Canada Tax Sumury 2012

This booklet is intended to provide useful information to assist businesses in Canada taxation and new harmonized sales tax
(HST) in British Columbia, and does not replace federal or provincial legislation and accompanying regulations. It is strictly intended for reference purposes. As it may not completely address your particular operation, you may wish to consult the appropriate legislation or contact: Canada Revenue Agency at 1-800-959-5525 or www.cra-arc.gc.ca B.C. Ministry of Finance at 1-877-388-4440 or www.gov.bc.ca/fin/
Canada at a glance
Units National currency Index National currency Current international dollar Percent of GDP Percent of GDP Index Percent change Percent change Percent change Percent of GDP Percent of GDP Percent of GDP Percent of GDP Percent of GDP Units Billions Scale Billions 2000 1,100.52 97.825 35,127.84 888.552 20.23 23.623 95.383 8.172 8.645 9.207 43.533 40.588 46.227 82.127 2.719 2004 1,211.24 106.577 40,466.77 1,065.76 20.723 23.036 104.633 16.342 16.826 13.285 40.589 39.726 35.213 72.601 2.311 2007 1,311.26 116.65 46,516.19 1,263.63 23.241 24.077 111.45 11.852 11.452 7.032 40.741 39.158 22.917 66.518 0.835 2008 1,320.29 121.444 48,204.16 1,300.55 23.238 23.569 114.108 2.143 1.964 -4.629 39.661 39.535 22.306 71.114 0.329 2010 1,324.99 122.613 47,699.29 1,334.14 22.204 19.072 116.475 25.541 26.439 18.649 38.261 43.815 32.224 83.953 -3.131 2011 1,352.56 126.287 49,676.46 1,391.11 23.25 19.916 119.858 13.394 13.698 9.563 38.037 42.304 34.916 84.117 -3.334 2012 1,378.33 128.741 51,187.92 1,432.61 24.011 20.196 122.338 4.507 4.445 3.677 38.683 41.876 36.802 84.163 -3.814 2013 1,412.87 131.506 53,169.99 1,477.94 24.17 20.655 124.78 3.674 3.845 4.759 39.532 41.441 37.056 82.287 -3.515 2014 1,447.58 134.295 55,226.78 1,527.17 24.227 21.042 127.26 3.707 4.083 4.959 39.999 41.047 36.465 79.694 -3.185 2015 1,482.15 137.104 57,207.63 1,582.35 24.177 21.596 129.821 3.544 3.976 5.084 40.604 40.808 35.088 76.444 -2.58
Welcome to the City of Vancouver

Bordered by the Coast Mountain Range and the Pacific Ocean, Vancouver is recognized as one of the world's most livable cities. Archaeological evidence shows that the Coast Salish people had settled the Vancouver area by 500 BC. The City of Vancouver is renowned for its innovative programs in the areas of sustainability, accessibility and inclusivity. In 2010, Vancouver will host the world at the 2010 Olympic and Paralympics Winter Games.
Facts about Vancouver

Population/ Climate Vancouver is the eighth largest city in Canada with a population of 578,000 (2006 census) and has one of the mildest climates in Canada with temperatures averaging around 3 degrees Celsius in January and 18 degrees Celsius in July. It covers 114.7 sq km (44.3 sq miles), and is part of Metro Vancouver, the third largest metropolitan area in Canada, with a population of 2.1 million (2006 census).
Business/ Economy
Vancouver has Canada's largest and most diversified port, trading $75 billion in goods annually. It is home to a variety of different industries, including the mining, forest, biotech, film and software industries.
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History
Archaeological evidence shows that the Coast Salish people had settled the Vancouver area by 500 BC. In the 1870s, Vancouver was founded as a sawmill settlement called Granville. And in 1886, the city was incorporated and renamed Vancouver after Captain George Vancouver, a British naval captain who explored the area in 1792.
Source: http://vancouver.ca/aboutvan.htm
Canada at a Glance
Population Table:
1995 Year Canada Newfoundland and Labrador Prince Edward Island Nova Scotia New Brunswick Quebec Ontario Manitoba Saskatchewan Alberta British Columbia Yukon Northwest Territories Nunavut Source: Statistics Canada, CANSIM table 051-0005. 29,302,311 567,397 134,415 928,120 750,943 7,219,219 10,950,119 1,129,150 1,014,187 2,734,519 3,777,390 30,442 41,432 24,978 2005 number 32,245,209 514,363 138,055 937,941 747,960 7,581,911 12,528,480 1,178,301 993,579 3,322,200 4,196,788 31,904 43,399 30,328 34,605,346 511,272 146,152 946,378 755,810 8,002,098 13,422,912 1,254,658 1,063,535 3,798,791 4,592,034 34,891 43,485 33,330 34,605,346 511,272 146,152 946,378 755,810 8,002,098 13,422,912 1,254,658 1,063,535 3,798,791 4,592,034 34,891 43,485 33,330 2010 2011
Canadian federal marginal tax rates of taxable income 1998-2012

$0 - $10,527
2012
$10,527 - $42,707 %15

$10,527 - $41,544 %15 $10,382 - $40,970 %15 $10,321 - $40,726 15% $9,601 - $37,885 15% $9,600 - $37,178 15% $8,839 - $36,378 15.25% $8,648 - $35,595 15% $8,012 - $35,000 16% $7,756 - $32,183 16% $7,634 - $31,677 16% $7,412 - $30,754 16% $7,231 - $30,004 17% $6,794 - $29,590 17% $6,794 - $29,590 17%
$42,707- $85,414 %22

$41,544 - $83,088 %22 $40,970 - $81,941 %22 $40,727 - $81,452 22% $37,886 - $75,769 22% $37,178 - $74,357 22% $36,378 - $72,756 22% $35,595 - $71,190 22% $35,000 - $70,000 22% $32,183 - $64,368 22% $31,677 - $63,354 22% $30,754 - $61,509 22% $30,004 - $60,009 25% $29,590 - $59,180 26% $29,590 - $59,180 26%
$85,414-132,406 $128,800 %22

$81,941 $128,800 %22 $81,941 $127,021 %22 $81,453 - $126,264 26% $75,770 - $123,184 26% $74,357 - $120,887 26% $72,756 - $118,285 26% $71,190 - $115,739 26% $70,000 - $113,804 26% $64,368 - $104,648 26% $63,354 - $103,000 26% $61,509 - $100,000 26% over $60,009 29% over $59,180 29% over $59,180 29%
over $132,406 %29

over $128,800 %29 over $127,021 %29 over $126,264 29% over $123,184 29% over $120,887 29% over $118,285 29% over $115,739 29% over $113,804 29% over $104,648 29% over $103,000 29% over $100,000 29%
0%
2011 $0 - $10,527 0% $0 - $10,382 2010 2009 0% $0 - $10,320 0% 2008 $0 - $9,600 0% $0 - $9,600 0% $0 - $8,839 0% $0 - $8,648 0% $0 - $8,012 0% $0 - $7,756 0% $0 - $7,634 0% $0 - $7,412 0% $0 - $7,231 0% $0 - $6,794 0% $0 - $6,794 0%
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
Income not taxed

The following types of income are not taxed in Canada (this list is not exhaustive): gifts and inheritances; lottery winnings;
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Goods & Services Tax

The federal government's sales tax is a value-added tax.
Harmonized Sales Tax

The Harmonized Sales Tax (HST) is used in certain provinces to combine the federal Goods and Services Tax (GST) and the Provincial Sales Tax (PST) into a single, blended, sales tax. Currently, there is a 13% HST in the provinces of New Brunswick, Newfoundland, and Nova Scotia. The HST is collected by the Canada Revenue Agency, which then remits the appropriate amounts to the participating provinces. Like the GST, the HST is value-added. Effective July 1, 2010 British Columbia and Ontario will adopt HST replacing their current PST at 12% and 13% respectively.
Annual revenue from taxable sales
report annually $1.5M or less: More than $1.5M up to $6M: report quarterly report monthly More than $6M: If you wish to change your reporting period, perhaps because your business uses accounting periods that are not monthly or quarterly, you must notify the Canada Revenue Agency.
Provincial Sales Taxes

Separate Provincial Sales Taxes (PST) are collected in the provinces of British Columbia, Saskatchewan, Manitoba, Ontario, Quebec (called QST for Quebec Sales Tax, in French TVQ, Taxes des Ventes du Qubec), and Prince Edward Island. Goods to which the tax is applied varies by province, as does the rate. Moreover, for those provinces whose provincial sales tax is applied to the combined cost and GST, provincial revenues decline or increase with respective changes in the GST. Of the provincial sales taxes, only the QST (and the HST) are value-added; the rest are cascading taxes.
Province
Rate Combined fed. (%) /prov. rate (%)
Note food, fuel, children's sized clothes and footwear as
British Columbia
12
well as some other items and service are exempted (see Sales taxes in British Columbia for more detail) Alcohol is taxed at 10%. Passenger vehicles are taxed at between 7% to 10% based on purchase price. Harmonized Sales Tax takes effect on July 1, 2010.
Alberta has no provincial sales tax. There is a 4% tax
Alberta
0 5 7
5 10 12
on lodging.
Reduced from 7% on 28 October 2006 There is a separate 10% liquor consumption tax. The
Saskatchewan Manitoba
non-alcoholic portion of a restaurant meal is not taxed.

