Canada: New Brunswick lowers small business tax rate | KPMG | GLOBAL

Canada: New Brunswick lowers small business tax rate

Canada: New Brunswick lowers small business tax rate

New Brunswick announced 17 March 2016 that it will decrease its small business income tax rate to 3.5% (from 4%), effective 1 April 2016. This will be the second reduction in the small business tax rate since September 2014.


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In New Brunswick, the small business tax rate applies to the first $500,000* of a Canadian controlled private corporation's active business income. The announcement did not mention whether there will be an adjustment to the New Brunswick dividend tax credit on non-eligible dividends as a result of the tax rate decrease. 


*$=Canadian dollar

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