Real Property Transfer Tax Wholly Owned Corporation Exemption

This section provides information on eligibility for a waiver of Real Property Transfer Tax where a person transfers real property to a corporation that the person wholly owns; or a corporation transfers real property to another corporation and both corporations are wholly owned by the same person.

What is the Real Property Transfer Tax wholly owned corporation exemption?

Real Property Transfer Tax that normally applies to the registration of a deed of conveyance in Prince Edward Island may be waived where:

• a person transfers real property to a corporation that the person wholly owns; or
• where a corporation transfers real property to another corporation and both corporations are wholly owned by the same person.

What conditions must be met to qualify for this exemption?

The Real Property Transfer Tax Act allows a person to transfer real property to a corporation that the person wholly owns, exempt of real property transfer tax. However, provisions in the Act cancel this exemption in situations where the person who transferred the real property ceases to wholly own the corporation at any time during the twelve months immediately after the date of transfer.

Where the exemption is cancelled, the transfer tax is due and payable by the person that received the real property on the date the person ceases to wholly own the corporation. 

The Act also allows a corporation to transfer real property to another corporation, where both corporations are wholly owned by the same person, exempt of real property transfer tax. However provisions in the Act cancel this exemption in situations where the corporation that received the real property in the transfer ceases to be wholly owned by the person at any time during the twelve months immediately after the date of transfer.

Where the exemption is cancelled, the transfer tax is due and payable by the corporation that received the real property on the date the person ceases to wholly own the corporation.

Who should I contact if I have questions about the Real Property Transfer Tax wholly owned corporation exemption? 

Taxation and Property Records
Phone: (902) 368-4070
Fax: (902) 368-6164
Email: taxandland@gov.pe.ca