By Staff, The Daily Business Buzz
Finance Minister Graham Steele announced today, April 2, that Budget 2012 will lower the corporate income tax rate for small business half a percentage point.
© Ryan Taplin/Metro file
Finance Minister Graham Steele is optimistic that a larger-than-expected deficit will not derail plans to balance the budget in 2013.
[HALIFAX, NS] — The province is putting another $10 million back into the hands of small businesses, with the third tax rate reduction in as many years.
Finance Minister Graham Steele announced today, April 2, that Budget 2012 will lower the corporate income tax rate for small business half a percentage point to 3.5 per cent. The announcement took place at the Mahone Bay Trading Company's Halifax Historic Properties store.
"We took a tax rate that hadn't changed in 20 years, and lowered it three years in a row," said Steele. "Supporting entrepreneurs across Nova Scotia will help boost our economy and help the small business community continue to grow."
This reduction, which will go into effect on Jan. 1, 2013, will save small businesses $10 million in the 2013 tax year.
"Tax reductions will always be welcome news to small businesses, who want to maintain and create jobs for Nova Scotians," said Leanne Hachey, vice-president Atlantic for the Canadian Federation of Independent Business. "Those that work with the small business community know savings will be funneled right back to those businesses and in communities throughout the province."
The small business tax rate, which was five per cent in 2010, was lowered half a percentage point in both 2011 and 2012. The combined impact of the rate decreases will save small businesses an additional $30 million annually by 2013-14.
Small businesses are eligible for the reduced rate on the first $400,000 of taxable income, if they are a Canadian Controlled Private Corporation with taxable capital of $10 million or less. The province is encouraging unincorporated small business owners to take advantage of this lowered tax rate by incorporating their small businesses.