Major tax relief for small businesses in federal budget

The 2015 federal budget reduces the small business corporate tax rate from 11% to 9% over the next four years. CFIB has been leading the push for this measure, as total tax burden was identified as the top priority for 78% of Canada’s small businesses leading up to the budget.

How much will small businesses save with the tax cut?

  • Net yearly taxable income of $30,000: $1,500 in total savings over four years.
  • Net yearly taxable income of $500,000: $25,000 in total savings over four years.
  • To ensure business owners receive this benefit, these cuts will be guaranteed by law.


Additional measures in the budget advocated by CFIB:

  • Increasing the Lifetime Capital Gains Exemption for farmers and fishers to $1 million immediately; CFIB will push to expand this increased exemption to all businesses.
  • Significant reductions in credit card processing fees and new rules to ensure fairness in the payments industry.
  • Introducing balanced budget legislation that 82% of CFIB members support.
  • Accelerated Capital Cost Allowance (CCA) for manufacturers for the next 10 years.
  • Legislation to cut a regulation for every new one that is introduced (“1 for 1” rule).
  • Major changes at the Canada Revenue Agency, including less frequent tax remittances for new firms, a commitment to honour all written advice (including the CRA website) and a new CRA forum with CFIB.
  • A review of passive income rules that currently prevent owners of campgrounds and self-storage facilities from accessing the lower small business corporate tax rate.
  • Confirmation that small firms will save $550 million in lower Employment Insurance rates through the Small Business Job Credit before even larger premium cuts start in 2017.
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