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Your B.C. Government

Tax Benefits for Small Businesses and Corporations

Your B.C. Government has cut corporate and small business tax rates to some of the lowest in Canada to attract investment that creates jobs, stability for communities.

What your B.C. Government is doing for tax benefits for small businesses and corporations:

  • In response to global economic challenges, your B.C. Government has lowered the small business corporate income tax rate from 4.5 to 2.5 per cent in 2008 – a 44 per cent reduction – for an estimated total savings of $401 million for small business. This is the second lowest rate in Canada.
  • Your B.C. Government intends to reduce the small business corporate income tax rate to zero by April 1, 2012.
  • Since 2002, your B.C. Government has increased the small business tax threshold by 150 per cent. Effective Jan. 1, 2010, the small business tax threshold will rise from $400,000 to $500,000, making B.C.’s the highest threshold in Canada and saving small businesses $20 million per year.
  • B.C.’s general corporate income tax rate has been reduced from 16.5 per cent to 11 per cent, with further reductions to 10.5 per cent planned for 2010 and to 10 per cent in 2011.
  • B.C.'s current corporate tax rate is among the lowest in North America, with a top marginal corporate income tax rate of 30.5 per cent. Planned corporate tax reductions over the next three years that will give B.C. a combined federal-provincial rate of 25 per cent, the lowest corporate income tax rate of the G7 countries, and 10 points lower than the U.S. federal rate by 2012.
  • KPMG recently found that of 35 major world cities, Vancouver ranked fourth best for general tax competitiveness – 24.8 per cent lower than the U.S. average.
  • In 2001, B.C. eliminated the corporation capital tax on non-financial corporations, and the tax will be phased out for financial institutions by 2010.
  • In 2001, PST was eliminated on production machinery and equipment.
  • For the first time in 14 years, commissions paid to businesses for collecting the provincial sales tax and the hotel room tax will increase; in fact, it will double. Doubling the commission will put $60 million into B.C. businesses over the next three years.
  • Your government has expanded the tax credit base for its venture capital programs to $30 million annually, including $7.5 million for British Columbia’s clean technology companies. B.C. businesses can now access up to $100 million of venture capital.
  • The Province will increase the Industrial Property Tax Credit to 60 per cent from 50 per cent in 2011. The 50 per cent Industrial Property Tax Credit was announced in October 2008 as part of the Premier's 10-point plan to address the economic crisis.
  • Your B.C. Government has removed more than 152,000 needless regulations since 2001, a reduction of over 42 per cent.
  • Your B.C. Government has introduced training tax credits for both employers and employees to provide incentives for people to enter and complete apprenticeship programs.
  •  Your B.C. Government has increased training tax credits for businesses that take on apprentices. Effective July 1, 2009, employers may claim up to $4,000 annually, double the previous $2,000, per eligible apprentice.
  • Your B.C. Government is expanding the Industry Training Authority and providing an additional 2,000 apprenticeship training spaces.
  • Economic summits held in Prince George and Vancouver in 2009 brought British Columbians together to identify opportunities to take advantage of the coming economic recovery.

For more information:
Taxes for businesses
Modernizing B.C.'s regulations
Information for tax professionals