Bill 32 enacts the recently announced decrease to the small business tax rate as well as certain tax measures from New Brunswick's 2016 budget. Bill 32 is considered to be substantively enacted for purposes of IFRS and Accounting Standards for Private Enterprise (ASPE) on March 29, 2016, which is the day it received first reading in the provincial legislature (as New Brunswick has a majority government). Bill 32 is enacted for U.S. GAAP purposes on July 8, 2016, the date the bill received Royal Assent.

Bill 32 reduces the New Brunswick small business corporate income tax rate from 4% to 3.5%, effective April 1, 2016.

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Information is current to July 19, 2016. 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.