Ontario’s Minister of Finance announced a reduction in the small business tax rate to 3.5% (from 4.5%) effective for 2018 and increases the non-eligible dividend tax rate for individuals. In addition, the update introduces new apprentice training grants and incentives for hiring young workers, among other changes.
These corporate tax changes appear intended to help businesses offset the upcoming increase to the minimum wage that is expected to rise to $14.00* (from $11.60) on 1 January 2018 and to $15.00 on 1 January 2019.
Read a November 2017 report prepared by the KPMG member firm in Canada
*$ Canadian dollar
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