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Kamis, 09 November 2017

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Canada to Cut Tax Rate for Small Firms - WSJ
src: si.wsj.net

In Canada, the small business tax rate is the tax rate paid by a small business. As of 2016, the small business tax rate is 10.5%, which stands despite significant controversy surrounding the government's broken promise to reduce that rate to 9%.


Video Canada small business tax rate



Definitions

A small business in Canada is defined as a Canadian-based corporation with less than 100 employees and under $500,000 in annual income.

The general corporate tax rate is 28%. Small businesses are allowed to claim a "small business deduction" under the Income Tax Act; the deduction enumerated in that Act is deducted from the 28% general tax rate and means the net small business tax rate is as follows:

Maps Canada small business tax rate



Tax rate by year


Trudeau's Tax Plan Faces Resistance From Canadian Businesses - WSJ
src: si.wsj.net


Political controversy

Conservative government reductions

Reviews such as Canada's Global Markets Action Plan urged the federal government to better support small businesses by increasing the deduction limits for small businesses and lowering the effective tax rates. Under the government of Stephen Harper, the small business tax rate was reduced by 2%; by the end of their mandate they had plans to further reduce the rate to 9%, but those plans were cancelled when the Liberal Government produced its 2016 budget.


Income Tax Deductions for Canadian Small Businesses
src: fthmb.tqn.com


References

Source of the article : Wikipedia

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