Canada: Private company tax proposals | KPMG Global
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Canada: No tax increase on passive investment income below threshold

Canada: Private company tax proposals

The Finance Minister—as part of new changes to the private company tax proposals—announced on 18 October 2017 that there would be no tax increase on passive investment income below a $50,000* annual threshold.


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The government, however, confirmed that it will proceed with measures that target the deferral of tax benefits of passive investments within private corporations for income above this new threshold. Details of these proposed measures are expected to be released as part of the 2018 federal budget, including a technical description of the passive investment income rules. 


Read an October 2017 report prepared by the KPMG member firm in Canada

*$ = Canadian dollars

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