This year, starting in January 2018, the small business tax rate was cut from 11% to 10% under the Federal Government. To further support the growth and success of hard-working small business owners, the small business tax rate will be further reduced to 9% starting January 1st 2019. This will save small businesses up to $7,500 per year.
“We are lowering the small business tax rate because we understand the contributions local businesses make to communities large and small, from coast to coast to coast,” said MP Sonia Sidhu, the Member of Parliament for Brampton South.
“Small businesses employ almost half of all Canadian workers and account for about 30 per cent of our GDP. They are the backbone of our economy”.
The change comes as part of the government’s follow through on their election promise and its commitment to supporting small businesses and creating a fairer tax system that works for everyone.
“We were elected in 2015 with a plan to support the middle class and people working hard to join it” further stated MP Sidhu.
“We have come a long way over the past three years and delivered real progress for people, including cutting taxes for people and businesses, creating the Canada Child Benefit, and enhancing the Canada Pension Plan”.