreement made before February 21, 2018;

the taxable transaction is not a transfer to which

section 17.03 (1) of this regulation applies;

the application for registration of the taxable transaction is made at a land title office on or before May 18, 2018;

the transferee tenders with the application for registration of the taxable transaction

an application for an exemption under this section, and

a true copy of the written agreement referred to in paragraph (

c) of this subsection.

An application for an exemption under this

section must

be in the form required by the minister, and

include a consent, in the form required by the minister, by which the transferee consents to the administrator conducting inquiries that the administrator considers necessary to confirm that the transferee qualifies for the exemption.

Subsection (1) does not apply if, on or after February 21, 2018, the written agreement referred to in subsection (1) (

c) is assigned to a transferee who is a foreign entity or taxable trustee.

[en. B.C. Reg. 21/2018, s. 2.]

Exemptions and Refunds

Definitions

17.1

In this Division:

eligible transaction means a taxable transaction for which an application for registration is made at a land title office on or after March 31, 2017;

principal residence has the same meaning as in

section 12.01 (1) of the Act;

provincial nominee means an individual who is named in a valid nomination certificate issued by the government in accordance with an agreement referred to in

section 8 (1) of the Immigration and Refugee Protection Act (Canada) between the government and Canada;

qualifying transferee means the following:

in relation to a specified transaction referred to in

section 18 (2), an individual who

on the registration date,

is both a foreign national and a provincial nominee, and

intends to inhabit the improvement referred to in

section 18 (2) (

a) as the individual's principal residence,

immediately after the registration of the transaction, holds an interest in the residential property that is the subject matter of the transaction in a capacity other than as a taxable trustee, and

iii

has not previously been a qualifying transferee under a specified transaction to which

section 18 (3) applies;

in relation to an eligible transaction referred to in

section 19 (1), an individual who

on the registration date,

is both a foreign national and a provincial nominee, and

intends to inhabit the improvement referred to in

section 19 (1) (

a) as the individual's principal residence,

immediately after the registration of the transaction, holds an interest in the residential property that is the subject matter of the transaction in a capacity other than as a taxable trustee, and

iii

has not previously been a qualifying transferee under

a specified transaction to which

section 18 (3) applies, or

an eligible transaction to which

section 19 (2) applies;

registration date means the following:

in relation to a specified transaction, the date on which the application for registration of the specified transaction is made at a land title office;

in relation to an eligible transaction, the date on which the application for registration of the eligible transaction is made at a land title office;

in relation to a taxable transaction to which

section 21 (2) or 22 (2) (

a) or (

b) applies, the date on which the application for registration of the taxable transaction is made at a land title office;

specified transaction means a taxable transaction for which an application for registration is made at a land title office before March 31, 2017;

taxable transaction means a taxable transaction to which

section 2.02 (3) of the Act applies.

[en. B.C. Reg. 108/2017, App. 2, s. 1; am. B.C. Regs. 21/2018, s. 4; 121/2021, s. 1.]

Provincial nominee exemption — specified transactions

Repealed. [B.C. Reg. 108/2017, App. 2, s. 2.]

Subsection (3) applies to a specified transaction if

on the registration date, the residential property that is the subject matter of the specified transaction includes an improvement that is permanently affixed to the property and is intended to be a dwelling, and

any transferee is a qualifying transferee.

Subject to subsection (4), a transferee who applies for registration, at a land title office, of a specified transaction to which this subsection applies is exempt from the obligation to pay tax under

section 2.02 (3) (

a) of the Act on that transaction in respect of that portion of the transaction's taxable amount that is equal to the qualifying transferee's proportionate share of the transaction's fair market value.

If, immediately after the registration of the specified transaction, the qualifying transferee holds an interest in the residential property as a taxable trustee and in a capacity other than as a taxable trustee, the transferee referred to in subsection (3) is not exempt from the payment of tax under

section 2.02 (3) (

a) of the Act on that transaction in respect of the interest held as a taxable trustee.

[en. B.C. Reg. 108/2017, App. 1; am. B.C. Reg. 108/2017, App. 2, s. 2.]

Provincial nominee exemption — eligible transactions

Subsection (2) applies to an eligible transaction if

on the registration date, the residential property that is the subject matter of the eligible transaction includes an improvement that is permanently affixed to the property and is intended to be a dwelling, and

any transferee is a qualifying transferee.

Subject to subsections (3) and (4) and

section 20, a transferee who applies for registration, at a land title office, of an eligible transaction to which this subsection applies is exempt from the obligation to pay tax under

section 2.02 (3) (

a) of the Act on that transaction in respect of that portion of the transaction's taxable amount that is equal to the qualifying transferee's proportionate share of the transaction's fair market value.

If, immediately after the registration of the eligible transaction, the qualifying transferee holds an interest in the residential property as a taxable trustee and in a capacity other than as a taxable trustee, the transferee referred to in subsection (2) is not exempt from the payment of tax under

section 2.02 (3) (

a) of the Act on that transaction in respect of the interest held as a taxable trustee.

