Under the provisions of the 2015 federal budget and the 2015 provincial budgets, changes to the federal and provincial corporate tax rates for active business income earned by a Canadian-controlled private corporation (CCPC) which is eligible for the small business deduction have been enacted from December 31, 2015. The federal corporate tax rate was 11% for 2014 and 2015. The rate will be 10.5% on 2016, 10% on 2017, 9.5% on 2018 and 9% on 2019. All the sub-national CIT rates during those years will remain unchanged except for the rate in New Brunswick. The rate for New Brunswick was 4.5% and will change to 4% from 2015 to 2019. Newfoundland and Labrador’s small business tax rate decreased to 3%, effective from July 1, 2014.
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