PST is usually 8%, but is 5% on lodging, 10% on
Ontario
13
entertainment and alcohol at restaurants and 12% on alcohol at retail stores on top of the flat LCBO liquor mark-ups. Harmonized Sales Tax takes effect on July 1, 2010.
Provincial rate is nominally 7.5%, but also applied to
Quebec Prince Edward Island New Brunswick Nova Scotia Newfoundland and Labrador
7.5 10 13 13 13
12.875 15.5
federal 5% GST. Effectively 7.875%

Provincial rate is nominally 10%, but also applied to
federal 5% GST. Effectively 10.5%

Harmonized Sales Tax includes provincial tax and
GST
GST/HST rates
The GST is a tax that applies on most supplies of goods and services made in Canada. The GST also applies to supplies of real property (for example, land, buildings and interests in such property) and intangible property such as trademarks, rights to use a patent, and digitized products downloaded from the Internet and paid for individually. The participating provinces (Nova Scotia, New Brunswick, and Newfoundland and Labrador) harmonized their provincial sales tax with the GST to implement the HST. Generally, the HST applies to the same base of goods and services as the GST. As of July 1, 2010, Ontario harmonized its retail sales tax with the GST to implement the HST and British Columbia harmonized its provincial sales tax with the GST to implement the HST. Also, as of July 1, 2010, Nova Scotia increased its HST rate from 13% to 15%. For information see Nova Scotia HST rate increase.
In Quebec, Revenue Qubec administers the GST/HST. If your business is located in Quebec, visit the Revenu Qubec Web site.
The HST breakdown:

The HST rate of 12% includes the 5% federal part and 7% provincial part. The HST rate of 13% includes the 5% federal part and 8% provincial part. The HST rate of 15%* includes the 5% federal part and 10% provincial part. (As of July 1, 2010) The HST rate of 14% includes the 6% federal part and 8% provincial part. The HST rate of 15% includes the 7% federal part and 8% provincial part.
GST/HST Rates
Provincial On or after July 1, 2010 On or after January 1, 2008, and before July 1, 2010
5% 5% 5% 13% 13% 5% 13% 5% 5% 5% 5% 5%
Before January 1, 2008, and after June 30, 2006

6% 6% 6% 14% 14% 6% 14% 6% 6% 6% 6% 6%
On or after April 1, 1997, and before July 1, 2006

7% 7% 7% 15% 15% 7% 15% 7% 7% 7% 7% 7%
Before April 1, 1997

7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7%
Alberta British Columbia Manitoba New Brunswick Newfoundland and Labrador Northwest Territories Nova Scotia Nunavut Ontario Prince Edward Island Saskatchewan Yukon
5% 12% 5% 13% 13% 5% 15%* 5% 13% 5% 5% 5%
Non-Refundable Tax Credit Blocks BC / 2000-2012 Credit 2000 Personal Credits Basic Personal Amount Spousal Reduced when spousal income exceeds Eligible Dependant Reduced when dependant income exceeds Infirm Dependant Credit Reduced when dependant income exceeds In-home care of relative Reduced when relative's income exceeds Age (65 or older by end of taxation year) Reduced when income exceeds Pension Credit Adoption Expense Credit Based on actual adoption expenses to a maximum of '1' (based on federal indexed maximum amount) Charitable and other gifts Lowest tax rate on first $200; highest tax rate on excess Medical Expense Credit Reduced by lesser of '2' or 3% of net income Credit for Mental or Physical Impairment Credit for Mental or Physical Impairment for child under 18 Reduced by attendant care and child care expenses in excess of '3' claimed in respect of the impaired child Tuition Credit Education Full-time student Part-time student Student Loan Interest EI and CPP Credit $200/month $60/month Actual Actual $200/month $60/month Actual Actual $200/month $60/month Actual Actual $200/month $60/month Actual Actual $200/month $60/month Actual Actual $200/month $60/month Actual Actual $200/month $60/month Actual Actual $200/month $60/month Actual Actual $200/month $60/month Actual Actual $200/month $60/month Actual Actual $200/month $60/month Actual Actual $200 $60 Actual Actual $200 $60 Actual Actual no no no Actual Actual Actual Actual Actual Actual no $7,231 $6,140 ($614) $6,140 ($614) $2,386 ($11,661) $2,386 ($4,845) $3,531 ($26,284) $1,000 $8,000 $6,850 ($685) $6,850 ($685) $2,424 ($5,576) $2,424 ($11,848) $3,587 ($26,705) $1,000 $8,168 $6,994 ($699) $6,994 ($699) $3,574 ($5,693) $3,574 ($12,096) $3,663 ($27,265) $1,000 $8,307 $7,113 ($711) $7,113 ($711) $3,635 ($5,790) $3,634 ($12,302) $3,725 ($27,729) $1,000 $8,523 $7,298 ($730) $7,298 ($730) $3,730 ($5,940) $3,730 ($12,621) $3,822 ($28,450) $1,000 $8,676 $7,429 ($743) $7,429 ($743) $3,797 ($6,047) $3,796 ($12,849) $3,891 ($28,962) $1,000 $8,858 $7,585 ($759) $7,585 ($759) $3,876 ($6,174) $3,877 ($13,118) $3,972 ($29,570) $1,000 $9,027 $7,729 ($773) $7,729 ($773) $3,949 ($6,292) $3,949 ($13,368) $4,048 ($30,132) $1,000 $9,189 $7,868 ($787) $7,868 ($787) $4,021 ($6,405) $4,021 ($13,608) $4,121 ($30,674) $1,000 $1,000 $1,000 $9,373 $8,026 ($803) $8,026 ($803) $4,101 ($6,533) $4,101 ($13,881) $4,203 $11,000 $9,653 ($965) $9,653 ($965) $4,118 ($6,559) $4,118 ($13,936) $4,220 $11,088 $9,730 $ (973) $9,730 $(973) $4,151 $(6,611) $4,150 ($14,048) $4,254 $(31,664) $1,000 $11,355 $9,964 ($996) $9,964 ($996) $4,250 ($6,770) $4,250 ($12,385) $4.250 ($32,424 $1,000 no yes yes yes yes yes yes 2001 2002 2003 2004 2005 Base Amount 2006 2007 2008 2009 2010 2011 2012 Subject to Indexing
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
no
Actual $4,293 $2,941 $2,000 Actual
Actual $4,362 $2,988 $2,032 Actual
Actual $6,126 $3,574 $2,075 Actual
Actual $6,230 $3,635 $2,110 Actual
Actual $6,392 $3,729 $2,165 Actual
Actual $6,507 $3,796 $2,204 Actual
Actual $6,644 $3,876 $2,250 Actual
Actual $6,770 $3,950 $2,293 Actual
Actual $6,892 $4,021 $2,334 Actual
Actual $7,030 $4,101 $2,381 Actual
Actual $7,058 $4,118 $2,391 Actual
Actual $7,114 $4,151 $2,410 Actual
Actual $7,285 $4,250 $2,468 Actual
yes yes yes
no
1 2 3
2000 $1,637 $2,000
2001 $1,633 $2,032
2002 $1,698 $2,075
2003 $1,727 $2,110
2004 $1,772 $2,165
2005 $1,804 $2,204
2006 $1,842 $2,250
2007 $10,445 $1,877 $2,293
2008 $10,643 $1,911 $2,334
2009 $10,909 $1,949 $2,381
2010 $10,975 $1,957 $2,391
2011 $11,128 $1,972 $2,410
2012 11,440 $2,020 $2,468
Tax Credits - Low Income Climate Action Tax Credit

Effective July 2008, individuals may be eligible for the B.C. refundable Low Income Climate Action Tax Credit. You are eligible for the Low Income Climate Action Tax Credit if you are a resident of British Columbia, and you are 19 years of age or older or you have a spouse or common-law partner or you are a parent who resides with your child For payments commencing in 2008 the maximum credit is $100 for yourself, $100 for your spouse or common-law partner and $30 for each qualified dependant. If you are a single parent the maximum credit is $100 for yourself, $100 for your first child and $30 for each additional child. For payments starting in July 2009 and July 2010 the maximum credits are increased to $105 and $31.50. For payments starting July 2011 the maximum credits are increased to $115.50 and $34.50 The Low Income Climate Action Tax Credit is reduced by 2% of net family income over the income threshold. The income thresholds are indexed to the Consumer Price Index for British Columbia.
Tax Year 2012 2011 2010 2009 Payment Dates For July 2011 to June 2012 For July 2010 to June 2011 For July 2009 to June 2010 For July 2008 to June 2009 Net Income Threshold Single $30,968 $30,722 $30,600 $30,000 Net Income Threshold Married or Single Parent $36,130 $35,843 $35,700 $35,000
Claiming the Credit

