Canada: Proposal for 9% small business tax rate by 2019 | KPMG Global
Share with your friends

Canada: Proposal for 9% small business tax rate by 2019

Canada: Proposal for 9% small business tax rate by 2019

The small business tax rate would decrease to 9% (from 10.5%) by 2019 as part of new changes under the private company tax proposals.


Related content

The small business tax rate reduction would be phased in—reduced to 10% effective 1 January 2018 and to 9% effective 1 January 2019. 

The government said it has planned additional announcements to provide further details of changes that it intends to make in response to Finance’s recent public consultation on these proposals. While the government stated that it is committed to its proposed private company tax measures to address tax planning involving income sprinkling effective 1 January 2018, it is cancelling changes to limit access to the Lifetime Capital Gains Exemption (LCGE). The government also indicated that it will address certain issues in its passive income proposals.


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

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor 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 on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal