Finance Minister Announces Reduction in Small Business Tax
Published by the Department of Finance
Tuesday, March 29, 2011
Minister of Finance Graham Steele announced that in the upcoming budget the small business tax rate will be cut to four per cent, which is in line with the province’s jobsHere plan to grow the economy.
Quotes
“This tax rate hadn't changed in almost 20 years, and we have lowered it twice in the last two years. Entrepreneurs across this province can invest more money in their businesses and be more competitive, which helps boost our economy.
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Graham Steele, Minister of Finance
“Tax reductions keep revenue in our small businesses, which in turn can be used for investment in technology and people – this helps our productivity which is critical for the economic growth of this province.
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Valerie Payn, president of the Halifax Chamber of Commerce
“With the government having just declared 2011 the Year of the Entrepreneur, lowering the small business tax rate is not only the right thing to do, but it's the right time to do it.
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Leanne Hachey, vice-president Atlantic for the Canadian Federation of Independent Business
Quick Facts
- Beginning Jan. 1, 2012, the corporate income tax rate for small business will be reduced by 0.5 per cent, bringing the rate down to four per cent.
- Last year, 2010-11, the rate dropped from five per cent to 4.5 per cent.
- The reductions of the last two years represent an overall drop of 20 per cent from the 2009 small business income tax level of five per cent.
- Eligible small businesses can apply the new rate on the first $400,000 of taxable income.
- Mr. Steele will introduce the government's 2011-12 budget in the House of Assembly on Tuesday, April 5.
Learn More
Media Contact
- Patricia Jreige
- Department of Finance
- 902-424-0984
- Cell: 902-221-1632
- E-mail: jreigeph@gov.ns.ca
