Global

Details

  • Service: Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 8/2/2013

Canada - B.C. budget bill enacted; increased tax rates 

August 2: British Columbia legislation containing an increase in both individual (personal) and corporate tax rates received Royal Assent on 25 July 2013.

Thus, the provisions are considered substantively enacted for purposes of IFRS and Accounting Standards for Private Enterprise (ASPE) as of 27 June 2013, which is the date when the bill received a first reading in the provincial legislature (as British Columbia has a majority government).


The legislation is enacted for U.S. GAAP purposes on 25 July 2013—the date the bill received Royal Assent.

Tax rate increases

The legislation:


  • Increases the provincial general corporate tax rate to 11% (from 10%), effective 1 April 2013
  • Introduces a new temporary top individual income tax bracket for the 2014 and 2015 tax years, with a new top bracket of CAN $150,000 in 2014, with taxable income in excess of this amount subject to a provincial income tax rate of 16.8%

Therefore, the highest marginal tax rate on interest and regular income is increased to 45.8% (from 43.7%) as a result of the introduction of the new top bracket.


Read a July 2013 report prepared by the KPMG member firm in Canada: 2013 B.C. Budget Bill Receives Royal Assent




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