Atlantic Provinces -> Newfoundland & Labrador -> NL 2010 Budget
Personal tax changes
Personal Income Tax Rate Reductions
This information is also available on the NL Department of Finance Personal Income Tax web page.
The Newfoundland & Labrador tax rate tables have been revised to reflect these changes, as well as the dividend tax credit change.
Age Amount Tax Credit
The 2010 age amount tax credit is increased from $3,681 to $5,000, effective July 1, 2010. This results in an average age amount of $4,340 applicable for tax year 2010.
Dividend Tax Credit (DTC)
Effective July 1, 2010, the dividend tax credit rate on dividends eligible for the enhanced dividend tax credit will be increased from 9.60%(2010 rate) of grossed-up dividends to 11%. This works out to an increase from 13.82% of actual dividends to 15.84%. The NL Income Tax Act is being revised to specify the dividend tax credit as 11% of the Federal grossed-up (taxable) dividend amount, so the 11% will remain the same when the Federal gross-up percentage changes. See the NL dividend tax credit page for details of future rates.
The 11% rate will apply to dividends received after June 30, 2010.
Corporate Income Tax
Effective April 1, 2010 the small business corporate income tax rate will be reduced from 5% to 4%.
Revised: September 14, 2021
Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved. See Reproduction of information from TaxTips.ca