The small business tax rate would decrease to 9% (from 10.5%) by 2019 as part of new changes under the private company tax proposals.
The small business tax rate reduction would be phased in—reduced to 10% effective 1 January 2018 and to 9% effective 1 January 2019.
The government said it has planned additional announcements to provide further details of changes that it intends to make in response to Finance’s recent public consultation on these proposals. While the government stated that it is committed to its proposed private company tax measures to address tax planning involving income sprinkling effective 1 January 2018, it is cancelling changes to limit access to the Lifetime Capital Gains Exemption (LCGE). The government also indicated that it will address certain issues in its passive income proposals.
Read an October 2017 report prepared by the KPMG member firm in Canada
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