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
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.
References
Source of the article : Wikipedia
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