NOVA SCOTIA BUDGET HIGHLIGHTS

Transcription

1 Nova Scotia Budget Announcement

2 NOVA SCOTIA BUDGET HIGHLIGHTS On Thursday, April 27, 2017, the Honourable Randy Delorey, Minister of Finance and Treasury Board for Nova Scotia, tabled the province s 2017 Budget. Presented as Opportunities for Growth, Budget 2017 delivers no new tax increases and projects a surplus of $25.9 million for A. Corporate Tax Measures Corporate Tax Rates No new corporate income tax rate changes have been announced in this year s Budget. The current corporate income tax rates for 2017 are as follows: Small Business Corporations General Corporations Rate Threshold Non M&P M&P Federal 10.5% $500, % 15.0% Nova Scotia 3.0% $500, % 16.0% Small Business Threshold Effective January 1, 2017, the province will increase the small business threshold from $350,000 to $500,000. This matches the threshold in effect at the federal level as well as all provinces except Manitoba ($450,000). The threshold was reduced from $400,000 to $350,000 on January 1, 2014, to coincide with a small business rate decrease. The small business corporate income tax rate is 3 per cent and will be applied to the first $500,000 of active taxable income of Canadian Controlled Private Corporations (CCPCs) which have taxable capital of less than $10 million. The benefit of the small business rate is phased out for CCPCs with taxable capital between $10 million and $15 million. B. Personal Tax Measures Personal Tax Rates No new personal income tax rate changes have been announced in this year s Budget. The top marginal personal income tax rate for Nova Scotia is 21 per cent for The current top combined federal and Nova Scotia marginal rates for 2017 are as follows: Salary, business income, interest 54.00% Capital gains 27.00% Eligible dividends 41.58% Non-eligible dividends 46.97%

3 Enhancement of the Basic Personal Amount, Spousal Amount, Dependant Amount and Age Amount The Basic Personal Amount (BPA) is a non refundable credit that can be claimed by all tax filers. A tax filer cohabitating with their spouse or common-law partner can claim a Spousal Amount equal to the BPA. This amount is reduced by the income of the spouse or common-law partner on a dollar-for-dollar basis. If the Spousal Amount is claimed, the tax filer cannot use the Eligible Dependant Amount. The Eligible Dependant Amount is a non refundable credit for individuals who do not have a spouse or common law partner and are caring for children who have not reached the age of 18 in the taxation year. The province will increase the Basic Personal Amount (BPA), the Spousal Amount, and the Amount for an Eligible Dependant by $3,000, from $8,481 to $11,481, for the 2018 taxation year and subsequent taxation years. These credit amounts have been unchanged since 2011 and the increase represents a 35.4 per cent enhancement. The $3,000 increase will be available to all tax filers who have taxable income of less than $25,000. For tax filers who have taxable income between $25,000 and $75,000, the enhanced benefit will roll-off at the rate of 6 cents for every dollar of taxable income and will be fully phased out at $75,000 of taxable income. Tax filers who have more than $75,000 in taxable income will not receive any benefit from the enhanced BPA. The Age Amount is a non refundable credit provided to individuals over the age of 65 in the taxation year. The maximum Age Amount is currently $4,141 and it will be increased by 35.4 per cent to $5,606 for 2018 and subsequent taxation years. The increase is proportional to the increase in the BPA. Similarly, the maximum benefit will be available for tax filers with taxable income of less than $25,000 and will be phased out between taxable incomes of $25,000 and $75,000. C. Other Tax Measures Motive Fuel Tax Exemption for Mining and Quarrying Effective April 1, 2017, the province will provide an exemption from motive fuel tax and equipment used in the mining and quarrying sector. Currently motive fuel exemptions are available for such purposes as fishing, farming, and logging operations; commercial vessels and ferries; provincial, municipal, school board and public works vehicles; equipment used for firefighting; motive fuel purchased by Status Indians on a reserve; and locomotives.

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