Finance Minister Bill Morneau delivered the government’s 2017 federal budget on March 22, 2017. The budget expects a deficit of $23 billion for fiscal 2016-2017 and forecasts a deficit of $28.5 billion for 2017-2018. Find out what this means for businesses.
Finance Minister Bill Morneau delivered the government’s 2017 federal budget on March 22, 2017. The budget expects a deficit of $23 billion for fiscal 2016-2017 and forecasts a deficit of $28.5 billion for 2017-2018. Find out what this means for families.
BC Finance Minister Michael de Jong delivered the province’s 2017 budget on Feb. 21, 2017. The budget anticipates a surplus of $295 million for the current year, $244 million in 2018-2019 and $223 million in 2019-2020.
Corporate Income Tax Measures
Reduction in Corporate income Tax Rate from 2.5% to 2.0% effective April 1, 2017
|Corporate Income Tax Rates- As of January 1, 2017|
|British Columbia||Combined Federal & BC|
|*on first $500,000 of active business income **effective April 1, 2017|
Increase in the personal tax rate from 40.61% to 40.95% for ineligible dividends effective January 1, 2017.
|Personal Combined Federal/Provincial Top Marginal Rates|
|Interest and regular income||47.70%|
Medical Services Plan Premiums: Rate will remain at $75/month/adult. Effective Jan 1, 2018: 50% MSP premium reduction for households with annual net incomes up to $120,000.
Firefighter & Search & Rescue Volunteer Tax Credit: Non-refundable tax credit of up to $3,000 for 2017.
Back to School Tax Credit: Non-refundable tax credit of $250 per child (ages 5 to 17) for 2016 to 2018. Effective Jan 1, 2018, the education tax credit will be eliminated.
Electricity- Provincial Sales Tax Act: Effective Oct 1, 2017, the tax rate is reduced to 3.5% of the purchase price.
Property transfer tax: For first time home buyers to save property transfer tax on the purchase of their property the partial exemption has been increased to $500,000 from $475,000.
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Tel: (604) 428-4114
Clear Path Financial Planners
4603 Kingsway, Suite 210
Burnaby, BC V5G 4M4
Fax: (604) 436-3302
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About Clear Path Financial Planning
We believe in empowering our clients to participate in the creation and maintenance of their overall financial well being through proper education and ensuring an understanding of the possible outcomes involved in each decision. It always surprises us to learn that so many individuals are removed from their planning and rely on their advisers to recommend the best course of action. This tends to be the result of a lack of understanding of the proposed concept/situation on the part of the client or their financial team not spending time to ensure the client fully understands and appreciates the possible benefits/disadvantages of each proposal.