The B.C. Government released the 2019 Budget on February 19, 2019. There were no personal or corporate tax rate changes in the Budget, but the Budget did contain enhancements to some tax credits and provided some clarification on new measures like the BC Employer Health Tax and the Speculation and Vacancy Tax.
No corporate tax rates changes were announced in the 2019 B.C. Budget.
The corporate tax rates for 2018 and 2019 are as follows:
|General corporate tax rate||Small
|General corporate tax rate|
|Combined Federal & B.C.||12.00%||27.00%||11.00%||27.00%|
No personal tax rates changes were announced in the 2019 B.C. Budget.
The combined federal and B.C. top marginal tax rates for 2018 and 2019 are as follows:
|Ordinary income, interest income||49.80%||49.80%|
The new mining allowance is extended for one year to the end of 2020.
The budget proposes to make permanent:
The budget proposes to extend the farmers’ food donation tax credit by one year to the end of 2020. This credit available to individuals and corporations that carry on the business of farming and donate a qualifying agricultural product to a registered charity that provides food to those in need or helps to operate a school meal program. The credit is 25% of the fair market value of the qualifying agricultural product and must be claimed in the same year as the charitable donation tax credit is claimed for the particular donation.
The budget proposes to extend the training tax credit for one year to the end of 2019. The training tax credit provides refundable income tax credits for employers who employ apprentices enrolled in apprenticeship programs administered through the Industry Training Authority.
Effective for 2015 and subsequent years, the pension tax credit is expanded to apply to retirement income security benefits paid to veterans.
The budget proposes to enhance the small business venture tax credit program as follows:
Effective on royal assent, when a principal uses an agent to make a sale or lease, or when a billing agent is used to collect payments, the principal and agent can jointly designate a single party to be responsible for the tax collection, reporting and remittance obligations. Where sales are made by auction, an auctioneer acting as agent is automatically designated as the party responsible for collecting, reporting and remitting tax unless the parties jointly elect to assign the obligations to the principal.
The 2019 Budget will implement the 2018 Budget proposal eliminate Medical Service Plan (MSP) premiums effective January 1, 2020.
The MSP premiums will be replaced with an employer health tax which comes into effect on January 1, 2019, with the following rate structure:
Effective April 1, 2019, income and disability assistance rates will increase by $50 per month.
The budget proposes to replace the current Early Childhood Tax Benefit (“ECTB”) with a new B.C. Child Opportunity Benefit effective October 1, 2020 for parents with children under the age of 18.
The maximum annual benefits for families with a family net income that is less than $80,000 are:
The benefit is reduced when family net income exceeds $25,000 and begins to be phased out if family net income exceeds $80,000. The $25,000 and $80,000 threshold amounts will be indexed to inflation in future years.
Parents will be eligible for the B.C. Child Opportunity Benefit if the child is registered for the Federally-administered Canada Child Benefit program.
As of February 19, 2019, interest will no longer accrue on new and existing student loans provided through the British Columbia Student Loan Program.
Effective retroactive to November 27, 2018, the SVT is amended to clarify that:
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The material contained in this and other newsletters is not intended to be advice on any particular matter. Readers are cautioned not to act on the basis of any matter contained in the Business Reports without first considering appropriate professional advice specific to their situation. We would be pleased to provide further information and address any questions that our readers may have.News