Share with your friends

No Passive Income Phase-out for Ontario Small Business Limit

Ontario Passes Small Business Limit Bill

Bill includes tax measures announced in Ontario’s Fall Economic Update


Related content

Ontario Bill 57 received Royal Assent on December 6, 2018. This bill includes a number of tax measures announced at the province's Fall Economic Update on November 15, 2018, including corporate income tax measures to reflect that the small business limit for Ontario purposes will not be affected by federal measures to reduce the small business limit for Canadian-controlled private corporations and associated corporations that have passive income above a certain threshold.

The corporate income tax measures in Bill 57 are considered substantively enacted for IFRS and Accounting Standards for Private Enterprise (ASPE) purposes on November 15, 2018, which is when the bill received first reading in the provincial legislature (since Ontario has a majority government). The corporate income tax measures in Bill 57 are considered enacted for U.S. GAAP purposes on December 6, 2018, the date the bill received Royal Assent.

For more information, contact your KPMG adviser.

Information is current to December 11, 2018. 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

© 2020 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

Connect with us


Want to do business with KPMG?


loading image Request for proposal