Canada: Some corporate tax measures enacted

Canada: Some corporate tax measures enacted

Bill C-59 implements certain measures announced in the 2015 federal budget, and received Royal Assent on 23 June 2015. The bill received its first reading in the House of Commons on 7 May 2015.


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Among the corporate tax measures that were enacted are the following:

  • A reduction in the small business income tax rate that applies to the first $500,000* of qualifying active business income of a Canadian-controlled private corporation to 9% (from 11%) in 0.5% increments from 2016 to 2019
  • The introduction of a new CCA Class 53 with an accelerated CCA rate of 50% per year on a declining balance basis for machinery and equipment assets acquired after 2015 and before 2026 that would otherwise be included in Class 29

Bill C-59 does not include the budget's more substantial corporate tax changes, and observers believe that enacting legislation for these measures will not be until after the upcoming federal election expected in October 2015.

Read a June 2015 report prepared by the KPMG member firm in Canada: Federal Budget Bill C-59 Passed Into Law - Next Up, Fall General Election

*$=Canadian dollar

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