ON – Province to reduce small business tax rate in 2018

In the 2017 Economic and Fiscal Review issued on November 14, Ontario’s Minister of Finance announced that the provincial small business tax rate would be reduced, effective as of January 1, 2018, from 4.5% to 3.5%. That rate is paid by Ontario incorporated small businesses on their first $500,000 of active business income.

The Minister indicated that the rate cut is intended to help offset the increased costs which will be incurred by small businesses when the provincial minimum wage is increased to $14 per hour, also effective January 1, 2018.

A summary of the business tax measures which were announced in the Update can be found at https://www.fin.gov.on.ca/en/budget/fallstatement/2017/ch5a.html.

The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.

Posted: Friday, June 8th, 2018 | Categories: Tax Alerts.

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