New Brunswick's budget implementation bill received Royal Assent on 14 June 2019.
Bill 22 enacts the province's decision not to align with federal tax measures to phase out the small business limit for Canadian-controlled private corporations (CCPCs) based on passive income.
Bill 22 amends the province’s income tax law to deem the federal passive investment income grind to the small business limit to be zero for purposes of calculating the New Brunswick small business limit calculation. Under the federal measures, the small business limit is phased out on a straight-line basis for CCPCs that, together with associated corporations, have between $50,000* and $150,000 of adjusted aggregate investment income for tax years that begin after 2018.
*$ = Canadian dollar
Read a June 2019 report prepared by the KPMG member firm in Canada
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