The tax credit will be paid quarterly together with the federal Goods and Services Tax Credit in July, October, January and April. You cannot claim this credit if you were confined to a prison or similar institution for a period of at least 90 days that includes the first day of that quarter.
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Comparison indexation adjustment for personal income tax and benefit amounts
Each year, certain personal income tax and benefit amounts are indexed to inflation using the Consumer Price Index data as reported by Statistics Canada. Increases to tax bracket thresholds, amounts relating to non-refundable credits, and most other amounts will take effect on January 1, 2010. However, increases to the Canada Child Tax Benefit (including the National Child Benefit Supplement and the Child Disability Benefit) and the goods and services tax credit will take effect on July 1, 2010, to coincide with the beginning of the program year for payment of these benefits. The following chart compares the indexed amounts for the 2009-2012 tax years. It reflects an indexation increase of 0.6% for 2010.
Year Tax bracket thresholds Taxable income above which the 22% bracket begins Taxable income above which the 26% bracket begins Taxable income above which the 29% bracket begins Basic personal amount Age amount Net income threshold Spouse or common-law partner amount (max.) Amount for an eligible dependant (max.) Amount for children under age 18 (max. per child) Canada employment amount (max.) Infirm dependant amount (max. per dependant) Net income threshold Caregiver amount (max. per dependant) Net income threshold Disability amount Supplement for children with disabilities (max.) Threshold relating to allowable child care and attendant care expenses Adoption expenses (max. per adoption) Medical expense tax credit3% of net income ceiling Maximum supplement Minimum earnings threshold Family net income threshold Old Age Security repayment threshold Certain board and lodging allowances paid to players on sports teams or members of recreation programs Income exclusion (max. per month) 329 320 315 313 42,707 85,414 132,406 10,882 6,720 33,884 10,822 12,822 2,191 1,095 6,402 6,420 4,402 15,033 7,546 4,402 2,578 11,440 2,109 1,119 3,268 24,783 69,562 41,544 83,088 40,970 81,941 40,726 81,452 2012 ($) 2011 ($) 2010 ($) 2009 ($)
128,800 127,021 126,264 10,527 6,537 32,961 10,527 10,527 2,131 1,065 4,282 6,076 4,282 14,624 7,341 4,282 2,508 11,128 2,052 1,089 3,179 24,108 67,668 10,382 6,446 32,506 10,382 10,382 2,101 1,051 4,223 5,992 4,223 14,422 7,239 4,223 2,473 10,975 2,024 1,074 3,135 23,775 66,733 10,320 6,408 32,312 10,320 10,320 2,089 1,044 4,198 5,956 4,198 14,336 7,196 4,198 2,459 10,909 2,011 1,067 3,116 23,633 66,335
Amounts relating to non-refundable tax credits
Refundable medical expense supplement
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Year Tradespersons tools deduction Threshold amount relating to cost of eligible tools Goods and services tax credit Adult maximum Child maximum Single supplement Phase-in threshold for the single supplement Family net income at which credit begins to phase out Canada Child Tax Benefit Base benefit Additional benefit for third child Family net income at which base benefit begins to phase out First child Second child Third child Family net income at which NCB supplement begins to phase out Family net income at which NCB supplement phase-out is complete
2012 ($) 1,095 260 137 137 8,439 33,884 1,405 98 42,707 2,177 1,926 1,832 24,863 42,707 2,575 42,707 3,582
2011 ($) 2010 ($) 2009 ($) 1,065 253 133 133 8,209 32,961 1,367 95 41,544 2,118 1,873 1,782 24,183 41,544 2,504 41,544 3,485 1,051 250 131 131 8,096 32,506 1,348 94 40,970 2,088 1,848 1,758 23,855 40,970 2,470 40,970 3,436 1,044 248 130 130 8,047 32,312 1,340 93 40,726 2,076 1,837 1,747 23,710 40,726 2,455 40,726 3,416
National Child Benefit (NCB) supplement
Canada Disability Benefit (CDB) Maximum benefit Family net income at which CDB supplement begins to phase out CSA Base Amount
Childrens Special Allowances (CSA)
12
Indexation adjustment for personal income tax and benefit amounts / 2005-2012
2005 ($) Taxable income above which the 22% bracket begins Taxable income above which the 26% bracket begins Taxable income above which the 29% bracket begins 35,595 71,190 115,739 2006 ($) 36,378 72,756 118,285 2007 ($) 37,178 74,357 120,887 2008 ($) 37,885 75,769 123,184 2009 ($) 40,726 81,452 126,264 2010 ($) 40,970 81,941 127,021 2011 ($) 41,544 83,088 128,800 2012 ($) 42,707 85,414 132,406
Amounts relating to non-refundable tax credit Basic personal amount Age amount Net income threshold Spouse or common-law partner amount (max.) Amount for an eligible dependant (max.) Amount for children under age 18 (max. per child) Canada employment amount (max.) Infirm dependant amount (max. per dependant) Net income threshold Caregiver amount (max. per dependant) Net income threshold Disability amount Supplement for children with disabilities (max.) Threshold relating to allowable child care and attendant care expenses Adoption expenses (max. per adoption) Medical expense tax credit3% of net income ceiling Certain board & loading Maximum supplement Minimum earnings threshold Family net income threshold Old Age Security repayment threshold 750 2,857 21,663 60,806 1,000 2,919 22,140 62,144 1,022 2,984 22,627 63,511 1,041 3,040 23,057 64,718 1,067 3,116 23,633 66,335 1,074 3,135 23,775 66,733 1,089 3,179 24,108 67,668 1,119 3,268 24,783 69,562 8,648 3,979 29,619 7,344 3,848 5,460 3,848 13,141 6,596 3,848 2,254 10,000 1,844 9,039 4,066 30,270 7,675 7,505 3,933 5,580 3,933 13,430 6,741 3,933 2,303 10,220 1,884 9,600 5,177 30,936 9,600 9,600 2,000 1,000 4,019 5,702 4,019 13,726 6,890 4,019 2,354 10,445 1,926 9,600 5,276 31,524 9,600 9,600 2,038 1,019 4,095 5,811 4,095 13,986 7,021 4,095 2,399 10,643 1,962 10,320 6,408 32,312 10,320 10,320 2,089 1,044 4,198 5,956 4,198 14,336 7,196 4,198 2,459 10,909 2,011 10,382 6,446 32,506 10,382 10,382 2,101 1,051 4,223 5,992 4,223 14,422 7,239 4,223 2,473 10,975 2,024 10,527 6,537 32,961 10,527 10,527 2,131 1,065 4,282 6,076 4,282 14,624 7,341 4,282 2,508 11,128 2,052 10,822 6,720 33,884 10,822 12,822 2,191 1,095 6,402 6,420 4,402 15,033 7,546 4,402 2,578 11,440 2,109
Income exclusion (max. per month)
313
315
320
329
Threshold amount relating to cost of eligible tools
1,044
1,051
1,065
1,095
Adult maximum Child maximum Single supplement Phase-in threshold for the single supplement Family net income at which credit begins to phase out
227 120 120 7,377 29,618
232 122 122 7,539 30,270
237 125 125 7,705 30,936
242 127 127 7,851 31,524
248 130 130 8,047 32,312
250 131 131 8,096 32,506
253 133 133 8,209 32,961
260 137 137 8,439 33,884
Base benefit Additional benefit for third child Additional benefit for children under 7 years Family net income at which base benefit begins to phase out
1,228 86 243 35,595
1,255 88 249 36,378
1,283 90 37,178
1,307 91 37,885
1,340 93 40,726
1,348 94 40,970
1,367 95 41,544
405 98 42,707
First child Second child Third child Family net income at which NCB supplement begins to phase out Family net income at which NCB supplement phase-out is complete
1,722 1,502 1,420 35,595
1,945 1,720 1,637 36,378
1,988 1,758 1,673 20,883 37,178
2,025 1,792 1,704 21,287 37,885
2,076 1,837 1,747 23,710 40,726
2,088 1,848 1,758 23,855 40,970
2,118 1,873 1,782 24,183 41,544
2,177 1,926 1,832 24,863 42,707
Maximum benefit Family net income at which CDB supplement begins to phase out
2,000 35,595
2,300 36,378
2,351 37,178
2,395 37,885
2,455 40,726
2,470 40,970
2,504 41,544
2,575 42,707
CSA Base Amount
3,271
3,332
3,416
3,436
3,485
3,582
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Canadian Pension Plan (CPP)

Since January 1, 2012, you may have to deduct CPP contributions from the pensionable earnings you pay an employee who is 60 to 70 years of age, even if the employee is receiving a CPP or QPP retirement pension. Under the new rules, an employee who works and receives a CPP or QPP retirement pension now has to contribute to the CPP if he or she is: 60 to 65 years of age; 65 to 70 years of age, unless the employee has filed an election with you or another employer to stop paying CPP contributions (the election will take effect on the first day of the month following the month the employee provides you with a completed and signed election form); 65 to 70 years of age, if the employee revoked his or her election to stop paying CPP contributions in 2013 or later. Notes These legislative amendments do not affect the salary or wages of an employee who is considered to be disabled under the CPP or QPP, nor do they affect the salary and wages of a person who has reached 70 years of age. Do not deduct CPP contributions from the salary and wages that you pay these employees. Employees working in Quebec and other workers not subject to the CPP are not affected by these changes. You have to deduct CPP contributions from an employee who is employed in pensionable employment and is receiving pensionable earnings, and meets one of these conditions: Who is currently receiving a CPP or QPP retirement pension and is 60 to 65 years of age, even if it means deducting from someone who was not contributing in a previous year because he or she was receiving a CPP/QPP retirement pension; OR Who is currently receiving a CPP or QPP retirement pension and is 65 to 70 years of age, and who has not given you a copy of a signed and completed Form CPT30, Election to Stop Contributing to the Canada Pension Plan, or Revocation of a Prior Election. Note The CRA can assess you for failing to deduct CPP contributions or for failing to remit the CPP contributions to the CRA as required. The assessment may also include penalty and interest charges. For more information, go to Penalties, interest, and other consequences.
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Canada Pension Plan Payment Rates Type of benefit Disability benefit Retirement pension (at age 65) Survivors benefit (under age 65) Survivors benefit (age 65 and over) Children of disabled contributors benefit Children of deceased contributors benefit Combined survivors & retirement benefit (pension at age 65) Combined survivors & disability benefit Death benefit $2,252.93 Average benefit (September 2010) $810.46 $504.50 $364.85 $297.72 $214.85 $214.85 $682.21 $940.78 Maximum monthly benefit (2011) $1,153.37 $960.00 $529.09 $576.00 $218.50 $218.50 $960.00 $1,153.37 Maximum one-time payment $2,500.00
EI premium rates and maximums

Year Max. Annual Insurable Earnings Rate (%) Federal Quebec 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 $45,900 $44,200 $43,200 $42,300 $41,100 $40,000 $39,000 $39,000 $39,000 $39,000 $39,000 $39,000 $39,000 $39,000 $39,000 $39,000 1.83 1.78 1.73 1.73 1.73 1.80 1.87 1.95 1.98 2.10 2.20 2.25 2.40 2.55 2.70 2.90 1.47 1.41 1.36 1.38 1.39 1.46 1.53 N/A N/A N/A N/A N/A N/A N/A N/A N/A Max. Annual Employee Premium Federal $839.97 $786.76 $747.36 $731.79 $711.03 $720.00 $729.30 $760.50 $772.20 $819.00 $858.00 $877.50 $936.00 $994.50 $1,053.00 $1,131.00 Quebec $674.96 $623.22 $587.52 $583.74 $571.29 $584.00 $596.70 N/A N/A N/A N/A N/A N/A N/A N/A N/A Max. Annual Employer Premium Federal $1,176.96 $1,101.46 $1,046.30 $1,024.51 $995.44 $1,008.00 $1,021.02 $1,064.70 $1,081.08 $1,146.60 $1,201.20 $1,228.50 $1,310.49 $1,392.30 $1,474.20 $1,583.40 Quebec $944.62 $872.51 $822.53 $817.24 $799.81 $817.60 $835.38 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Important Note
Quebec offers its own parental benefits. For more information, visit the Revenu Qubec site.
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CPP contribution rates, maximums and exemptions 1997-2012

