Ontario’s Minister of Finance Charles Sousa announced small business tax relief in the province’s Fall Economic Update.
The update, released on November 14, 2017, reduces the small business tax rate to 3.5% (from 4.5%) effective for 2018 and increases the non-eligible dividend tax rate for individuals. The update also introduces new apprentice training grants and incentives for hiring young workers, among other changes.
These corporate tax changes appear intended to help businesses offset the upcoming increase to the minimum wage, which is expected to rise to $14.00 (from $11.60) on January 1, 2018 and to $15.00 on January 1, 2019.
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