On February 21st, 2017, British Columbia Finance Minister
Michael de Jong announced the 2017 British Columbia Budget.
Summarized below are highlights of some of the measures contained
in the Budget.
Income Tax Measures
Small Business Corporate Income Tax Rate
The small business corporate income tax rate will decrease from
2.5% to 2% effective April 1, 2017 resulting in a combined federal
and British Columbia small business corporate income tax rate of
12.5%. The general British Columbia corporate income tax rate
remains at 11% resulting in a combined federal and British Columbia
general corporate income tax rate of 26%.
In order to maintain tax integration, the British Columbia
Dividend Tax Credit for Ineligible Dividends will decrease from 17%
to 15% (i.e. 2.18% of the taxable amount of the dividends),
effective for the 2017 and subsequent taxation years.
