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British Columbia cuts small-business tax rate 20%

Staff Writer |
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.

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The tax cut is part of the Budget Measures Implementation Act, 2017, which passed on Novembr 2, 2017.

The reduction makes B.C.’s small-business corporate income tax rate the second lowest in Canada, tied with Alberta and Saskatchewan.

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.

Small businesses are a critical part of B.C.’s economy, providing stable jobs and adding to sustainable, long-term economic growth throughout the province.

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