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2013 B.C. Budget Bill Receives Royal Assent 

Canadian Tax Adviser

 

July 30, 2013

 

Bill 2, which implements certain measures in British Columbia's 2013 budget including the increase in both personal and corporate tax rates, received Royal Assent on July 25, 2013. The provisions in Bill 2 are considered substantively enacted for purposes of IFRS and Accounting Standards for Private Enterprise (ASPE) as of June 27, 2013, when Bill 2 received first reading in the provincial legislature (as British Columbia has a majority government). Bill 2 is enacted for U.S. GAAP purposes on July 25, 2013, the date the bill received Royal Assent.

Background
Bill 2 contains the legislation to increase the provincial general corporate tax rate to 11% (from 10%), effective April 1, 2013. Bill 2 also contains the legislation to introduce the new temporary top personal income tax bracket for the 2014 and 2015 taxation years. The income threshold for the new top bracket is $150,000 in 2014, and taxable income in excess of this amount will be subject to a provincial income tax rate of 16.8%. Previously, the top tax bracket in British Columbia was 14.7%, therefore the highest marginal tax rate on interest and regular income increased to 45.8% (from 43.7%) as a result of the introduction of the new top bracket.

 

For details of the province's 2013 budget, see TaxNewsFlash-Canada 2013-24, "2013 British Columbia Budget Comes Back with Tax Increases Intact".

 

For more information, contact your KPMG adviser.

 

 

 

 

 

Information is current to July 30, 2013. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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