Nova Scotia has announced an increase to its small business income threshold.
Corporations that are Canada-controlled private corporations throughout the year may claim the small business deduction. In general, the small business deduction is available for active business income in Canada, to a maximum threshold. The new threshold will rise to $500,000 (from $350,000). As a result, more small businesses in Nova Scotia will find that their income will be subject to the province's lower small business corporate tax rate of 3% (as opposed to the higher general rate of, 16%). This change will be announced in the province’s 2017 budget, which will be tabled on April 27, 2017.
For more information, contact your KPMG adviser.
Information is current to April 04, 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