B.C. Budget Announcement - 2019 B.C. BUDGET ANNOUNCEMENT - 2019 B.C. BUDGET HIGHLIGHTS On Tuesday, February 19, 2019, B.C. Minister of Finance Carole James presented the province’s 2019 budget. Below are highlights of the tax measures included in the 2019 B.C. budget. A. Corporate Tax Measures Corporate Tax Rates No new corporate income tax rate changes were announced in this year’s budget. The current corporate income tax rates for 2019 are outlined below: Small Business Corporations General Corporations Rate Threshold Non-M&P M&P Federal 9.0% $500,000 15.0% 15.0% British Columbia 2.0% $500,000 12.0% 12.0% Shipbuilding and Ship Repair Tax Credit Extended The shipbuilding and ship repair tax credit is extended by three years to the end of 2022. Training Tax Credits for Employers Extended The training tax credits are extended to the end of 2019. B. Personal Tax Measures Personal Tax Rates No new personal income tax rate changes have been announced in this year’s budget. The top marginal personal income tax rate for B.C. is 16.80% for 2019. The current top combined federal and B.C. marginal rates for 2019 are outlined below: Salary, business income, interest 49.80% Capital gains 24.90% Eligible dividends 31.44% Non-eligible dividends 44.64% Child Opportunity Benefit Introduced Starting on October 1, 2020, a new BC Child Opportunity Benefit will be combined with the existing early childhood tax benefit into a single new benefit. The new refundable tax credit will apply to children under the age of 18, whereas the previous benefit applied to children under the age of 6. The maximum benefit is $1,600 for the first child, $1,000 for a second child and $800 for each subsequent child under the age of 18. The benefit will be reduced by 4% of family net income over $25,000 until the benefit is equivalent to $700 for the first child, $680 for the second child and $660 for each subsequent child. The new benefit is further reduced at a rate of 4% of family net income that is over $80,000. Both net income thresholds will be indexed to inflation. B.C. BUDGET ANNOUNCEMENT - 2019 Parents who are already registered for the early childhood tax benefit or the Canada Child Benefit before September 30, 2020 will automatically be registered to receive the BC Child Opportunity Benefit. Parents not registered for either program will need to apply to the Canada Revenue Agency for the Canada Child Benefit in order to receive the new benefit. Parents of newborns will automatically be registered for the new benefit if, on the newborn’s birth certificate application for the BC Vital Statistics Agency, the parents consent to share information with the Canada Revenue Agency. Climate Action Tax Credit Enhanced The maximum annual climate action tax credit will be increased as outlined below: Per Adult Per Child July 1, 2019 $154.50 $45.50 July 1, 2020 $174.00 $51.00 July 1, 2021 $193.50 $56.50 Single-parent families will continue to receive the adult amount for the first child in the family. Training Tax Credits for Apprentices Extended The training tax credits are extended to the end of 2019. Farmers’ Food Donation Tax Credit Extended The Farmers’ Food Donation Tax Credit is being extended to the end of 2020. Mining Flow-Through Share Tax Credit Made Permanent As recently announced, the mining flow-through share tax credit is made permanent, effective January 1, 2019. Mining Exploration Tax Credit Made Permanent As recently announced, the mining exploration tax credit is made permanent, effective on royal assent. Pension Tax Credit Expanded Effective for 2015 and subsequent tax years, the pension tax credit will also apply in respect of certain retirement income security benefits paid to veterans. Calculation of Tax on Split Income Adjusted Effective for 2018 and subsequent tax years, the disability tax credit can be applied in calculating tax on split income. Calculation of Medical Expense Tax Credit Adjusted Effective for 2018 and subsequent tax years, split income can be included in the income threshold for calculating the medical expense tax credit. B.C. BUDGET ANNOUNCEMENT - 2019 C. Indirect Tax Measures Provincial Sales Tax Act Effective on royal assent, the Provincial Sales Tax Act is amended to authorize a designation to streamline tax collection, reporting and remittance requirements for sales or leases involving