19 Feb 2020 BC Budget – Tax Updates
(February 19, 2020) – The Minister of Finance, Carole James, delivered the BC Government’s 2020 Budget yesterday in Victoria. To help you navigate the business and personal tax updates and changes, we have summarized some of the highlights below.
No changes were made to corporate tax rates. The combined Federal and British Columbia corporate tax rate for the first $500,0000 of active business income remains at 11% for 2020 and years going forward. Income over $500,000 remains taxed at 27%.
The Budget extends the Training Tax Credit to 2022 (from 2019) and the Mine Allowance Credit to 2025 (from 2020).
Personal Tax Rates
The Budget introduces a new top marginal tax rate of 20.5% for income over $220,000 for the 2020 and subsequent tax years. As of January 1, 2020, the combined personal tax rate for income over $220,000 is:
Home Owner Grant
The Budget decreases the threshold for the phase out of the Home Owner Grant to $1.525 million (from $1.65 million) for the 2020 tax year. This was previously announced and is adjusted annually based on overall fluctuations in housing prices.
PST on Beverages
The Budget removes the current PST exemption on carbonated beverages that contain sugar, natural sweeteners, or artificial sweeteners as of July 1, 2020.
If you have any questions about how this impacts you or your business, please call us at 604.639.0909 or email email@example.com.