April 24, 2012
Highlights of the 2012 Newfoundland and Labrador Budget
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:
· 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.
KPMG returns to St.
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.
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