HALIFAX – Small businesses in Nova Scotia will ring in the new year with a reduced tax rate.
The province's corporate income tax rate for small business will drop to 3.5 per cent, effective Tuesday. This was announced in the 2012-13 budget.
Over the last three years, the province's small business tax rate has been lowered from 5 per cent to 3.5 per cent. The impact of these three rate decreases will mean a total savings of $30 million for Nova Scotia small business by 2013-14, up to $6,000 per eligible corporation per year.
This tax reduction is in line with the province's jobsHere plan, designed to create good jobs and grow the economy.
Nova Scotia's small business corporate income tax rate applies to taxable income earned by eligible corporations, up to $400,000. Over 13,000 incorporated businesses are eligible for the small business tax rate.