Canada: Legislative changes, private corporations | KPMG | GLOBAL

Canada: Legislative changes affecting controlled private corporations

Canada: Legislative changes, private corporations

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.


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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

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