Canadian Tax Adviser, December 15, 2015. Bill C-2, which enacts tax rate changes for individuals and trusts as well as consequential changes affecting Canadian controlled private corporations, received first reading on December 9, 2015. The bill, previously presented in a Notice of Ways and Means Motion (NWMM) dated December 7, 2015, includes a reduction in the federal personal tax rate for income between $45,283 and $90,563 to 20.5% (from 22%) and an increase of 4% in the personal tax rate for income over $200,000 to 33% (from 29%) starting January 1, 2016. The bill also reduces the Tax-Free Savings Account contribution limit to $5,500 per year (from $10,000 per year) starting in 2016.
The included tax measures are considered to be substantively enacted for purposes of IFRS and ASPE as of December 9, 2015.
Bill C-2 contains changes to several tax measures affecting Canadian controlled private corporations as a result of the introduction of the top personal income tax rate of 33%. Bill C-2 contains measures that:
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Information is current to December 15, 2015. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500