Global

Details

  • Service: Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 7/15/2013

Canada - Tax rate increase for personal service business income 

July 15: Services provided through a corporation, if a personal services business, may lose a previously available tax deferral advantage because of a recent tax rate increase on personal services business income.

The tax rate change is already generally effective for tax years ending on 31 October 2012 and later. For example, for a taxpayer who has a 31 December tax year-end, this tax rate increase applies to the tax year that ends 31 December 2012.


Taxpayers need to evaluate the effect of this tax rate increase on their personal services business and decide what to do with the existing corporation.


Read a July 2013 report prepared by the KPMG member firm in Canada: Personal Services Business Tax Hike Now Law — Have You Made a New Plan?




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1801 K Street NW
Washington, DC 20006.

 

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