March 26, 2013
Highlights of the 2013 Newfoundland Budget
Today Newfoundland and Labrador Finance Minister Jerome Kennedy delivered the province’s 2013 budget. The budget anticipates a deficit of $430.9 million in 2013, $563.8 million in 2014 and $650.5 million in 2015. The budget includes a sustainability plan that lays out the province’s fiscal management for the next 10 years, including a return to surplus by 2016.
The budget does not include any corporate or personal income tax rate changes or any other significant income tax measures. The budget introduces new fees and increases some existing fees, including those for quarry material, forestry permits and various fisheries and aquaculture activities.
Highlights of measures in the budget are noted below.
Corporate income tax rates
The budget did not introduce any new corporate income tax rate changes. As a result, Newfoundland and Labrador’s corporate income tax rates effective January 1, 2013 remain as follows:
Corporate Income Tax Rates – As of January 1, 2013
1. Newfoundland’s small business rate applies on the first $500,000 of active business income.
Film and video tax credit
The Film and Video Tax Credit limit will increase to a maximum of $4 million (from $3 million) for eligible projects of an associated corporate group.
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:
Fees and Tobacco Tax
The budget increases various fees and implements some new fees as well. These changes affect fees for the following items, among others:
· Online vehicle registration renewals
· Provincial historic sites
· Quarry material
· Ferry service
· Highway access permits
· Tender documents
· Forestry permits
· Tax clearance certificates
· Labour standards clearance certificates
· Various fisheries and aquaculture activities.
The tobacco tax will increase by 1.5 cents per cigarette, effective 12:01 am March 27, 2013.
We can help
Your KPMG adviser can help you assess the effect of the tax changes in this year’s Newfoundland and Labrador 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 Newfoundland and Labrador Ministry of Finance.
For details, contact:
KPMG Tax professionals in Newfoundland and Labrador
Senior Manager, Tax
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