Budget 2019: Business Income Tax Measures, Part 1

Budget 2019:  Business Income Tax Measures, Part 1
Last week, we looked at all the personal income tax measures that were included in Budget 2019. In this blog, we’ll focus on the business income tax measures.

Here are the business tax measures included in Budget 2019:

1. Support for Canadian Journalism: Budget 2019 proposes 3 new tax measures in support of Canadian journalism. These tax measures include allowing journalism organizations to register as qualified donees, introduction of a refundable labour tax credit for qualifying journalism organizations and a non-refundable tax credit for subscriptions to Canadian digital news.
2. Business investment in zero-emission vehicles: Budget 2019 proposes to provide a temporary enhanced first-year CCA (capital cost allowance) rate of 100% in respect of eligible zero-emission vehicles. Budget 2019 also proposes to amend the GST/HST to ensure that the treatment of expenses incurred in respect of zero-emission passenger vehicles under the GST/HST parellels the proposed income tax treatment of these vehicles.
3. Small Business Deduction – Farming and Fishing: Budget 2019 proposes to eliminate the requirement that sales be to a farming or fishing cooperative corporation in order to be excluded from specified corporate income. This tax measure will provide greater flexibility to farming and fishing businesses. Please note that the exclusion will apply to the income of a CCPC (Canadian-controlled private corporation) from sales of the farming products or fishing catches of its farming or fishing business to any arm’s length purchaser corporation. This measure will apply to taxation years that begin after March 21, 2016.

There are 3 more business income tax measures that we will look at on our next blog so please check back soon!

  1. Source: www.budget.gc.ca/2019 

Budget 2019: Business Income Tax Measures, Part 2
Budget 2019: Personal Income Tax Measures, Part 2

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