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2019 P.E.I. Budget Bill Receives Royal Assent

2019 P.E.I. Budget Bill Receives Royal Assent

Province decreases its small business tax rate to 3.0% (from 3.5%) effective January 1, 2020

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Prince Edward Island's budget implementation bill received third reading and Royal Assent on July 12, 2019. As a result, several income tax measures that were introduced in Prince Edward Island's 2019 budget are now law.

The corporate income tax measures in Bill 12 are considered substantively enacted for IFRS and Accounting Standards for Private Enterprise (ASPE) purposes on July 12, 2019, the date the bill received third reading, as Prince Edward Island has a minority government. The corporate income tax measures in Bill 12 are considered enacted for U.S. GAAP purposes also on July 12, 2019, the date the bill received Royal Assent.

Corporate tax measures

Bill 12 includes a measure to reduce the province's small business tax rate to 3.0% (from 3.5%), effective January 1, 2020.

Other tax measures

Bill 12 also includes personal tax measures that were announced in Prince Edward Island's 2019 budget, including measures to:

  • Increase the province's basic personal amount to $10,000 (from $9,160), with proportionate changes to the spouse and equivalent-to-spouse amounts, effective January 1, 2020
  • Increase of the province's low income threshold to $18,000 (from $17,000), effective January 1, 2020.

For more information, contact your KPMG adviser.

Information is current to July 23, 2019.

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

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