On September 11, 2017, the government announced proposed changes to the provincial tax laws. Some of these changes confirm changes previously announced on February 21, 2017. These changes are subject to the approval of the legislature.
Please have a look at some of the new proposals:
Corporate Income Tax Measures
- Effective January 1, 2018, the general corporate income tax rates will go up from 11 per cent to 12 per cent.
Personal Income Tax Measures
- Individual Tax rate increase. The NDP is fulfilling a campaign promise to increase the individual income tax rate for the top two per cent of earners. The rate for those making over $150,000 of taxable income will be going up from 14.7 per cent to 16.8 per cent.
Medical Services Plan Premiums
- Effective Jan 1, 2018: 50% MSP premium reduction for households with annual net incomes up to $120,000.
Firefighter & Search & Rescue Volunteer Tax Credit
- Introduce a new- non refundable volunteer firefighter and search and rescue volunteer tax credit.
Electricity- Provincial Sales Tax Act
- Phase out provincial sales tax on taxable electricity.
Property transfer tax
- In order for first -time home buyers to save on Property Transfer Tax (PTT) on the purchase of their property the partial exemption has been increased to $500,000 from $475,000.
To discuss how any of these changes may affect you, please don’t hesitate to contact us.