TaxTips.ca - Newfoundland and Labrador 2009 Budget

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Atlantic Provinces -> Newfoundland & Labrador -> NL 2009 Budget

NL 2009 Budget - March 26, 2009

For complete budget details see the NL Budget 2009 website. For details of tax changes see their news release about the New Tax Measures.

Personal tax changes

Low-Income Tax Reduction

Changes are effective for 2009

Income thresholds to be increased

from $13,511 to $15,911 for individuals

from $21,825 to $26,625 for families

An individual with an income of $16,000 will save $544 annually

A family with income of $26,000 will save almost $800 annually

Dividend Tax Credit (DTC)

Effective for the 2009 tax year, the dividend tax credit rate on dividends eligible for the enhanced dividend tax credit will be increased from 6.65% of grossed-up dividends to 9.75%. This works out to an increase from 9.6425% of actual dividends to 14.1375%. This changes in 2010, because the NL Income Tax Act actually specifies the dividend tax credit as 31.42% of the Federal gross-up amount. See the NL dividend tax credit page for details of future rates.

Labour-Sponsored Venture Capital Tax Credit (LSVCC)

	Effective April 1, 1009
	provincial tax credit rate increased from 15% to 20%
	maximum annual contribution increased from $5,000 to $10,000

Corporate Income Tax

Effective January 1, 2009 the corporate income tax small business threshold will increase from $400,000 to $500,000.

Revised: November 03, 2010

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