The 2021 federal budget does not propose any changes to the federal individual (personal) or corporate tax rates
Does not propose any changes to the federal individual (personal) or corporate tax rates
The 2021 federal budget—presented on 19 April 2021—does not propose any changes to the federal individual (personal) or corporate tax rates but would extend certain relief programs offered in response to the coronavirus (COVID-19) pandemic.
Other tax measures in the budget would impose or implement interest expense limitations on corporations, anti-hybrid rules, and a digital services tax.
The budget would extend until 25 September 2021:
The budget would also introduce a new Canada recovery hiring program
Among the tax measures in the federal budget are the following items:
In addition, the budget provides new incentives to support small business innovation and amounts for green investments and jobs. Further, the government announced a range of funding and new initiatives intended to foster Canadian innovation and growth.
Because Canada has a “minority government,” these measures will require the support of another political party before they can be pass into law.
Tax professionals have observed that the budget does not propose to:
In addition, Finance did not announce comprehensive tax reform.
Read an April 2021 report [PDF 362 KB] prepared by the KPMG member firm in Canada
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