Some corporations will realize an increase in taxes this year.
In British Columbia’s budget this year, the provincial corporate tax rate on taxable income over $500,000 was increased by one percentage point – from 10% to 11%.
Combined with the Canadian federal tax rate on these earnings, the total corporate tax rate on active income over $500,000 is now 26%.
The tax rate on active income earned under $500,000 remains the same, at a combined federal and provincial rate of 13.5%.