Canadian Tax Adviser, March 29, 2016. New Brunswick announced on March 17 that it will decrease its small business income tax rate to 3.5% (from 4%), effective April 1, 2016. This will be the second reduction in the small business tax rate since September 2014. The small business tax rate applies to the first $500,000 of a Canadian controlled private corporation's active business income.
The announcement did not mention whether there will be an adjustment to the New Brunswick dividend tax credit on non-eligible dividends as a result of the tax rate decrease.
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