The release of the Federal budget on April 21, 2015 brought with it some new tax measures that may impact you as a business owner. If the budget passes, as expected, here are some of the key changes you can expect to see:
· Reduce the Federal small business tax rate from 11% to 9% by 2019, by a rate decrease of 0.5% each year starting on January 1, 2016.
· Eligibility for new employers with payroll withholdings of less than $1,000 in source deductions each month to remit on a quarterly basis (after 2015.)
· Increase the Lifetime Capital Gains Exemption to $1 million for owners of farm and fishing businesses.
· Capital cost allowance (CCA) for machinery and equipment acquired after 2015 and before 2026 for use in manufacturing or processing will continue at 50%, however on a declining balance basis, rather than on the straight-line basis.
· Expand the services offered through the Business Development Bank of Canada and Export Development Canada to help small and medium-sized businesses.
· Provide $14 million over two years to Futurpreneur Canada in support of young entrepreneurs.
In our next article we will discuss some of the budget items that will impact personal taxpayers.
Ryan Schulz, CPA, CA, of Omland Heal Chartered Accountants, provides accounting and tax advice to help people meet their financial objectives. Services include; financial statements, corporate taxes, personal taxes, business advising, corporate reorganizations and estate planning. Ryan specializes in integrating business and personal tax planning strategies for his clients.