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The following table shows the general and small business
corporate income tax rates federally and for each province and territory for
2012. The small business rates are the applicable rates after deducting
the small business deduction, which is
available to Canadian-controlled private
corporations (CCPCs). The small business rate is available on active
business income up to the amount of the Business Limit.
The federal general rate is net of the 10% general tax
reduction. Legislative proposals announced October 31, 2011 would disallow
this reduction for a personal services
business, for taxation years beginning after October 31, 2011.
2012 Corporate Income Tax Rates
|
| |
General
|
Small Business
|
Business Limit
|
| Federal (1) |
15% |
11% |
$500,000 |
| Alberta |
10% |
3% |
$500,000 |
| BC (3) |
10%
|
2.5% |
$500,000 |
| Manitoba |
12% |
0% |
$400,000 |
| New Brunswick (5) |
10% |
4.5% |
$500,000 |
| Newfoundland & Labrador |
14% |
4% |
$500,000 (2) |
| Nova Scotia (6) |
16% |
4% |
$400,000 |
| Northwest Territories |
11.5% |
4% |
$500,000 (2) |
| Nunavut |
12% |
4% |
$500,000 (2) |
| Ontario (4) |
11.5% |
4.5% |
$500,000 |
| Prince Edward Island |
16% |
1% |
$500,000 (2) |
| Québec |
11.9% |
8% |
$500,000 |
| Saskatchewan |
12% |
2% |
$500,000 |
| Yukon |
15% |
4% |
$500,000 |
- Federal general rates:
-
21% before January 1, 2008
-
19.5% effective January 1, 2008
-
19% effective January 1, 2009
- 18% effective January 1, 2010
- 16.5% effective January 1, 2011
- 15% effective January 1, 2012
- NL, NT, NU and PE use the federal small business limit.
- BC's 2009 Budget announced that the
general rate would be reduced from 11% to 10.5% January 1, 2010, and to 10% effective
January 1, 2011. The 2.5% small business rate was effective December 1,
2008. The province announced (Dec
29, 2010 news release) an intention to reduce the small business rate to
zero% by April 1, 2012.
In a May
25, 2011 news release, the BC government announced that if the HST
referendum resulted in the HST being kept in place, then the HST rate would
be reduced, the small business rate reduction would be deferred
indefinitely, and the general rate would be increased to 12% on January 1,
2012. The HST was defeated, but will still be in place until some time
in 2013. As a result, it appears that any corporate tax rate changes
are on hold for the present time.
-
Ontario 2009 budget
reduces general rate to
- 12% effective July 1, 2010
- 11.5% effective July 1, 2011
- 11% effective July 1, 2012 - deferred by 2012
Budget
- 10% effective July 1, 2013 - deferred by 2012
Budget
As per the Ontario
2012 Budget, Ontario is scheduled to return to a balanced budget in
2017-18, and at that time the general corporate tax rate reductions would
resume.
- The NB 2009 budget
reduced the general rate to 12% effective July 1, 2009. This rate will
be further reduced to:
- 11% effective July 1, 2010
- 10% effective July 1, 2011
The previously planned reduction to 8% effective July 1,
2012 has been eliminated by the NB 2011
budget.
The NB 2011 budget announced a reduction in the small
business corporate income tax rate, to 4.5% effective January 1, 2012, with
a plan to reduce the rate by 50% over a four-year term.
As per
the NS 2011 Budget, the small
business income tax rate was reduced from 4.5% to 4% effective January 1, 2012.
As per the NS 2012 Budget, the rate
will be reduced to 3.5% effective January 1, 2013.
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