On February 19th, Minister Mike de Jong tabled the province’s fiscal 2013-2014 budget stating “Today I am presenting what we promised to the people of British Columbia, and what they have worked hard to achieve… a balanced budget.”
The budget contains several tax measures affecting both individuals and corporations alike, including but not limited to…
A quicker enactment of the planned 1% increase in general Corporate tax rate, which had been planned for 2014 but will be enacted to be effective April 1, 2013 (same date as PST coming back). The Small Business tax rate is to remain unchanged at 2.5%. The general tax rate will increase from 10% to 11%.
Commencing January 1, 2014, the budget proposes a temporary 2-year increase of 2.1% for taxpayers earning $150,000 or more. The increase will result in an additional tax bracket whereby individuals earning more than $150,000 will have those earnings taxed provincially at 16.8% instead of the current 14.7%
Other changes include a BC Early Childhood Tax Benefit available in 2015. The credit will provide up to $660 a year to assist with childcare costs for children under 6 years old. Also the budget confirms that the Child Fitness Tax Credit and Children’s Art Credit will continue to be available to British Columbians. Furthermore, a 4% increase is planned for MSP premiums effective January 1, 2014, and also an increase to the tobacco tax of $2 per carton.
New this year is a one-time BC Training and Education Savings Grant of up to $1,200 which will be available for children once they enter elementary school and have met basic residency requirements.
Finally, there were some discussions regarding the re-implementation of PST, the confirmation of a 2% transition tax on new housing, and confirmation that carbon tax rates will remain capped.
If you would like more information on this topic, please contact a member of the Empire CPA team by filling out the contact form below.
Canadian and foreign tax laws are complex and have a tendency to change on a frequent basis. As such, the content published above is believed to be accurate as of the date of this post. Before implementing any tax planning, please seek professional advice from a qualified tax professional. Empire, Chartered Professional Accountants will not accept any liability for any tax ramifications that may result from acting based on the information contained above.
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