Legislation in Canada with tax rate changes for individuals and trusts—and thus consequential changes affecting Canadian controlled private corporations—received first reading on 9 December 2015.
The legislation (Bill C-2) includes measures for a reduction in the federal individual (personal) tax rate for income between $45,283 and $90,563* to 20.5% (from 22%) and an increase of 4% in the individual tax rate for income over $200,000 to 33% (from 29%) starting 1 January 2016.
*$ = Canadian dollar
Bill C-2 includes several tax measures affecting Canadian controlled private corporations because of the change to the top individual income tax rate of 33%.
Read a December 2015 report [PDF 51 KB] prepared by the KPMG member firm in Canada: CCPC RDTOH Legislation Receives First Reading
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.