In the recent provincial budget, the provincial corporate tax rate increased from 10% to 11%. This rate applies to all companies which earn over $500,000.
For small companies who earn less than $500,000, their provincial corporate tax rate has not changed from 2.5%. Combined with the federal corporate taxes, small companies pay a total income tax rate of 13.5%.
Young families received attention this spring when the British Columbia Early Childhood Tax Benefit was introduced in the provincial budget. Starting April of 2015, this benefit will be paid out as a monthly credit, similar to other child tax benefits.
Parents will receive $55 per month for each of their children who are younger than six years old.
Reflecting other child tax benefit programs, the new benefit will be income-based. Once a British Columbia family’s net income exceeds $100,000, the amount of the early childhood benefit will be reduced incrementally.
The Provincial government has just announced its plan to reduce the HST rate from 12% to 10%. This will be done in a two-step process cutting the provincial portion by 1% on July 1, 2012 and another 1% on July 1, 2014.
For more information click on the Ministry of Finance information bulletin:
British Columbians will be asked to make a decision this summer on whether to keep the HST or to go back to the PST/GST. The following independent report details the positive and negative of HST and is meant to help you make an informed decision.
Your decision may be further influenced by the Provincial government’s news release today to reduce the HST rate to 10%.