April 24, 2012
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.
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 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.
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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.
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