Year 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 Max. Annual Pensionable Earnings $50,100 $48,300 $47,200 $46,300 $44,900 $43,700 $42,100 $41,100 $40,500 $39,900 $39,100 $38,300 $37,600 $37,400 $36,900 $35,800 Basic Exemption $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 Maximum Contributory Earnings $46,600 $44,800 $43,700 $42,800 $41,400 $40,200 $38,600 $37,600 $37,000 $36,400 $35,600 $34,800 $34,100 $33,900 $33,400 $32,300 Employee Contribution Rate (%) 4.95 4.95 4.95 4.95 4.95 4.95 4.95 4.95 4.95 4.95 4.70 4.30 3.90 3.50 3.20 2.925* Max. Annual Employee Contribution $2,306.70 $2,217.60 $2,163.15 $2,118.60 $2,049.30 $1,989.90 $1,910.70 $1,861.20 $1,831.50 $1,801.80 $1,673.20 $1,496.40 $1,329.90 $1,186.50 $1,068.80 $944.78 Max. Annual Self Employed Contribution $4,613.40 $4,435.20 $4,326.30 $4,237.20 $4,098.60 $3,979.80 $3,821.40 $3,722.40 $3,663.00 $3,603.60 $3,346.40 $2,992.80 $2,373.00 $2,373.00 $2,137.60 $1,889.55
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Basic exemption chart

Employee's CPP basic exemption for various 2012 pay periods.
Pay period Annually (1) Semi-annually (2) Quarterly (4) Monthly (12) Semi-monthly (24) Bi-weekly (26) Bi-weekly (27) Weekly (52) Weekly (53) 22 pay periods 13 pay periods 10 pay periods Daily (240) Hourly (2000)
* For 1997, the CPP rate was adjusted to 3.0% with a payment on filing the T1 tax return max.
Basic exemption $3,500.00 $1,750.00 $875.00 $291.66 $145.83 $134.61 $129.62 $67.30 $66.03 $159.09 $269.23 $350.00 $14.58 $1.75
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EI premium rate and maximum

Each year, CRA provide the maximum insurable earnings and rate for employer to calculate the amount of EI to deduct from your employees. Employer has to deduct EI premiums from insurable earnings their pay to their employees. In addition, employer must pay 1.4 times the amount of the employee's premiums. Employer may qualify to reduce your 1.4 times employer contribution if employer provides their employees a short-term disability plan. Example
EI premiums you deducted from your employees for the month Your share of EI ($195.50 1.4 ) Total amount you remit for EI premiums $195.50 $273.70 $469.20
You stop deducting EI premiums when you reach the employee's maximum insurable earnings ($45,900 for 2012) or the maximum employee premium for the year ($839.97 for 2012). The maximum for Quebec is $647.73 for 2012. Note The annual maximum insurable earnings ($45,900 for 2012) applies to each job the employee holds with different employers (different business numbers). If an employee leaves one employer during the year to start work with another employer, the new employer also has to deduct EI premiums without taking into account what was paid by the previous employer. This is the case even if the employee has paid the maximum premium amount during the previous employment. CRA will credit or refund any overpayments to employees when they file their income tax and benefit return. There is no provision that provides a credit or refund to the employer in such circumstances. Note Different EI rates apply for employees working in Quebec as a result of the establishment of the Quebec Parental Insurance Plan (QPIP). Old Age Security (OAS) Payment Rates- January - March 2011 The following chart shows the maximum and average monthly rates for Old Age Security (OAS), Guaranteed Income Supplement and the Allowance, as well as the maximum annual income to be eligible for these benefits. For detailed monthly rates, please refer to the Tables of Rates for Old Age Security, Guaranteed Income Supplement and the Allowance. Old Age Security benefit rates are reviewed in January, April, July and October to reflect increases in the cost of living as measured by the Consumer Price Index.
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The term "spouse" includes a common-law partner. Pensioners are not eligible for benefits if their income, or the combined income of them and their spouse, is more than the maximum income shown on the chart.
Canada Pension Plan - Payment Rates Jan - Dec 2012

Canada Pension Plan (CPP) rates are adjusted every January if there are increases in the cost of living as measured by the Consumer Price Index (CPI). The table below lists the maximum and average monthly rates for CPP benefits, except for the death benefit which is a one-time payment.
Canada Pension Plan Payment Rates Type of benefit Retirement (at age 65) Disability Survivor younger than 65 Survivor 65 and older Children of disabled contributors Children of deceased contributors Death (maximum one-time payment) Combined benefits Survivor/retirement (retirement at 65) $701.46 Survivor/disability $949.22 $986.67 $1,185.50 Average benefit Maximum amount (October 2011) (2012) $512.64 $820.96 $383.56 $301.15 $218.50 $218.50 $2,276.62 $986.67 $1,185.50 $543.82 $592.00 $224.62 $224.62 $2,500.00
Meal and vehicle rates used to calculate travel expenses for 2012
Meal expenses
If you choose the detailed method to calculate meal expenses, you must keep your receipts and claim the actual amount that you spent. If you choose the simplified method, you may claim a flat rate of $17/meal, to a maximum of $51/day (Canadian or US funds) per person. Although you do not need to keep detailed receipts for actual expenses if you choose to use this method, we may still ask you to provide some documentation to support your claim.
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Meal expenses Prior table of simplified method 2001-2012 Year 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 $ Meal per person 17 17 17 17 17 11 15 15 15 15 11 17 $ Maximum Per day 51 51 51 51 51 33 45 45 45 45 33 51
Vehicle expenses
If you choose the detailed method to calculate vehicle expenses, you must keep all receipts and records for the vehicle expenses you incurred for moving expenses or for northern residents deductions during the tax year; or during the 12-month period you choose for medical expenses. Vehicle expenses include: Operating expenses such as fuel, oil, tires, licence fees, insurance, maintenance, and repairs. Ownership expenses such as depreciation, provincial tax, and finance charges. You also have to keep track of the number of kilometers you drove in that time period, as well as the number of kilometers you drove specifically for the purpose of moving or medical expenses, or for the northern residents deductions. Your claim for vehicle expenses is the percentage of your total vehicle expenses that relate to the kilometers driven for moving or medical expenses, or for northern residents deductions. For example, if you drove 10,000 km during the year, and half of that was related to your move, you can claim half of the total vehicle expenses on your tax return. Although you do not need to keep detailed receipts for actual expenses if you choose to use the simplified method, we may still ask you to provide some documentation to support your claim. You must keep track of the number of kilometers driven during the tax year for your trips relating to northern residents deductions and moving expenses, or the 12-month period you choose for medical expenses. To determine the amount you can claim for vehicle expenses, multiply the number of kilometers by the cents/km rate from the chart below for the province or territory in which the travel begins.
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Motor vehicle leasing costs - employees

You can deduct amounts you paid to lease a motor vehicle you used to earn employment income. Include the leasing costs you paid when you calculate your allowable motor vehicle expenses. If you use a passenger vehicle to earn employment income, there is a limit on the amount of the leasing costs you can deduct. If you leased a passenger vehicle before January 1, 2001, you will need to refer to the applicable chart in the 2008 version of the Guide T4044, Employment expenses to assist you in calculating the eligible leasing costs. You can use the Chart, Eligible leasing costs for passenger vehicles leased after December 31, 2000 to calculate your eligible leasing costs for a passenger vehicle leased after 2000 as follow: Chart - Eligible leasing costs for passenger vehicles leased after December 31, 2000
1. Enter the total lease charges paid for the vehicle in 2011 2. Enter the total lease payments deducted for the vehicle before 2011 3. Enter the total number of days the vehicle was leased in 2011 and previous years 4. Enter the manufacturer's list price 5. $35,294 + GST and PST, or HST on $35,294 6. Enter the amount from line 4 or line 5, whichever is more 7. ($800 + GST and PST, or HST on $800) line 3 = 8. ($30,000 + GST and PST, or HST on $30,000) line 1 = $______ 30 = $______ 85% $______ line 2 $______ line 6 $________ $________ $________ $________ $________ $________ $________ $________
Your eligible leasing cost is the lower of the amounts on line 7 and line 8.
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Comparison table of Vehicle expenses 2001-2012

Province or territory Alberta British Columbia Manitoba New Brunswick Newfoundland and Labrador Northwest Territories Nova Scotia Nunavut Ontario Prince Edward Island Quebec Saskatchewan Yukon 2012 53 52 49 52 55 61.5 53 61.5 57 52 59 47.5 63.5 2011 53 52 49 52 55 61.5 53 61.5 57 52 59 47.5 63.5 2010 51.5 52 47.5 49.5 53 58 51 58 55 50 56.5 46 60.5 2009 51.5 52 49 50 53.5 58 50 58 54 50 57 47.5 61 2008 53 54 50.5 52 55.5 64 52.5 64 55.5 52.5 58 49.5 66 2007 48 48 46.5 47 50.5 56.5 48 56.5 49.5 47 52.5 46 58 2006 47.5 47.5 45.5 47.5 50.5 54.5 47.5 54.5 48.5 47.5 51.5 44.5 57 2005 45.5 45.5 44 45.5 49 52.5 46 52.5 47 45.5 50 43 55 2004 43.5 43 40.5 43.5 47.5 49 44 49 45.5 44 47.5 40 50.5 2003 41.5 41.5 40.5 44 45 48.5 44 48.5 43.5 42 46 39 48.5 2002 39.5 42 41.5 41.5 43.5 48.5 41.5 48.5 43.5 40.5 45 40 48 2001 39.5 42 41 42 43.5 47 42 47 42.5 41 46 38.5 48.5
Example
In 2011, you provided your employee with an automobile. She drove 30,000 kilometres during the year, with 10,000 kilometres for personal use. You paid $3,000 in costs associated with maintenance, licenses, and insurance. Calculate the part of the operating expenses that relates to her personal use of the automobile as follows: 10,000 km 30,000 km $3,000 = $1,000 If she reimbursed you for the total amount of $1,000 in the year or no later than 45 days after the end of the year, you do not have to calculate an operating expense benefit for her. However, if she reimbursed you for only $800 of the expenses you paid in the year or no later than 45 days after the end of the year, the operating expense benefit is $1,600, calculated as follows: 10,000 km 24 = $2,400 $2,400 - $800 = $1,600
Flat-rate allowance
If you pay your employee an allowance based on a flat rate that is not related to the number of kilometers driven, it is a taxable benefit and has to be included in the employee's income.
Combination of flat-rate and reasonable per-kilometre allowances

