Ontario reduces taxes for small businessesChristian Fernsby ▼ | January 7, 2020
Ontario has fulfilled its promise to cut the small business Corporate Income Tax (CIT) rate 8.7 per cent by reducing the rate to 3.2 per cent effective January 1, 2020.
Business in Canada Rod Phillips, Minister of Finance
Topics: Ontario tax small businesses
"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," said Rod Phillips, Minister of Finance.
This tax cut will deliver up to $1,500 in annual savings to more than 275,000 businesses - from family-owned shops to innovative start-ups.
Overall, Ontario's small businesses are saving $2.3 billion in 2020 through government actions such as cancelling the cap-and-trade carbon tax, supporting Workplace Safety and Insurance Board premium reductions, providing Ontario income tax relief and other measures.
To date, the government has also taken over 100 actions to cut red tape for businesses. These and other expected measures would save businesses $400 million in compliance costs. ■