New Brunswick Bill 60 contains certain measures announced in the province's 2017 budget.
The bill received first reading on March 28, 2017. The measures in Bill 60 are considered to be substantively enacted for purposes of IFRS and Accounting Standards for Private Enterprise (ASPE) on March 28, 2017, the day it received first reading (as New Brunswick has a majority government).
Bill 60 adjusts the New Brunswick dividend tax credit rate for non-eligible dividends. As a result, the combined top marginal rate for non-eligible dividends for New Brunswick will be 46.25% for the 2017 taxation year.
Bill 60 reduces the New Brunswick small business tax rate to 3% (from 3.5%), effective April 1, 2017.
Dividend tax credit - non-eligible dividends
Bill 60 provides for a New Brunswick dividend tax credit for non-eligible dividends of 3.245% (from 3.5%) of the taxable amount of the dividend, effective January 1, 2017. This measure was not announced in New Brunswick's 2017 budget. As a result, the combined top marginal rate for non-eligible dividends for New Brunswick will be as follows:
For more information, contact your KPMG adviser.
Information is current to April 04, 2017. 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
© 2019 KPMG LLP, a Canada limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.