If you pay your employee an allowance that is a combination of flat-rate and reasonable per-kilometre allowances that cover the same use for the vehicle, the total combined allowance is a taxable benefit and has to be included in the employee's income.
Example 1
You pay an allowance to your employee as follows:
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a flat per-diem rate to offset the employee's fixed expenses for each day the vehicle is required; and A reasonable per-kilometer rate for each kilometre driven to offset the operating expenses. The flat per-diem rate compensates the employee for some of the same use on which the reasonable per-kilometre allowance is based, that is, the fixed expenses incurred by the employee to operate the vehicle. The combined amount is considered one allowance and therefore taxable, since it is not based solely on the number of kilometres the vehicle is used for employment purposes.
Example 2

You pay an allowance to your employee as follows: a flat-rate per month for travel inside the employment district; and a reasonable per-kilometre rate for employment-related travel outside the employment district. Since the flat-rate allowance does not cover any of the same use of the vehicle on which the reasonable per-kilometre allowance is based, the allowances are considered separately. The reasonable per-kilometer allowance paid for travel outside the district is not included in income. The amount based on a flat-rate paid for travel inside the district is taxable, since it is not based solely on the number of kilometres for which the vehicle is used in connection with the employment. Only the total of the monthly flat-rate allowance has to be reported in box 14, Employment income, and in the Other information area under code 40 at the bottom of the employee's T4 slip.
Example of calculating the taxable benefit

Farzaneh is your employee. He borrowed $150,000 from you at the beginning of the year. The prescribed rate of interest for the loan is 3% for the first quarter, 4% for the second and third quarters, and 5% for the fourth quarter. Farzaneh paid you $2,000 interest on the loan no later than 30 days after the end of the year. During the year, a company related to you paid $1,000 interest on the loan for Farzaneh. Before the end of the same year, Farzaneh repaid the $1,000 to the company.
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Calculate the benefit to include in his income as follows: 1) Prescribed rate loan amount for the year: 3% $150,000 1/4 = $1,125 4% $150,000 2/4 = $3,000 5% $150,000 1/4 = $1,875 Plus 2) Amount paid by a third party Minus 3) Interest paid ($2,000 + $1,000) = 4) Amount Joshua repaid Farzaneh's taxable benefit
$6,000 1,000 $7,000 ($3,000) (1,000)
(4,000) $3,000
Prescribed Interest Rates for Leasing Rules

Year January February March April May June July August 2002 2003 6.55 6.37 6.45 6.39 6.52 6.34 6.01 5.98 6.35 6.40 6.19 6.33 2004 6.24 6.14 6.15 5.98 5.94 6.23 6.23 6.30 6.29 6.14 6.02 5.96 2005 5.87 5.86 5.69 5.71 5.75 5.55 5.41 5.27 5.31 5.11 5.21 5.38 2006 5.20 5.04 5.22 5.17 5.26 5.59 5.51 5.69 5.46 5.22 5.08 5.25 2007 5.03 5.11 5.23 5.10 5.21 5.21 5.43 5.59 5.52 5.44 5.50 5.39 2008 5.22 5.18 5.17 5.14 4.91 5.02 5.07 5.07 5.18 5.02 5.14 5.31 2009 5.00 4.45 4.74 4.70 4.63 4.72 5.11 4.96 5.10 4.96 4.87 4.98 2010 4.84 5.08 4.92 4.98 4.99 4.99 4.58 4.59 4.71 4.39 4.25 4.38 2011 4.60 4.51 4.71 4.69 4.66 4.67 4.41 4.47 4.28 4.00 3.74 3.91 2012 3.61 3.42
6.66 6.75 6.72 6.68 7.00 6.89 6.76 6.73
September 6.70 October November December
6.55 6.38 6.61
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Comparison Federal Personal Income Tax Rates

2011 Marginal Tax Rates Canadian Dividends 2012 Taxable Income Other Capital Income Gains 2011 Taxable Income Eligible Non-Eligible Dividends Dividends -2.02% 7.85% 13.49% 17.72% 2.08% first $41,544 10.83% over $41,544 up to $83,088 15.83% over $83,088 up to $128,800 19.58% over $128,800 Other Income Capital Gains 2012 Marginal Tax Rates Canadian Dividends Eligible Non-Eligible Dividends Dividends -3.03% 9.63% 15.15% 19.29% 2.08% 10.83% 15.83% 19.58%
first $42,707 over $42,707 up to $85,414 over $85,414 up to $132,406 over $132,406
15.00% 22.00% 26.00% 29.00%
7.50% 11.00% 13.00% 14.50%
15.00% 22.00% 26.00% 29.00%
7.50% 11.00% 13.00% 14.50%
Marginal tax rate for dividends is a % of actual dividends received (not grossed-up amount). Federal Basic Personal Amount 2012 $10,822 Tax Rate 15.00% 2011 $10,527 Tax Rate 15.00%
Comparison Federal Personal Income Tax Rates

2010 Marginal Tax Rates Canadian Dividends 2010 Taxable Income Other Capital Income Gains 2009 Taxable Income Small Eligible Business Dividends Dividends -4.28% 2.08% first $40,726 Other Capital Income Gains 2009 Marginal Tax Rates Canadian Dividends
Small Eligible Business Dividends Dividends -5.75% 2.08%
first $40,970
15.00% 7.50%
15.00% 7.50%
over $40,970 up to $81,941
22.00% 11.00%
5.80%
10.83%
over $40,726 up to $81,452 22.00% 11.00%
4.40%
10.83%
over $81,941 up to $127,021
26.00% 13.00%
11.56%
15.83%
over $81,452 up to $126,264 26.00% 13.00% 10.20%
15.83%
over $127,021
29.00% 14.50%
15.88%
19.58%
over $126,264
29.00% 14.50% 14.55%
19.58%
Marginal tax rate for dividends is a % of actual dividends received (not grossed-up amount). Federal Basic Personal Amount 2010 $10,382 Tax Rate 15.00% 2009 $10,320 Tax Rate 15.00%
Source: www. taxtip.ca
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Canada Pension Plan (CPP) and Qubec Pension Plan (QPP) contribution rates
Year 2012 $50,100 $3,500 %4.95 $2,306.70 $4,613.40 2011 $48,300 $3,500 4.95% $2,217.60 $4,435.20 2010 $47,200 $3,500 4.95% $2,163.15 $4,326.30 2009 $46,300 $3,500 4.95% $2,118.60 $4,237.20 2008 $44,900 $3,500 4.95% $2,049.30 $4,098.60 2007 $43,700 $3,500 4.95% $1,989.90 $3,979.80 2006 $42,100 $3,500 4.95% $1,910.70 $3,821.40 2005 $41,100 $3,500 4.95% $1,861.20 $3,722.40 2004 $40,500 $3,500 4.95% $1,831.50 $3,663.00
maximum pensionable earnings basic exemption rate employee/employer maximum self-employed maximum
Source: www. taxtip.ca
Canada Revenue Agency (CRA) information: T4032 Payroll Deduction Tables - for calculating payroll deductions CPP contribution rates, maximums and exemptions for rates from earlier years. Online payroll calculator, which employers can use for calculating payroll deductions, and employees can use to check their payroll deductions. Revenue Qubec information:
Source deductions of Qubec income tax - for calculating payroll deductions TP-1015.G-V - Guide for Employers: Source Deductions and Contributions
Federal & Provincial/Territorial enhanced dividend tax credit rates

2007 to 2012 Enhanced Dividend Tax Credit Rates as a % of Grossed-up Taxable Dividends Year 2012 2011 2010 2009 2008 2007 Gross up 38% 41% 44% 45% 45% 45% Federal 15.02% 16.44% 17.97% 18.97% 18.97% 18.97% AB 10% 10% 10% 10% 9.0% 8.0% BC 9.76% 10.31% 10.83% 11% 12% 12% MB 11% 11% 11% 11% 11% 11% NB 10.65% 11.24% 11.82% 12% 12% 12% NL 8.65% 9.14% 9.60% 9.75% 6.65% 6.65% NS 7.85% 8.29% 8.71% 8.85% 8.85% 8.85% NT 10.20% 10.78% 11.32% 11.5% 11.5% 11.5% NU 5.51% 5.82% 6.11% 6.21% 6.20% 6.20% ON 6.4% 6.4% 6.4% 7.4% 7.0% 6.7% PE 9.32% 9.84% 10.34% 10.5% 10.5% 10.5% QC 11.9% 11.9% 11.9% 11.9% 11.9% 11.9% SK 11% 11% 11% 11% 11% 11% YT 9.76% 10.31% 10.83% 11% 11% 11%
2007 to 2012 Enhanced Dividend Tax Credit Rates as a % of Actual Dividends Year 2012 2011 2010 2009 2008 Gross up 38% 41% 44% 45% 45% Federal 20.73% 23.17% 25.88% 27.50% 27.50% AB 13.8% 14.1% 14.4% 14.5% 13.05% BC 13.47% 14.53% 15.60% 15.95% 17.40% MB 15.18% 15.51% 15.84% 15.95% 15.95% NB 14.69% 15.85% 17.01% 17.40% 17.40% NL 11.94% 12.88% 13.82% 14.14% 9.64% NS 10.84% 11.69% 12.55% 12.83% 12.83% NT 14.08% 15.19% 16.30% 16.68% 16.68% NU 7.60% 8.20% 8.80% 9.00% 8.99% ON 8.83% 9.02% 9.22% 10.73% 10.15% PE 12.86% 13.87% 14.89% 15.23% 15.23% QC 16.42% 16.78% 17.14% 17.26% 17.26% SK 15.18% 15.51% 15.84% 15.95% 15.95% YT 13.47% 14.53% 15.60% 15.95% 15.95%
2007
45%
27.50%
11.60%
17.40%
15.95%
17.40%
9.64%
12.83%
16.68%
8.99%
9.72%
15.23%
17.26%
15.95%
15.95%
Rates are as known at December 22, 2009. (Source: taxtip.ca)
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Rates for Money Purchase limits, RRSP limits, YMPE, DPSP limits and Defined Benefits limits
Outlined in the following tables are data on Rates for Money Purchase limits, RRSP limits, YMPE, DPSP limits and Defined Benefits limits used to calculate PA, PSPA and PAR.
Rates for Money Purchase limits, RRSP limits, YMPE, DPSP limits and Defined Benefits limits
Outlined in the following tables are data on Rates for Money Purchase limits, RRSP limits, YMPE, DPSP limits and Defined Benefits limits used to calculate PA, PSPA and PAR.
Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 MP limit $11,500 $12,500 $12,500 $13,500 $14,500 $15,500 $13,500 $13,500 $13,500 $13,500 $13,500 $13,500 $13,500 $15,500 $16,500 $18,000 $19,000 $20,000 $21,000 $22,000 $22,450 $22,970 $23,820 RRSP $ limit (Old limits) $11,500 $12,500 $12,500 $13,500 $14,500 $13,500 $13,500 $13,500 $13,500 $13,500 $13,500 $13,500 $14,500 $15,500 $16,500 $18,000 $19,000 $20,000 $21,000 $22,000 $22,450 $22,970 $23,820 YMPE $28,900 $30,500 $32,200 $33,400 $34,400 $34,900 $35,400 $35,800 $36,900 $37,400 $37,600 $38,300 $39,100 $39,900 $40,500 $41,100 $42,100 $43,700 $44,900 $46,300 $47,200 $48,300 $50,100 DPSP limit (1/2 MP limit) $5,750 $6,250 $6,250 $6,750 $7,250 $7,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $6,750 $7,750 $8,250 $9,000 $9,500 $10,000 $10,500 $11,000 $11,225 $11,485 $11,910
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Please note that the MP limit and DPSP limit above for PA purposes are also restricted to 18% of compensation.
Defined Benefit limits 1990 to 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 $1,722.22 $1,833.33 $2,000.00 $2,111.11 $2,222.22 $2,333.33 $2,444.44 $2,494.44 $2,552.22 $2,646.67 1/9 the money purchase limit
What are the income tax rates in Canada for 2012?

