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Highlights of the 2014 New Brunswick Budget 

Tax News Flash
Tax News Flash
Tax News Flash

Highlights of the 2014 New Brunswick Budget

February 4, 2014

No. 2014-05

 

Today New Brunswick Finance Minister Blaine Higgs delivered the province’s 2014 budget. The budget, which does not include any corporate or personal income tax rate changes, projects a deficit of $391 million in 2014-15 and a deficit of $262 million in 2015-16. In the budget, New Brunswick announces that it will enhance its Small Business Investor Tax Credit to allow corporations and trusts to be eligible for a 15% non-refundable corporate income tax credit on eligible investments up to $500,000, among other changes.

 

Highlights of tax measures announced in today’s budget are summarized below.

 

Business Tax Changes

 

Corporate income tax rates

 

The budget did not announce any changes to the corporate tax rate. As a result, New Brunswick’s corporate income tax rates effective January 1, 2014 remain as follows:

 

Corporate income tax rates

 

Small Business Investor Tax Credit

 

New Brunswick announces that, effective for the 2014 taxation year, it will enhance its Small Business Investor Tax Credit. Under these changes, corporations and trusts will be eligible for a 15% non-refundable corporate income tax credit on eligible investments up to $500,000. This will result in a tax credit of up to $75,000 for New Brunswick corporate and trust investors who invest in eligible small businesses in the province. This program is available to eligible corporations who must apply to the province first to be able to issue shares eligible for this tax credit. Prior to this budget amendment, the Small Business Investor Tax Credit was available only to individuals as a 30% non-refundable credit against their New Brunswick personal income tax up to $250,000.

 

This enhancement should be a welcome change for both small businesses and investors, as they have long been lobbying the government for easier access to raise capital.

 

Personal Tax

 

Personal income tax rates

 

No changes to New Brunswick’s income tax rate were announced in the budget. As a result, New Brunswick’s combined federal and provincial top marginal tax rates for 2014 and 2013 are as follows. Note that although the personal income tax rates did not change this year, they increased as of July 1, 2013 under the province’s 2013 budget.

 

Personal income tax rates

 

Other Measures

 

New Brunswick says it intends to invest more than $80 million over five years in research and innovation through the establishment of the New Brunswick Research and Innovation Council.

 

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We can help

 

Your KPMG adviser can help you assess the effect of the tax changes in this year’s New Brunswick budget on your personal finances or business affairs, and point out ways to take advantage of their benefits or ease their impact. We can also keep you abreast of the progress of these proposals as they make their way into law and help you bring any concerns you may have to the attention of the New Brunswick Department of Finance.

 

 KPMG Tax professionals in New Brunswick:

 

Luann Jones-Foster, CA
Partner, Tax
T: 506-856-6477
E: ljonesfoster@kpmg.ca

 

Todd MacIntosh, CA
Partner, Tax
T: 506-856-6472
E: tmacintosh@kpmg.ca

 


 

Information is current to February 4, 2014. 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.

 

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