The small business tax rate would decrease to 9% (from 10.5%) by 2019 as part of new changes to the private company tax proposals.
In particular, the small business tax rate will decrease to 10% effective January 1, 2018 and to 9% effective January 1, 2019. The government also said it has planned additional announcements in the upcoming week to provide further details of changes that it intends to make in response to Finance’s recent public consultation on these controversial proposals. While the government stated that it is committed to its proposed private company tax measures to address tax planning involving income sprinkling effective January 1, 2018, it is cancelling changes to limit access to the Lifetime Capital Gains Exemption (LCGE). The government also indicated that it will address certain issues in its passive income proposals.
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