Canada - English

Highlights of the 2012 Newfoundland and Labrador Budget 



Highlights of the 2012 Newfoundland and Labrador Budget

April 24, 2012

No. 2012-20

 

Newfoundland and Labrador’s Finance Minister tabled the province’s 2012 budget on April 24, 2012. The budget forecasts a surplus of $776.4 million for 2011-12 and projects deficits of $258.4 million for 2012-13 and $432.9 million for 2013-14. The province expects to return to a surplus of $44.3 million for 2014-15. The budget does not contain any corporate or personal tax changes.

 

Business Tax Changes

 
Corporate income tax rates

The budget did not introduce any new corporate income tax rate changes. As a result, the province's corporate income tax rates effective January 1, 2012 remain as follows:


The budget announces that the province will invest approximately $91 million in continuing tax credits and incentives for businesses including the following credits and programs:

 

  • Small Business Tax Credit
  • Manufacturing and Processing Profits Tax Credit
  • Scientific Research and Experimental Development Tax Credit
  • Film and Video Tax Credit
  • Economic Diversification and Growth Enterprise Program
  • Direct Equity Tax Credit
  • Resort Property Investment Tax Credit.

 

The budget also pledges $9 million in new funding to increase apprenticeship training, support post-secondary institutions and students, and enhance workforce development.

 

Personal Tax Changes


Personal income tax rates


No changes to the personal income tax rates were announced. As a result, Newfoundland and Labrador's combined top marginal tax rates remain as follows:

 

 

The budget states that the province will continue existing tax initiatives, such as the Residential Energy Rebate, the supplementary Child Care Tax Credit and the Low Income Seniors' Benefit.

 

Download KPMG's new Tax Hub Canada app

KPMG's free Tax Hub Canada App for iPad and BlackBerry provides timely, convenient tax news and tax rates to help you respond to changes in tax rules and regulations. Download the app today.

 

KPMG returns to St. John's

 

KPMG has reopened its office in St. John's. Leading our team are Gail Hamilton and Kevin Sullivan, two former Partners who each bring a wealth of experience and a proven track record. KPMG's new presence in St. John's will help us better serve our existing clients, and create opportunities to add value for new ones. Find out more at www.kpmg.ca/stjohns.

 

Your KPMG adviser can help you assess the effects of any fiscal changes in this year's Newfoundland & Labrador budget on your personal finances or business affairs. We can also keep you abreast of the progress of these proposals as they make their way into law.

 

Information is current to April 24, 2012. The information contained in this TaxNewsFlash-Canada 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.


KPMG LLP, the audit, tax and advisory firm (kpmg.ca), a Canadian limited liability partnership established under the laws of Ontario, is the Canadian member firm of KPMG International Cooperative ("KPMG International"). KPMG International's member firms have 140,000 professionals, including more than 7,900 partners, in 146 countries.

 

The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss entity. Each KPMG firm is a legally distinct and separate entity, and describes itself as such.

 

 

KPMG's Canadian web site is located at http://www.kpmg.ca/

 


© 2012 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

 

The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International.