Insurance Industry: Key Tax Rates And Updates (2012- 2013)

Recent Tax Changes: Selected Highlights

Federal changes

Federal general corporate income tax rate

The federal general corporate income tax rate has decreased:

1. The federal government's goal is to achieve combined 25% federal/provincial and federal/territorial rates.

Taxation of corporate groups

The government remains committed to exploring whether new rules for the taxation of corporate groups could improve the functioning of the corporate tax system. See our Tax memo "Taxation of Corporate Groups – Consultation Paper Released" at www.pwc.com/ca/taxmemo.

Eligible dividend designations

For dividends paid after March 28, 2012:

• a corporation can designate, at the time it pays a taxable dividend, any portion of the dividend to be an eligible dividend; and