These are the rates that an individual will use when completing their 2012 income tax and benefit return. The information may change during the year to reflect updates to the law. Federal tax rates for 2012 Provincial/territorial tax rates for 2012
Federal tax rates for 2012

15% on the first $42,707 of taxable income, + 22% on the next $42,707 of taxable income (on the portion of taxable income over $42,707 up to $85,414), + 26% on the next $46,992 of taxable income (on the portion of taxable income over $85,414 up to $132,406), + 29% of taxable income over $132,406. The chart below reproduces the first calculation that has to be made on page 2 of Schedule 1 of the tax package to calculate net federal tax. Page 1 is used to calculate federal non-refundable tax credits.
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Federal tax on taxable income manual calculation chart Use this column if your taxable income is $42,707 or less Enter your taxable income from line 260 of your return Base amount Line 1 minus line 2 (this amount cannot be negative) Federal tax rate Multiply the amount on line 3 by the tax rate on line 4 Tax on the amount from line 2 Add lines 5 and 6 0 = 42,707 = 85,414 = 132,406 = Use this column if your taxable income is more than $42,707, but not more than $85,414 Use this column if your taxable income is more than $85,414, but not more than $132,406 Use this column if your taxable income is more than $132,406 1
2 3
15% =
22% =
26% =
29% =
4 5
+0
+ 6,406
+ 15,802
+ 28,020
Provincial/territorial tax rates for 2012

Under the current tax on income method, tax for all provinces (except Quebec) and territories is calculated the same way as federal tax. Form 428 is used to calculate this provincial or territorial tax. Provincial or territorial specific non-refundable tax credits are also calculated on Form 428. For complete details, see the provincial or territorial information and forms in your 2012 tax package.
29
Provincial/territorial tax rates (combined chart) Provinces/territories Newfoundland and Labrador Prince Edward Island Rate(s) 7.7% on the first $32,893 of taxable income, + 12.5% on the next $32,892, + 13.3% on the amount over $65,785 9.8% on the first $31,984 of taxable income, + 13.8% on the next $31,985, + 16.7% on the amount over $63,969 8.79% on the first $29,590 of taxable income, + 14.95% on the next $29,590, + 16.67% on the next $33,820, + 17.5% on the next $57,000, + 21% on the amount over $150,000 9.1% on the first $38,190 of taxable income, + 12.1% on the next $38,190, + 12.4% on the next $47,798, + 14.3% on the amount over $124,178 See Income tax rates (Revenu Qubec Web site). 5.05% on the first $39,020 of taxable income, + 9.15% on the next $39,023, + 11.16% on the amount over $78,043 10.8% on the first $31,000 of taxable income, + 12.75% on the next $36,000, + 17.4% on the amount over $67,000 11% on the first $42,065 of taxable income, + 13% on the next $78,120, + 15% on the amount over $120,185 10% of taxable income 5.06% on the first $37,013 of taxable income, + 7.7% on the next $37,015, + 10.5% on the next $10,965, + 12.29% on the next $18,212, + 14.7% on the amount over $103,205 7.04% on the first $42,707 of taxable income, + 9.68% on the next $42,707, + 11.44% on the next $46,992, + 12.76% on the amount over$132,406 5.9% on the first $38,679 of taxable income, + 8.6% on the next $38,681, + 12.2% on the next $48,411, + 14.05% on the amount over $125,771 4% on the first $40,721 of taxable income, + 7% on the next $40,721, + 9% on the next $50,964, + 11.5% on the amount over $132,406
Nova Scotia
New Brunswick
Quebec Ontario
Manitoba
Saskatchewan
Alberta British Columbia
Yukon
Northwest Territories
Nunavut
30
British Columbia - Provincial corporation tax

Federal rates
The basic rate of Part I tax is 38% of your taxable income, 28% after federal tax abatement. For Canadian-controlled private corporations claiming the small business deduction, the net tax rate is 11%. For the other corporations, the net tax rate is decreased as follows: 19% effective January 1, 2009 18% effective January 1, 2010 16.5% effective January 1, 2011 15% effective January 1, 2012
Provincial or territorial rates

Generally, provinces and territories have two rates of income tax - a lower rate and a higher rate.
Federal rates
The basic rate of Part I tax is 38% of your taxable income, 28% after federal tax abatement. For Canadian-controlled private corporations claiming the small business deduction, the net tax rate is 11%. For the other corporations, the net tax rate is decreased as follows: 19% effective January 1, 2009 18% effective January 1, 2010 16.5% effective January 1, 2011 15% effective January 1, 2012
Provincial or territorial rates

Generally, provinces and territories have two rates of income tax - a lower rate and a higher rate. Lower rate-The lower rate applies to the income eligible for the federal small business deduction. One component of the small business deduction is the business limit. Some provinces or territories choose to use the federal business limit. Others establish their own business limit. Higher rate-The higher rate applies to all other income. Provincial and territorial tax rates (except Quebec and Alberta) The following table shows the income tax rates for provinces and territories (except Quebec and Alberta, which do not have corporation tax collection agreements with the CRA).
31
These rates are in effect on January 1, 2011, and may change during 2011.
Province or territory Newfoundland and Labrador Nova Scotia Prince Edward Island New Brunswick Ontario Manitoba Saskatchewan British Columbia Yukon Northwest Territories Nunavut
* 10% effective July 1, 2011 ** 11.5% effective July 1, 2011 *** 2% effective July 1, 2011
Lower rate Higher rate 4% 4.5% 1% 5% 4.5% nil 4.5%*** 2.5% 4% 4% 4% 14% 16% 16% 11%* 12%** 12% 12% 10% 15% 11.5% 12%
Reporting the tax

You can use Schedule 427, British Columbia Corporation Tax Calculation, to help you calculate your British Columbia tax before the application of credits. You do not have to file it with the return. See the schedule for more details. Generally, provinces and territories have two rates of income tax: the lower rate and the higher rate. The lower rate applies to either: The income eligible for the federal small business deduction; or The income based on limits established by the particular province or territory. The higher rate applies to all other income Corporation (Ronak) earned all of its income for 2010 from its permanent establishment in Newfoundland and Labrador. Corporation (Ronak) claimed the small business deduction when it calculated its federal tax payable. The income from active business carried on in Canada was $78,000. The Newfoundland and Labrador lower rate of tax is 4.5%. The higher rate of tax is 12%.
32
Dual tax rates

Generally, provinces and territories have two rates of income tax: the lower rate and the higher rate. The lower rate applies to the income eligible for the federal small business deduction. One component of the small business deduction is the business limit. Some provinces or territories choose to use the federal business limit. Others establish their own business limit. The higher rate applies to all other income. Example: Corporation (Ronak) earned all of its income for 2010 from its permanent establishment in Saskatchewan. Corporation X claimed the small business deduction when it calculated its federal tax payable. The income from active business carried on in Canada was $78,000. The Saskatchewan lower rate of tax is 4.5%. The higher rate of tax is 12%. Corporation (Ronak) calculates its Saskatchewan tax payable as follows: Taxable income Subtract amount taxed at lower rate: Least of lines 400, 405, 410, or 425 of the return, in the small business deduction calculation Amount taxed at higher rate Taxes payable at the lower rate: $78,000 4.5% = Taxes payable at the higher rate: $12,000 12% = Saskatchewan tax payable $90,000
$78,000 $12,000 $ 3,510 $ 1,440 $ 4,950
When you allocate taxable income to more than one province or territory, you also have to allocate proportionally any income eligible for the federal small business deduction. Example 2- Corporation (Amir) has permanent establishments in both Nova Scotia and the Yukon. Its tax year runs from September 1, 2009, to August 31, 2010. Corporation (Amir) claimed the small business deduction when it calculated its federal tax payable. The lower rate of tax for Nova Scotia is 5%, and the higher rate of tax is 16%. To calculate its Nova Scotia income tax, Corporation (Amir) does the following calculations:
33
Taxable income allocated to Nova Scotia (from Schedule 5) Taxable income allocated to the Yukon (from Schedule 5) Total taxable income earned in Canada Least of lines 400, 405, 410, or 425 of the return, in the federal small business deduction calculation Income eligible for the federal small business deduction attributed to Nova Scotia: ($60,000 $90,000) $78,000 = Taxable income earned in Nova Scotia Subtract: Income eligible for the federal small business deduction attributed to Nova Scotia Amount taxed at higher rate Taxes payable at higher rate: $8,000 16% = Taxes payable at lower rate: $52,000 5% = Nova Scotia tax payable
$60,000 $30,000 $90,000 $78,000 $52,000 $60,000 $52,000 $ 8,000 $ 1,280 $ 2,600 $ 3,880
To calculate its Yukon income tax payable, Corporation (Amir) would repeat the same steps, using the rates that apply. For a table that shows the income tax rates as of January 1, 2011. For a table that shows the income tax rates as of January 1, 2010, for the provinces and territories that have corporate tax collection agreements with the federal government.
Tax Brackets
Federal (note)
Rate (%)
$10,382 to $40,970 $40,970 to $81,941 $81,941 to $127,021 $127,021 and higher $11,000 to $35,859 $35,859 to $71,719 $71,719 to $82,342 $82,342 to $99,987 $99,987 and higher
Provincial Surtax
15.00 22.00 26.00 29.00 5.06 7.70 10.50 12.29 14.70
British Columbia
34
Taxable Income
British Columbia (BC) combined federal & provincial tax rates / 2004-2010 Marginal Tax Rates Canadian Dividends Capital Gains Small Business Dividends 20082012
10.03%
Eligible Dividends 2007

