Corporate Tax Measures
The following corporate tax measures were also announced:
- Effective January 1, 2007, the amount of active business income eligible for the small business deduction will be increased from $300,000 to $400,000.
- The small business tax rate will also be reduced from 12% to 11.5% effective January 1, 2008 and to 11% effective January 1, 2009.
- The general corporate tax rate will be reduced from 21% to 20.5% effective January 1, 2008, to 20% effective January 1, 2009 and 19% effective January 1, 2010.
The surtax, which has already been eliminated for small and medium sized corporations, will also be eliminated for large corporations effective January 1, 2008.
Click here to return to the 2006 Federal Budget Tax Changes index.