The transferee referred to in subsection (2) must tender with the application for registration of the eligible transaction an application for an exemption under this

section that

is in the form required by the minister, and

includes a consent, in the form required by the minister, by which the qualifying transferee consents to the administrator conducting inquiries respecting the qualifying transferee that the administrator considers necessary to confirm the qualifications of the qualifying transferee for the purposes of this section.

[en. B.C. Reg. 108/2017, App. 2, s. 3.]

Provincial nominee refund — eligible transactions

A transferee who is entitled to an exemption under

section 19 in respect of an eligible transaction and who fails to apply for that exemption on the registration date may, within 18 months after that date, apply to the administrator for a refund of the tax paid by the transferee under

section 2.02 (3) (

a) of the Act on the registration of the transaction.

On receiving an application for a refund under subsection (1), the administrator,

if satisfied that the transferee would have qualified for an exemption under

section 19 on the registration date, must refund to the transferee the portion of the amount of tax paid by the transferee that is equivalent to the amount of the exemption for which the transferee would have been entitled had the application for the exemption been made on the registration date, or

if not satisfied that the transferee would have qualified for an exemption under

section 19 on the registration date, must refuse the application and provide the transferee with written notice under subsection (3) of the refusal.

If an application for a refund under subsection (1) is refused, the administrator must send a letter to the applicant stating the reason for the refusal, and the letter is deemed to be a notice of assessment made under

section 18 of the Act for the purposes of allowing the applicant to file a notice of appeal under

section 19 (1) of the Act.

[en. B.C. Reg. 108/2017, App. 2, s. 3; am. B.C. Reg. 186/2024, Sch., s. 3.]

Refund of additional tax under Act if transferee becomes citizen or permanent resident

Repealed. [B.C. Reg. 121/2021, s. 2.]

A transferee may apply to the administrator for a refund of the tax paid by the transferee under

section 2.02 (3) (

a) of the Act on the registration of a taxable transaction if all of the following apply:

on the registration date, the transferee is a foreign national;

immediately after the registration of the transaction, the transferee holds an interest in the residential property that is the subject matter of the transaction in a capacity other than as a taxable trustee;

on the registration date, the residential property includes an improvement that is permanently affixed to the property and is intended to be a dwelling;

the transferee continuously inhabits the improvement referred to in paragraph (

c) as the transferee's principal residence throughout a period of not less than one year beginning on a date that is not more than 92 days after the registration date;

the transferee becomes a Canadian citizen or a permanent resident of Canada on or before the first anniversary of the registration date;

the transferee has not previously

obtained a refund under this section, or

been a qualifying transferee under

a specified transaction to which

section 18 (3) of this regulation applies, or

an eligible transaction to which

section 19 (2) applies;

the application for the refund is made on a date that is

after the first anniversary of the date on which the period referred to in paragraph (

d) begins, and

before the date that is 18 months after the registration date.

On receiving an application for a refund under subsection (2), the administrator,

if satisfied that the requirements for the refund set out in subsection (2) (

a) to (

g) have been met but subject to subsection (4), must refund to the transferee the portion of the amount of tax paid by the transferee under

section 2.02 (3) (

a) of the Act that is attributable to the transferee's proportionate share of the taxable transaction's fair market value, or

if not satisfied that the requirements for the refund set out in subsection (2) (

a) to (

g) of this

section have been met, must refuse the application and provide the transferee with written notice under subsection (6) of the refusal.

If, immediately after the registration of the taxable transaction, the transferee holds an interest in the residential property as a taxable trustee and in a capacity other than as a taxable trustee, the amount of the refund payable under subsection (3) (

a) is equal to the portion of the amount of tax paid by the transferee that is attributable to the interest held in the capacity other than as a taxable trustee.

Interest, calculated from the day after the registration date, is payable on tax refunded to a transferee under subsection (3) (a).

If an application for a refund under subsection (2) is refused, the administrator must send a letter to the applicant stating the reason for the refusal, and the letter is deemed to be a notice of assessment made under

section 18 of the Act for the purposes of allowing the applicant to file a notice of appeal under

section 19 (1) of the Act.

Sections 6 (1) (

b) and 7 of the Interest on Overdue Accounts Payable Regulation, B.C. Reg. 215/83, apply for the purposes of calculating interest payable under subsection (5) of this section.

[en. B.C. Reg. 108/2017, App. 3; am. B.C. Reg. 186/2024, Sch., s. 3.]

Exemption for general partner or bare trustee of limited partnership

In this section:

bare trustee has the same meaning as in

section 12.13 (1) of the Act;

foreign limited partner means a limited partner that

is a foreign entity, or

holds an interest in the limited partnership in trust for a foreign entity;

general partner has the same meaning as in

Part 3 of the Partnership Act ;

limited partner has the same meaning as in

Part 3 of the Partnership Act ;

limited partnership means a limited partnership

formed under

section 51 of the Partnership Act , or

registered under

section 80 of the Partnership Act ;

profit includes compensation in the form of income on contributions made by limited partners;

taxation year has the same meaning as in

section 249 (1) of the Income Tax Act (Canada).

