Quebec announces tax relief measures to try and support province’s SMEs
by CM Staff
Budget 2022 proposes to raise the capital threshold for the lower small business tax rate of 9 percent from $15 million to $50 million before the 15 percent tax rate kicks in.
QUÉBEC CITY — On Apr. 12, the Minister of Environment and Climate Change, Steven Guilbeault, highlighted new tax relief measures in Budget 2022 that will try and help small and medium-sized businesses throughout the province and the entire country to grow and re-invest in their own success. Minister Guilbeault made the announcement at the Grand Marché de Québec, home to dozens of small and medium-sized Quebec businesses.
Budget 2022 proposes to raise the capital threshold for the lower small business tax rate of 9 percent from $15 million to $50 million before the 15 percent tax rate kicks in. This change would allow more medium-sized Canadian businesses to benefit from the small business deduction. It would also increase the amount of qualifying active business income that can be eligible for the deduction.
This will deliver an estimated $660 million in tax savings Canada-wide over the 2022–2023 to 2026–2027 period that can be reinvested towards growing and creating jobs.
Budget 2022 will make it easier for Canadian businesses to innovate and become global leaders in the industries that will grow our economy and create new jobs.
“Quebec’s small and medium-sized businesses are the backbone of our economy. Budget 2022 is investing in people and businesses, in the green transition, and in innovation and productivity. By expanding the lower tax rate for small and medium-sized businesses, we are helping to create a stronger Canada—now and for decades to come.” said Steven Guilbeault, Minister of Environment and Climate Change.