Certain 2016 income tax rate changes may need to be reflected in your interim financial statements under IFRS, ASPE or US GAAP.
If you are involved in preparing financial reports for corporations or other organizations, certain 2016 income tax rate and other changes may need to be reflected in your interim period financial statements under International Financial Reporting Standards (IFRS), Accounting Standards for Private Enterprises (ASPE) or U.S. generally accepted accounting principles (U.S. GAAP).
Although the federal general income tax rate for 2016 has not changed, New Brunswick and Newfoundland and Labrador have both increased their general corporate income tax rates for 2016. Note that Quebec’s gradual reduction of its general corporate tax rate as proposed in its 2015 budget is still not substantively enacted or enacted for tax accounting purposes. Under the proposal, Quebec plans to gradually reduce its general corporate tax rate to 11.5% (from the 11.9% current level) over four years starting in 2017.
The federal small business income tax rate had been scheduled to fall but the federal government cancelled further cuts in the rate in its 2016 budget. (The rate was scheduled to fall to 9% by 2019.) As a result, the federal small business rate will remain at its current level of 10.5% for 2016 and subsequent years. Two provinces, Alberta and New Brunswick, both decreased their small business tax rates.
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