Subject to the conditions set out in subsection (3), a transferee is exempt from the obligation to pay tax under

section 2.02 (3) (

a) of the Act in respect of the transferee's proportionate share of a taxable transaction's fair market value if the transferee is one of the following:

a general partner in a limited partnership;

a corporation, other than a foreign corporation, and a bare trustee of a trust in respect of which the beneficiaries include one or more general partners or limited partners in a limited partnership.

The exemption under subsection (2) (

a) or (

b) applies if all of the following conditions are met in relation to the limited partnership and the residential property to which the taxable transaction relates:

on the registration date, each general partner in that limited partnership is

a Canadian citizen,

a permanent resident of Canada, or

iii

a corporation other than a foreign corporation;

on the registration date, the combined interest of all foreign limited partners accounts for less than half of the entitlement of all partners to share in the profits of that limited partnership;

immediately after the registration of the taxable transaction,

the transferee's interest in that residential property is limited partnership property, and

no person has a beneficial interest in respect of the transferee's interest in that residential property other than as a general partner or limited partner in that limited partnership;

each partner in that limited partnership is or will be resident in Canada, for income tax purposes, throughout the taxation year in which the taxable transaction occurs.

For the purposes of subsection (3) (d), if

a person is a partner in a partnership, and

the partnership referred to in paragraph (

a) is a partner in another partnership,

the person referred to in paragraph (

a) is deemed to be a partner in the other partnership referred to in paragraph (b).

An application for an exemption under subsection (2) (

a) or (

b) must

be tendered with the transferee's application for registration of the taxable transaction,

be in the form required by the administrator, and

include a consent, in the form required by the administrator, by which the transferee consents to the administrator conducting inquiries that the administrator considers necessary to confirm that the transferee qualifies for the exemption.

[en. B.C. Reg. 121/2021, s. 3.]

Refund for general partner or bare trustee of limited partnership

A transferee who is entitled to an exemption under

section 22 (2) (

a) or (

b) in respect of a taxable transaction and who fails to apply for that exemption on the registration date may, within 6 years after that date, apply to the administrator for a refund of the tax paid by the transferee under

section 2.02 (3) (

a) of the Act on the registration of the taxable transaction.

On receiving an application for a refund under subsection (1), the administrator must do one of the following:

if satisfied that the transferee would have qualified for an exemption under

section 22 (2) (

a) or (

b) on the registration date, refund to the transferee the portion of the amount of tax paid by the transferee that is equivalent to the amount of the exemption to which the transferee would have been entitled had the application for the exemption been made on the registration date;

if not satisfied that the transferee would have qualified for an exemption under

section 22 (

a) or (

b) on the registration date,

refuse the application, and

send to the transferee a letter setting out the reasons for the refusal.

A letter sent under subsection (2) (

b) is deemed be a notice of assessment made under

section 18 of the Act for the purposes of allowing the applicant to file a notice of appeal under

section 19 (1) of the Act.

[en. B.C. Reg. 121/2021, s. 4; am. B.C. Reg. 186/2024, Sch., s. 3.]

Arbitrations

Definition and application of Arbitration Act

In this Part, arbitration means an arbitration under

section 22 of the Act.

Subject to this Part, the provisions of the Arbitration Act apply in relation to an arbitration.

For the purpose of applying the Arbitration Act in relation to an arbitration, an arbitration agreement in relation to a determination of fair market value arises if both of the following apply:

a person serves on the minister a notice of arbitration under

section 22 of the Act;

the notice of arbitration meets the requirements set out in

section 22 of the Act and is served within the time required by that section.

[en. B.C. Reg. 88/2025.]

Sole arbitrator only

An arbitral tribunal appointed to hear an arbitration must not be composed of more than one arbitrator.

[en. B.C. Reg. 88/2025.]

Hearings and written proceedings

Despite

section 30 (1) and (2) [hearings and written proceedings] of the Arbitration Act , an arbitral tribunal must not hold an oral hearing for the presentation of evidence or for oral argument in an arbitration unless the arbitral tribunal determines an oral hearing is necessary to satisfy its duties under

section 21 of that Act.

The duration of an oral hearing in an arbitration or, if there is more than one oral hearing in the arbitration, the duration of all the oral hearings taken together, may not exceed one day unless the arbitral tribunal determines that a longer oral hearing or hearings are necessary to satisfy its duties under

section 21 of the Arbitration Act .

[en. B.C. Reg. 88/2025.]

Costs of arbitration

Section 50 (2) and (3) [costs] of the Arbitration Act does not apply in relation to the costs of an arbitration.

Each party to an arbitration is responsible for paying

the party's own legal fees and expenses,

the fees and expenses of the party's expert witnesses, and

subject to subsection (3), any other expenses incurred by the party in connection with the arbitration.

The parties to an arbitration must pay equal shares of the following costs of an arbitration:

the fees and expenses of the arbitrator;

any administration fees of an institution.

The arbitral tribunal may determine the amount of the costs referred to in subsection (3), including by reference to actual reasonable fees and expenses.

[en. B.C. Reg. 88/2025.]

[Provisions relevant to the enactment of this regulation: Property Transfer Tax Act , R.S.B.C. 1996, c. 378, s. 37.]