Canada: Tax legislation in New Brunswick, first reading

Canada: Tax legislation in New Brunswick, first reading

New Brunswick Bill 32—that includes a reduction in the rate of the small business tax and adjustments to the dividend tax credit provisions—received first reading on 29 March 2016.

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There are measures in Bill 32 to: 

  • Reduce the small business tax rate to 3.5% (from 4%) effective 1 April 2016
  • Lower the individual (personal) income taxes for individuals with taxable income over $150,000 (Canadian dollars) to 20.3%, down from 21%, and to eliminate the top marginal individual income tax rate of 25.75% (retroactive to 1 January 2016)
  • Adjust the province's dividend tax credit rate on non-eligible dividends as a consequence of the reduction in the small business tax rate 
  • Introduce a refundable provincial harmonized sales tax (HST) credit 

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