In general, the SBD is calculated based on the least of three amounts — active business income earned in Canada, taxable income and the small business income threshold. (6) The 2016 federal budget announced that the small business income tax rate would remain at 10.5% after 2016.

Mar 22, 2016 – expected, a new Canada Child Benefit was introduced. There were no changes introduced to the capital gains inclusion rate or the stock options deduction. The budget keeps the small business tax rate at 10.5% on the first $500,000 of business income. Furthermore, the budget precludes the multiplication …

However, the 2016-17 federal budget has cancelled these scheduled reductions and announced that the smallbusiness tax rate will remain at 10.5% after 2016. The federal SBD is reduced if taxable capital employed in Canada exceeds $10 million in the preceding taxation year.

However, the 2016-17 federal budget has cancelled these scheduled reductions and announced that the smallbusiness tax rate will remain at 10.5% after 2016. The federal SBD is reduced if taxable capital employed in Canada exceeds $10 million in the preceding taxation year.

Jump to Business Income Tax MeasuresBudget 2016 proposes that the small business tax rate remain at 10.5% for 2016 and future years. This reverses the Conservative government's prior commitment to reduce the small business tax rate to 9% by 2019. Budget 2016 refers to this as a “deferral” of the rate …