February 21, 2017 admin

2017-2018 BC Budget Highlights

Proposed Highlights Include:

 Corporate Income Tax

  • Small business corporate income tax rate is reduced to 2% from 2.5% effective April 1, 2017. Combined federal/BC small business corporate income tax rate following reduction will be 12.5%.
  • Scientific research & experimental development tax credit is extended for five years to August 31, 2022.
  • B.C. mining flow-through share tax credit is extended to the end of 2017 (as previously announced). In addition, eligible expenditures expanded to include environmental studies and community consultations.
  • Eligible development expenditures for the Interactive Digital Media Tax Credit is expanded to include augmented reality and virtual reality products designed to entertain. In addition, corporations are no longer required to meet the principal business test of development of IDM products to claim tax credit.

 Personal Tax & Other

  • Dividend tax credit rate for ineligible dividends decreases from 17% to 15% following the decrease in the small business corporate income tax rate.
  • Education tax credit eliminated effective January 1, 2018. Unused education amounts carried forward from prior years can be claimed in 2018 and subsequent tax years.
  • Medical Services Plan premiums reduced by 50% for households with annual net incomes up to $120,000.
  • Provincial sales tax rate reduced by 50% to 3.5% on electricity starting October 1, 2017, gradually eliminated by April 2019.

If you have any questions or would like to speak with one of our tax professionals, call us at 604-687-0947.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.  No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.  Please contact our tax group if you have any questions on the impact of these proposed changes.