Canada: Status of 2021 budget bill and tax measures (Prince Edward Island)
Tax measures as introduced in the province's 2021 budget
Prince Edward Island
Prince Edward Island's budget implementation bill received first reading on 26 October 2021.
The implementation bill (Bill 37) includes tax measures as introduced in the province's 2021 budget—including a decrease in the small business corporate income tax rate to 1% (from 2%) effective 1 January 2022.
Bill 37 also includes individual (personal) tax measures as announced in the province's 2021 budget, and these would:
- Increase the basic personal income tax exemption amount to $11,250* (from $10,500), effective 1 January 2022
- Increase the low-income threshold to $20,000 (from $19,000), effective 1 January 2022
In addition, the bill includes a proposed decrease to the provincial non-eligible dividend tax credit to 1.30% (from 1.96%), effective 1 January 2022. As a result, the combined top marginal rate on non-eligible dividends for Prince Edward Island residents in 2022 would increase to 47.04% (from 46.22%).
Read a November 2021 report prepared by the KPMG member firm in Canada
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