(14.89%)
Other Income 20042005

22.05%
2006
first $33,755 over $33,755 up to $36,378 over $36,378 up to $67,511 over $67,511 up to $72,756 over $72,756 up to $77,511 over $77,511 up to $94,121 over $94,121 up to $118,285 over $118,285
2007
2008
2009
2010
2011
2012
20042005
11.03%
2006
10.65%
2007
10.35%
2007
2.83%
2008
2.03%
2009
3.16%
20102012
4.16%
2008
(15.81%)
2009
(14.36%)
2010
(12.59%)
2011
(9.42%)
2012
(6.51%)
2006
21.30%
2007
20.70%
20082010
20.06%
12.58%
12.20%
11.83%
11.35%
6.52%
5.33%
6.46%
7.46%
(10.61%)
(11.99%)
(10.54%)
(8.79%)
(5.70%)
(2.87%)
25.15%
24.40%
23.65%
22.70%
15.58%
15.58%
15.33%
14.85%
15.27%
14.08%
15.21%
16.21%
(0.46%)
(1.84%)
(0.38%)
1.29%
(4.17%)
6.79
31.15%
31.15%
30.65%
29.70%
16.85%
16.85%
16.55%
16.25%
18.33%
17.58%
18.71%
19.71%
3.10%
2.23%
3.68%
5.32%
8.12%
10.65%
33.70%
33.70%
33.10%
32.50%
18.85%
18.85%
18.55%
18.25%
23.33%
22.58%
23.71%
24.71%
8.90%
8.03%
9.48%
11.08%
10.64%
13.12%
37.70%
37.70%
37.10%
36.50%
19.85%
19.85%
19.50%
19.15%
25.71%
24.82%
25.95%
26.95%
11.65%
10.62%
12.07%
13.66%
16.28%
18.64%
39.70%
39.70%
39.00%
38.29%
20.35%
20.35%
20.35%
20.35%
27.83%
27.83%
28.96%
29.96%
14.11%
14.11%
15.56%
17.13%
19.68%
21.97%
40.70%
40.70%
40.70%
40.70%
21.85%
21.85%
21.85%
21.85%
31.58%
31.58%
32.71%
33.71%
18.46%
18.46%
19.91%
21.45%
23.91%
26.11%
43.70%
43.70%
43.70%
43.70%
Marginal tax rate for dividends is a % of actual dividends received (not grossed-up amount).
BC Basic Personal Amount 2004 $8,523 2005 $8,676 2006 $8,858 2007 $9,027 2008 $9,189 2009 $9,373 2010 $11,000 2011 $11,088 2012 $11,354 2004-2006 6.05% Tax Rate 2007 5.70% 2008-2012 5.06%
Source: Dayarayan centre of tax research
35
Ontario (ON) combined federal & provincial tax rates including surtaxes / 2004-2010
Taxable Income Capital Gains 2006 2007 2008 2009 2010 2011 2012 2004-2009
2006 first $34,758 over $34,758 up to $36,378 over $36,378 up to $61,206 first $35,488 over $35,488 up to $37,178 over $37,178 up to $62,485 first $36,020 over $36,020 up to $37,885 over $37,885 up to $63,428 first $36,848 over $36,848 up to $40,726 over $40,726 up to $64,882 first $37,106 over $37,106 up to $40,970 over $40,970 up to $65,345 first $37,774 over $37,774 up to $41,543 over $41,543 up to $66,514 first $39,020 over $39,020 up to $42,707 over $42,707 up to $68,719 2007-09 2010-2012 2004-05 2006 2007-12 15.58% 10.65% 10.53% 10.03% 12.58% 12.20% 12.08% 2006 2007 2008-09 2004-05 2006 2007-09 15.86% 3.55% 3.23% 3.88% 8.36% 7.42% 7.11% (6.69%) (7.13%) (7.71%) (6.23%) (3.93%) (1.089%)
Marginal Tax Rates Canadian Dividends Small Business Dividends 2007 2008 Eligible Dividends 2009 2010 2011 2012
2006 2007-09 2010 2004-05 2006 2007-10 21.30% 21.05% 20.05% 25.15% 24.40% 24.15%
Other Income
(2.2%)
(2.63%)
(3.21%)
(0.32%)
1.85%
3.77%
7.95%
7.52%
6.94%
9.76%
11.72%
13.43%
31.15%
over $61,206 up to $69,517
over $62,485 up to $70,976
over $63,428 up to $72,041
over $64,882 up to $73,698
over $65,345 up to $74,214
over $66,514 up to $75,550
over $68,719up to $78,043
16.49%
16.86%
8.66%
8.14%
7.44%
10.55%
12.5%
14.19%
32.98%
over $69,517 up to $72,102
over $70,976 up to $73,625
over $72,041 up to $74,720
over $73,698 up to $76,440
over $74,214 up to $76,986
over $75,550 up to $78,361
over $78,043 up to $80,963
17.70%
19.88%
12.16%
11.64%
10.94%
14.02%
15.90%
17.52%
35.39%
over $72,102 up to $72,756
over $73,625 up to $74,357
over $74,720 up to $75,769
over $76,440 up to $81,452
over $76,986 up to $81,941
over $78,361 up to $83,880
over $80,963 up to $85,414
19.70%
22.59%
14.49%
13.81%
12.91%
16.49%
18.32%
19.88%
39.41%
over $72,756 up to $118,285
over $74,357 up to $120,887 over $120,887
over $75,769 up to $123,184 over $123,184
over $81,452 up to $126,264 over $126,264
over $81,941 up to $127,021
over $83,880 up to $128,800
over $85,414 up to $132,406
21.70%
27.59%
20.29%
19.61%
18.71%
22.25%
23.96%
25.40%
43.41%
over $118,285
over $127,021
over $128,800
over $132,406
23.20%
31.34%
24.64%
23.96%
23.06%
26.57%
28.19%
29.54%
46.41%
Marginal tax rate for dividends is a % of actual dividends received (not grossed-up amount). ON Basic Personal Amount Tax Rate 2004 2005 2006 2007 2008 2009 2010 2011 2012 2004-2009 2010-12 $8,044 $8,196 $8,377 $8,553 $8,681 $8,881 $8,943 $9,104 $9,405 6.05% 5.05% Source: Dayarayan centre of tax research
36
Federal Income Tax Rates for Income Earned by a Canadian-Controlled Private Corporation (CCPC) 2009-2012 Small Business Income up to $400,000 Description 2009 General corporate rate Federal abatement 38.0 (10.0) 28.0 Small business deduction Rate reduction Refundable tax (17.0) 0.0 0.0 11.0 2010 38.0 (10.0) 28.0 (17.0) 0.0 0.0 11.0 2011 38.0 (10.0) 28.0 (17.0) 0.0 0.0 11.0 2012 38.0 (10.0) 28.0 (17.0) 0.0 0.0 11.0 Active Business Income between $400,000 and $500,000 2009 38.0 (10.0) 28.0 (17.0) 0.0 0.0 11.0 2010 38.0 (10.0) 28.0 (17.0) 0.0 0.0 11.0 2011 38.0 (10.0) 28.0 (17.0) 0.0 0.0 11.0 2012 38.0 (10.0) 28.0 (17.0) 0.0 0.0 11.0 General Active Business Income 2009 38.0 (10.0) 28.0 0.0 (1.3) 0.0 28.0 2010 38.0 (10.0) 28.0 0.0 (10.0) 0.0 28.0 2011 38.0 (10.0) 28.0 0.0 (11.5) 0.0 28.0 2012 38.0 (10.0) 28.0 0.0 (1.3) 0.0 15.0 2009 38.0 (10.0) 28.0 0.0 0.0 6.7 34.7 Investment Income 2010 38.0 (10.0) 28.0 0.0 0.0 6.7 34.7 2011 38.0 (10.0) 28.0 0.0 0.0 6.7 34.7 2012 38.0 (10.0) 28.0 0.0 0.0 6.7 34.7
Comparison of Canada Corporate income tax rates- Federal and BC (2003-2012)

