Provincial government providing tax breaks to small businesses
As of the start of this year, the Province has cut the small business Corporate Income Tax (CIT) rate by 8.7 per cent to 3.2 per cent.
“Ontario has tremendous opportunity and potential, and we are working to create the conditions for job creators to grow and succeed. An important part of our plan is to reduce the tax rate for small businesses, as they play a vital role in the economy,” Rod Phillips, Minister of Finance, said in a news release.
As a result of the tax cut, more than 275,000 businesses—from family-owned shops to innovative start-ups—across the province will save up to $1,500 per year.
These tax cuts are projected to provide $255 million in Ontario income tax relief to small businesses across the province in 2020.
Currently, 98 per cent of all businesses in the province are classified as small businesses—they provide approximately one-third of all private-sector employment, which is a little more than two million jobs.
“A lower small business tax rate is a welcome way to kick off the new decade,” Julie Kwiecinski, Director of Provincial Affairs for Ontario at the Canadian Federation of Independent Business, said in the same release.
“The move will help make doing business in Ontario more affordable, providing extra money for job creators to use where it’s most needed,” she continued.
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