Canada: “Small business” income tax rate decrease (Northwest Territories)
Canada: “Small business” income tax rate decrease
Bill 16—that includes a provision to reduce the “small business” income tax rate in the Northwest Territories to 2% (from 4%)—received third reading on 12 March 2021.
The reduction in the small business income tax rate has an effective date of 1 January 2021.
There are also two provisions concerning individual (personal) income tax to harmonize the Northwest Territories tax regime with that of the Canadian federal system:
- “Split income” received by a senior citizen is factored into the determination of the territorial age credit (effective 1 January 2018).
- There is additional pension credit for veterans (effective 1 January 2015).
Read a March 2021 report prepared by the KPMG member firm in Canada
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