New Brunswick Bill 32 has received the first reading of a tax legislation on 29th March 2016 that includes a reduction in the small business tax rates and adjustments to the dividend tax credit provisions. The following measures are in Bill 32:
- Reduction in the small business tax rate from 4% to 3.5% effective from 1 April 2016;
- Reduction of the income tax rate from 21% to 20.3% for individuals with taxable income over CAD150,000 and elimination of the top marginal individual income tax rate of 25.75%;
- Adjustment in the province’s dividend tax credit rate on non-eligible dividends as a result of the reduction in the small business tax rate;
- Announcement of a refundable provincial harmonized sales tax (HST) credit.
