Royal Assent for B.C. Budget-Update Bill | KPMG | GLOBAL

Royal Assent for B.C. Budget-Update Bill

Royal Assent for B.C. Budget-Update Bill

British Columbia Bill 2 received Royal Assent on November 2, 2017.

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This bill includes tax measures from the province's 2017 budget update, as well as several tax measures that are identical or similar to ones contained in B.C's previous 2017 budget bill, Bill 8. Bill 8 was introduced on February 21, 2017, but died on the order paper after the legislature dissolved on April 11, 2017.

Corporate income tax measures in Bill 2 that were also included in the old budget Bill 8 are considered to be substantively enacted for purposes of IFRS and Accounting Standards for Private Enterprise (ASPE) on February 21, 2017, which is the date the former bill received first reading (when B.C. had a majority government).

The corporate income tax measures in Bill 2 that were not previously included in Bill 8 are considered substantively enacted on October 26, 2017, the date Bill 2 received third reading (as B.C. has a minority government). Bill 2 is enacted for U.S. GAAP purposes on November 2, 2017, the date it received Royal Assent.

Corporate income tax measures
Bill 2 includes the following corporate income tax measures:

  • The general corporate income tax rate is increased to 12% (from 11%), effective January 1, 2018 
  • The small business corporate income tax rate is reduced to 2.0% (from 2.5%), effective April 1, 2017 
  • Cancellation of the planned phase-out of the provincial preferential tax rate for credit unions and restoration of 100% of the provincial preferential tax rate for credit unions, effective January 1, 2017 
  • Restrictions for international business activities from qualifying for corporate income tax refunds, effective September 12, 2017.

For a complete analysis of the substantive enactment of B.C. Bill 2's measures and for details of other measures included in Bill 2, see KPMG's Canadian Tax Advisor, "Third Reading for British Columbia Budget Update Bill"

For more information, contact your KPMG adviser.

Information is current to November 14, 2017. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour 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 upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

© 2017 KPMG LLP, a Canada limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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