Northwest Territories decreases its small business tax rate to 2% (from 4%), effective January 1, 2021
The measure to reduce the small business income tax rate in the Northwest Territories to 2% (from 4%) is now substantively enacted, after Bill 16 received third reading on March 12, 2021. The decrease in the small business income tax rate is effective January 1, 2021.
The corporate income tax measure in Bill 16 is considered substantively enacted for IFRS and Accounting Standards for Private Enterprise (ASPE) purposes on March 12, 2021, the date the bill received third reading, as Northwest Territories has a consensus-style government.
The corporate income tax measure in Bill 16 will be considered enacted for U.S. GAAP purposes on the date the bill receives Assent.
The bill also introduces two personal income tax amendments.
Personal tax measures
Bill 16 includes retroactive personal tax amendments to harmonize the Northwest Territories tax regime with the federal system. The amendments:
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Information is current to March 15, 2021. 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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