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.

Related content

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

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal



KPMG's new digital platform

KPMG's new digital platform