• Service: Tax, Global Mobility Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 7/15/2014

Canada - Individual income tax rate increase in Ontario budget 

July 15:  Ontario’s newly re-elected Liberal government on 14 July 2014 reintroduced the 2014 Ontario budget.

The “July budget” (essentially the same as the budget originally presented in May 2014):

  • Increases individual (personal) income tax on taxable incomes above $150,000 (Canadian dollar)
  • Reintroduces the phase-out or elimination of the “small business deduction” for certain large Canadian-controlled private corporations (CCPCs) and a new Ontario Retirement Pension Plan

Ontario’s Bill 14 containing certain 2014 budget measures received first reading* on 14 July 2014—i.e., measures related to the “small business deduction,” aggressive tax transactions and the land transfer tax.

*Ontario has a majority government.

Read a July 2014 report prepared by the KPMG member firm in Canada: 2014 Ontario Budget Comes Back with Income Tax Increase Intact

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