The 2016 federal budget will be tabled in less than a month and everyone’s wondering what tax measures can be expected.
Since the Liberal party’s win in October, the government has implemented many of the tax measures that were included in their election platform, as well as some new measures such as …
- a 4% increase in the top federal rate of tax (from 29% to 33%) for taxable income over $200,000;
- a reduction in the second federal tax bracket rate from 22% to 20.5%;
- a reduction in the annual Tax-Free Savings Account (TFSA) contribution limit from $10,000 to $5,500; and
- some unexpected changes to several tax measures affecting Canadian-controlled private corporations (CCPCs) and other private corporations.
Since proposed measures often take effect on budget day, Grant Thornton advises the best course of action is to “address all tax-sensitive transactions before that day.”
So what’s in store for active versus passive incomes, employers and EI premiums? View a full chart summarizing possible tax measures you can expect.
H/T Grant Thornton
