The general corporate income tax rate will decrease from 11% to 10%, effective January 1, 2020.
The provincial education and tuition tax credits are eliminated as of the 2020 taxation year.
Indexation of personal income tax credits and income brackets is eliminated as of January 1, 2020.
The provincial Scientific Research and Experimental Development (SR&ED) tax credit is eliminated as of January 1, 2020.
Newfoundland and Labrador
The Newfoundland and Labrador Temporary Deficit Reduction Levy, which was in effect from 2016 to 2019, is eliminated.
The provincial small business corporate tax rate is reduced from 3.5% to 3.2%, effective as of January 1, 2020. That rate applies on the first $500,000 of active business income of eligible corporations.
Prince Edward Island
The basic personal amount is increased to $10,000.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.