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Comparison of Federal Budge on Corporate Tax Rates
Active Small Business
(with small business income limit increased to $400,000 as of Jan 1, 2007)
| 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | |
| Base Amount of Part 1 Tax | 38.00% | 38.00% | 38.00% | 38.00% | 38.00% | 38.00% | 38.00% |
| Federal Tax Abatement | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
| 28.00% | 28.00% | 28.00% | 28.00% | 28.00% | 28.00% | 28.00% | |
| Corporate Surtax - 4% | 1.12% | 1.12% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Small Business Deduction | -16.00% | -16.00% | -17.00% | -17.00% | -17.00% | -17.00% | -17.00% |
| Effective Federal Tax Rates | 13.12% | 13.12% | 11.00% | 11.00% | 11.00% | 11.00% | 11.00% |
| BC Tax on Small Business | 4.50% | 4.50% | 4.50%* | 3.50% | 3.50% | 3.50% | 3.50% |
| Federal and Provincial Tax | 17.62% | 17.62% | 15.50% | 14.50% | 14.50% | 14.50% | 14.50% |
General Active Business
| 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | |
| Base Amount of Part 1 Tax | 38.00% | 38.00% | 38.00% | 38.00% | 38.00% | 38.00% | 38.00% |
| Federal Tax Abatement | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
| 28.00% | 28.00% | 28.00% | 28.00% | 28.00% | 28.00% | 28.00% | |
| Corporate Surtax - 4% | 1.12% | 1.12% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| General Tax Reduction | -7.00% | -7.00% | -8.50% | -9.00% | -10.00% | -10.00% | -10.00% |
| Effective Federal Tax Rates | 22.12% | 22.12% | 19.50% | 19.00% | 18.00% | 18.00% | 18.00% |
| BC Tax on Large Business | 12.00% | 12.00% | 12.00%** | 11.00% | 11.00% | 11.00% | 11.00% |
| Federal and Provincial Tax | 34.12% | 34.12% | 31.50% | 30.00% | 29.50% | 29.50% | 29.50% |
* Effective July 1, 2008, B.C. corporate tax rate reduced to 3.5% for corporations qualifying for small business deduction.
** Effective July 1, 2008, B.C. corporate tax rate reduced to 11% for general active business.
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2002 - 2006 (c) Copyright Diana Mau Chartered Accountant. All rights reserved.
