Victoria – Small-business owners in British Columbia will benefit from a cut to the small-business corporate income tax rate from 2.5% to 2%, retroactive to April 1, 2017.
The tax cut is part of the Budget Measures Implementation Act, 2017, which passed on Nov. 2, 2017. The reduction makes B.C.’s small-business corporate income tax rate the second lowest in Canada, tied with Alberta and Saskatchewan.
“Small business forms the backbone of our economy and we need to do all we can to support its continued growth,” said Jobs, Trade and Technology Minister Bruce Ralston. “That’s why we are lowering the small-business corporate income tax rate by 20%, so B.C.’s small-business owners can keep more of their hard-earned revenue and reinvest it back in their communities.”
Credit unions are also benefiting from the passage of the act, with the restoration of the tax benefit for credit unions, retroactive to Jan. 1, 2017. Credit unions will be taxed at lower rates so they have access to more of the credit union’s funds to re-invest into local economies and small businesses.
- B.C.’s small businesses generated 34% of provincial GDP in 2016, above the Canadian average of 31%.
- Small businesses were the source of 32% of all wages paid to workers in B.C. last year, the highest share of all provinces and above the Canadian average of less than 27%.
- Employment in B.C.’s small-business sector climbed 3.1% in 2016, the highest rate of growth in over a decade.
- The small-business corporate income tax rate generally applies to Canadian-controlled private corporations in B.C. on active business income less than $500,000 per year.
- Small businesses are vitally important to British Columbia, touching every sector of the economy and all regions of the province.
- The Province is establishing a Small Business Task Force to provide recommendations to government on ways to further strengthen the small-business sector in B.C.
- Government provides training assistance for employees and employers through the Canada-B.C. Job Grant and funds Small Business BC, which provides comprehensive services to help with business planning, marketing and human resources.
- Government also supports the One-Stop Business Registry, BizPaL and the Mobile Business Licence Program, which streamline permitting and licensing processes for small businesses.
To learn more about small business in B.C., visit: www2.gov.bc.ca/gov/content/employment-business/business/small-business
To read B.C.’s latest Small Business Profile for 2017, visit: www2.gov.bc.ca/assets/gov/employment-business-and-economic-development/business-management/small-business/sb_profile.pdf
To learn more about the Canadian Federation of Independent Business, visit: http://www.cfib-fcei.ca
To learn more about the BC Chamber of Commerce, visit: http://www.bcchamber.org/