agency. Motor Fuel Tax Increase Effective July 1, 2019, the Motor Fuel Tax Act is amended to enable the TransLink service region to increase its motor fuel tax rates up to 1.5 cents per litre on clear gasoline and clear diesel. This change will increase the current rate from 17 cents per litre to a maximum of 18.5 cents per litre. D. Other Tax Measures Small Business Venture Capital Tax Credit Program Enhanced Budget 2019 introduces several changes to the small business venture capital tax credit program; • Effective for 2019 and subsequent tax years, the annual tax credit limit that an individual can claim for investments made after February 19, 2019, is increased to $120,000 from $60,000. • Effective February 20, 2019, • The maximum amount that eligible business corporations can raise through the tax credit program is increased to $10 million from $5 million; • Advanced commercialization is added as an eligible business activity (limited to businesses outside the Metro Vancouver Regional District and Capital Regional District); • Eligible small businesses and eligible business corporations can engage in activities related to scaling up their businesses after two years in the tax credit program; • Companies are eligible for a reduction in the amount they are required to reimburse the government if they exit the program after two years, instead of three years, and • Share transfers are permitted are permitted to a TFSA (Tax-Free Savings Account) and equity purchases within a TFSA are eligible for tax credits. • Effective March 2, 2019, investments in convertible equity issued by an eligible business corporation can qualify for a tax credit. New Mine Allowance Extended The new mine allowance is extended for one year to the end of 2020. Medical Services Plan (MSP) Premiums Eliminated As announced in Budget 2018, MSP premiums will be eliminated effective January 1, 2020. This follows the 50% reduction in premiums effective January 1, 2019. The new Employer Heath Tax took effect January 1, 2019. B.C. BUDGET ANNOUNCEMENT - 2019 ABOUT MNP MNP is a leading national accounting, tax and business consulting firm in Canada. We proudly serve and respond to the needs of our clients in the public, private and not-for-profit sectors. Through partner-led engagements, we provide a collaborative, cost-effective approach to doing business and personalized strategies to help organizations succeed across the country and around the world. B.C. Region Contacts LOWER MAINLAND Am Lidder 778.571.3535 Keith Vincent 778.571.3502 Ken Robinson 604.542.6710 David Cender 604.542.6716 Nancy King 604.542.7606 Paul Vivian 604.542.6712 Ryan Hoag 604.637.1502 Sandy Adachi 604.542.6724 Sidhartha Rao 778.729.0574 FRASER VALLEY Christopher Tilbury 604.870.6910 Gerard Roddis 604.870.6908 FRASER VALLEY Michael Ellenwood 604.870.7412 Michael Murphy 604.870.7446 David Turchen 403.298.8476 Sunney Badwal 604.870.7401 OKANAGAN VALLEY Brian Posthumus 250.979.1736 Heather Weber 250.979.2575 Derek Johnson 250.979.2573 Marty Clement 250.979.1742 PEACE Kim Drever 780.832.4287 Tracy Leishman 780.832.4294 Heather Hilhorst 780.832.4284 VANCOUVER ISLAND James Kungel 250.734.4303 Mike Hughes 250.734.4301 Mindy Wight 250.596.8316 VANCOUVER Kevin Wong 604.637.1546 Angela Chang 778.374.2121 Katri Ulmonen 604.637.1507 Dennis Werkman 604.637.1517 Maggie Chan 604.637.1519 Jacqueline Fehr 604.685.8408 Terry Trotic 604.685.8408 Visit us at MNPtax.ca Praxity AISBL is a global alliance of independent firms. Organised as an international not-for-profit entity under Belgium law, Praxity has its executive office in Epsom. Praxity – Global Alliance Limited is a not-for-profit company registered in England and Wales, limited by guarantee, and has its registered office in England. As an Alliance, Praxity does not practice the profession of public accountancy or provide audit, tax, consulting or other professional services of any type to third parties. The Alliance does not constitute a joint venture, partnership or network between participating firms. Because the Alliance firms are independent, Praxity does not guarantee the services or the quality of services provided by participating firms. Next >

NOTE: This publication is pending deletion. The account which was used to upload this publication needs to be renewed in order for this publication to stay online.