First reading for PEI Bill 57, a bill that includes changes to the small business tax
P.E.I. Bill 57 received first reading on November 21, 2018. This bill reduces small business tax rate to 3.5% (from 4%) effective January 1, 2019, among other changes.
This reduction represents an additional 0.5% decrease to the province's small business tax rate, which was already reduced earlier this year to 4% (from 4.5%), effective January 1, 2018.
The new 3.5% small business rate is considered substantively enacted for purposes of IFRS and Accounting Standards for Private Enterprise (ASPE) on November 21, 2018, the day the bill received first reading (as P.E.I. has a majority government).
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Information is current to December 04, 2018. 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