Tax Changes for Private Corporations

by in Canadian Government News and Updates
Tax Changes for Private Corporations
A Notice of Ways and Means Motion was published last October 24, 2017. Here are the highlights with regards to the tax changes for private corporations:
  1. Revision of Gross Up rate for non-eligible dividends: from 17% for 2017 to 16% for 2018 and 15% for 2019 and later years;
  2. Revision of the tax credit for non-eligible dividends: from 21-29ths of the gross-up in 2018 to 8/11ths in 2018 and 9-13ths in 2019 and later years;
  3. Increase the small business deduction: from 17.5% in 2017 to 18% for 2018 and to 19% for the 2019 and subsequent taxation years;
  4. Move forward on restricting income sprinkling effective 2018 and subsequent years. A revised draft legislation will be released soon;
  5. Limit the benefit of investing passively in private corporations including an annual threshold of $50,000 of passive income;
  6. Not move forward with the proposed measures to limit access to the Lifetime Capital Gains Exemption and the proposed measures relating to the conversion of income into capital gains;
  7. Ensure that farmers and fishers are not inappropriately denied the small business deduction on income from sales to a cooperative.
Rate this blog entry:
KD PROFESSIONAL is a group of interconnected companies offering a wide range of financial, accounting and tax services to individuals and businesses across Canada.

Through our experienced staff and strategic alliances, we provide exemplary service and solutions to maximize your cash flow, while preserving Wealth.


  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Tuesday, 11 December 2018

If you have a question about one of our products or services, please do not hesitate to contact us!
Please Enter Your Name
Please Enter A Valid Email
Please Enter Your Phone Number
Please select your preferred method of contact.
Refresh Please letters shown!

KD Professional Services
Monday-Friday 9am- 5pm
102, 221 18th Street SE
Calgary, AB, T2E 6J5


Read our Tweets