Small Business Tax Changes 2016

Small Business Tax changes for 2016:

  • The November Federal Budget proposed that small businesses would pay less tax in the future but the actual tax reductions didn’t happen. Eligible small business income will still be taxed at the same Federal rate of 10.5%.
  • Electric vehicle charging stations and energy storage properties now qualify for accelerated depreciation.
  • New rules clarify the tax treatment of emissions allowances for businesses with CO2 emissions.
  • Withholding tax rules were expanded on cross border interest, rent and royalty payments that involve multiple intermediaries.

Numerous other changes were made to the taxation of investments in the mutual fund, insurance and derivatives industries.

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