Federal(1) British Columbia(2) 2003 General/M&P/Investment 24.12 13.12 Small business 35.79 Investment - CCPC General/M&P/Investment 13.50 4.50 Small business 2004 2005 22.12 22.12 13.12 13.12 35.79 35.79 13.50 13.50/12.00 4.50 4.50 2006 22.12 13.12 35.79 12.00 4.50 2007 22.12 13.12 35.79 12.00 4.50 2008 19.50 11.00 34.67 12.00/11.00 4.50/3.50/2.50 2009 19.00 11.00 34.67 11.00 2.50 2010 18.00 11.00 34.67 10.50 2.50 2011 16.50 11.00 34.67 10.00 2.50 2012 15.00 11.00 34.67 10.00 2.50
(1) Federal: The income limit for the purposes of the small business deduction (SBD limit) has been $300,000 since 2005. The May 2, 2006 federal budget provided for a rise in the SBD limit to $400,000 effective January 1, 2007. The January 27, 2009 federal budget provides for an increase in the SBD limit to $500,000, effective January 1, 2009. The business limit must be allocated between associated corporations. The SBD is reduced progressively on a straight-line basis for CCPCs when their taxable capital used in Canada varies between $10 million and $15 million. (2) British Columbia: SBD limit: increased to $400,000 for taxation years ending after December 31, 2004. As announced in the February 19, 2008 budget, the General/M&P/Investment rate was reduced to 11% effective July 1, 2008, to 10.5% effective January 1, 2010 and to 10% effective January 1, 2011. In addition, the rate for small businesses was reduced to 3.5% effective July 1, 2008, to 3% effective January 1, 2010 and to 2.5% effective January 1, 2011. On October 23, 2008, the government brought down its Economic Update which proposed a further decrease in the rate for small businesses, from 3.5% to 2.5% effective December 1, 2008. The February 17, 2009 budget confirmed the previously announced rate reductions. In a news release dated April 7, 2009, the B. C. government announced that the SBD limit would be increased from $400,000 to $500,000 on January 1, 2010.
37
Federal year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 General 24.12 22.12 22.12 22.12 22.12 21.00 19.50 18.00 16.50 15.00 SBD 13.12 13.12 13.12 13.12 13.12 11.50 11.00 11.00 11.00 11.00 M&P 22.12 22.12 22.12 22.12 22.12 19.50 19.00 18.00 16.50 15
Comparison of Corporate Tax Rates 2003-2012 British Columbia Top marginal rate Investments Capital General/M&P SBD Dividends (CCPC) Gain 35.79 13.50 4.50 21.85 31.58 35.79 13.50 4.50 21.85 31.58 35.79 13.50 4.50 21.85 31.58 35.79 12.00 4.50 21.85 35.79 12.00 4.50 18.47 31.58 34.67 11.00 4.50 21.85 31.58 34.67 12.00 3.50 21.85 32.71 34.67 10.50 2.50 34.67 10.00 2.50 34.67 10.00 2.50
Other Income 43.70 43.70 43.70 43.70 43.70 43.70 43.70
Federal SBD limite 2005($&300,000),2006($400,000) and 2009 ( $500,000) BC SBD Limite 2005 ($400,000) and 2009 and after ( $500,000) Deferred Income Plans - Maximum Contributions Year RRSP(1) 1995 $14,500 1996-2002 $13,500 2003 $14,500 2004 $15,500 2005 $16,500 2006 $18,000 2007 $19,000 2008 $20,000 2009 $21,000 2010 $22,000 2011 $22,450 2012 $22,970 (1) RRSP: Registered Retirement Savings Plan (2) RPP: Registered Pension Plan
RPP(2) $15,500 $13,500 $15,500 $16,500 $18,000 $19,000 $20,000 $21,000 $22,000 $22,450 $22,970 indexed
38
Table of Canadian Federal Tax Rates for the years 2003- 2012 Portion 2003 1st portion of taxable income $32,183 Applicable Rate 16.00% Next portion of taxable income $32,185 Applicable Rate 22.00% Next portion of taxable income $40,280 Applicable Rate 26.00% On the amount over $104,648 Applicable Rate 29.00% Source: Dayarayan centre of tax research 2004 $35,000 16.00% $35,000 22.00% $43,804 26.00% $113,804 29.00% 2005 $35,595 15.00% $35,595 22.00% $44,549 26.00% $115,739 29.00% 2006 $36,378 15.25% $36,378 22.00% $45,529 26.00% $118,285 29.00% 2007 $37,178 15.00% $37,179 22.00% $46,530 26.00% $120,887 29.00% 2008 $37,885 15.00% $37,884 22.00% $47,415 26.00% $123,184 29.00% 2009 $40,726 15.00% $40,726 22.00% $44,812 26.00% $126,264 29.00% 2010 $40,970 15.00% $40,971 22.00% $45,080 26.00% $127,021 29.00% 2011 $41,544 15.00% $41,535 22.00% $45,791 26.00% $128,800 29.00% 2012 $42,707 15.00% $42,706 22.00% $46,992 26.00% $132,406 29.00%
Table of Individual Income Tax Rates for the Province of British Columbia / 2003- 2012 2003 2004 2005 2006 2007 2008 2009 Portion st 1 portion of taxable income $31,653 $32,476 $33,061 $33,755 $34,397 $35,016 $35,716 Applicable Rate 6.05% 6.05% 6.05% 6.05% 5.70% 5.06% 5.06% Next portion of taxable income $31,655 $32,478 $33,062 $33,756 $34,397 $35,017 $35,717 Applicable Rate 9.15% 9.15% 9.15% 9.15% 8.65% 7.70% 7.70% Next portion of taxable income $9,377 $9,621 $9,794 $10,000 $10,190 $10,373 $10,581 Applicable Rate 11.70% 11.70% 11.70% 11.70% 11.10% 10.50% 10.50% Next portion of taxable income $15,575 $15,980 $16,268 $16,610 $16,925 $17,230 $17,574 Applicable Rate 13.70% 13.70% 13.70% 13.70% 13.00% 12.29% 12.29% On the amount over $88,260 $90,555 $92,185 $94,121 $95,909 $97,636 $99,588 Applicable Rate 14.70% 14.70% 14.70% 14.70% 14.70% 14.70% 14.70% Source: Dayarayan centre of tax research
2010 $35,859 5.06% $35,860 7.70% $10,623 10.50% $17645 12.29% $99,987 14.70%
2011 $36,146 5.06% $36,147 7.70% $10,707 10.50% $17,786 12.29% $100,787 14.70%
2012 $37,013 5,06 $37,015 7.70% $10,965 10.50% $18,212 12.29% $103,205 14.70%
39
BC Combined Federal and Provincial Income Tax Rates for Income Earned by a Canadian-Controlled Private Corporation(CCPC) General Active Small Business Income up to Active Business Income between Effective date Investment Income Business $400,000 $400,000 and $500,000 Income 01-Jan-08 15.5/14.5/13.5% 31.5/30.5% 46.7/45.7% 01-Jan-09 13.50% 22.00% 30.00% 45.70% 01-Jan-10 13.50% 21.50% 28.50% 45.20% 01-Jan-11 13.50% 21.00% 26.50% 26.50% 01-Jan-12 15% 25% 25% 25% BC Provincial Income Tax Rates for Income Earned by a Canadian-Controlled Private Corporation(CCPC) General Active Small Business Income up to Active Business Income between Investment Income Business $400,000 $400,000 and $500,000 Income 4.5/3.5/2.5% 2.50% 2.50% 2.50% 2.50% 11% 10.50% 10% 10% 12/11% 11% 10.50% 10% 10% 12/11% 11% 10.50% 10% 10%
Effective date 01-Jan-08 01-Jan-09 01-Jan-10 01-Jan-11 01-Jan-12
Description Federal British Columbia
Small Business Income (SBI) Thresholds for Canadian-Controlled Private Corporations (CCPCs) 2008-2012 2008 2009 2010 2011-2012 $400,000 $500,000 $500,000 $500,000 $400,000 $400,000 $400,000 $500,000
40
Federal Personal Income Tax Rates / 2004-2012 Marginal Tax Rates Taxable Income Capital Gains 2005 2006 2007 2008 2009 2010 2011 2012 Small Business Dividends 2004
3.33%
Canadian Dividends Other Income Eligible Dividends 20052006

2.08%
2004
8.00%
2005-2012
7.50%
2005-2012
2.08%
2007-2009
(5.75%)
2010
(4.28%)
2011
(2.02%)
2012
(0.03)
2004
16%
20052012
15.00%
first $35,595
first $36,378
first $37,178
first $37,885
first $40,726
first $40,970
First $41,544
First $427.7 Over 427,7to 85,414 Over 85,414 to 132,406 Over 132,406
over $35,595 up to $71,190
over $36,378 up to $72,756
over $37,178 up to $74,357
over $37,885 up to $75,769
over $40,726 up to $81,452
over $40,970 up to $81,941
Over 41,544 to 83,088
11.00%
11.00%
10.83%
10.83%
10.83%
4.40%
5.80%
7.78%
9.65
22%
22.00%
over $71,190 up to $115,739
over $72,756 up to $118,285
over $74,357 up to $120,887
over $75,769 up to $123,184
over $81,452 up to $126,264
over $81,941 up to $127,021
Over 83,088 to 128,800
13.00%
13.00%
15.83%
15.83%
15.83%
10.20%
11.56%
13.49%
15.15
26%
26.00%
over $115,739
over $118,285
over $120,887
over $123,184
over $126,264
over $127,021
Over 128,800
14.50%
14.50%
19.58%
19.58%
19.58%
14.55%
15.88%
17.72%
19.29
29%
29.00%
Marginal tax rate for dividends is a % of actual dividends received (not grossed-up amount). Federal Basic Personal Amount 2004 2005 2006 2007 2008 2009 2010 2011 2012 2004 $8,012 $8,648 $9,039 $9,600 $9,600 $10,320 $10,382 $10,527 $10,822 16.00%
Source: Dayarayan centre of tax research
Tax Rate 2005 & 2012 15.00%
2006 15.25%
41
Total Average Household Expenditure By Province

Year Canada Newfoundland and Labrador Prince Edward Island Nova Scotia New Brunswick Quebec Ontario Manitoba Saskatchewan Alberta British Columbia 2007 69,950 55,010 55,570 59,990 58,210 57,310 76,650 63,300 63,940 85,910 72,620 2008 71,360 57,710 58,710 60,330 58,440 60,480 77,310 63,510 68,280 86,910 73,120 2009 71,120 57,600 56,900 60,870 61,210 60,120 76,580 66,610 69,380 84,980 73,570
Average total expenditure and shares of spending of major categories for provinces and territories, 2009
Average household spending $ Canada Newfoundland and Labrador Prince Edward Island Nova Scotia New Brunswick Quebec Ontario Manitoba Saskatchewan Alberta British Columbia Yukon Northwest Territories Nunavut 71,120 57,600 56,900 60,870 61,210 60,120 76,580 66,610 69,380 84,980 73,570 69,860 82,970 84,440 10.2 11.3 11.8 11.0 10.9 12.0 9.5 9.8 9.1 9.2 10.3 10.7 11.5 17.5 19.8 16.6 19.5 18.9 17.4 18.8 20.3 18.3 17.9 19.0 22.2 19.9 21.5 15.2 Personal taxes1
Food
Shelter
Clothing
Transportation
Shares of spending2 (%) 4.0 4.3 3.7 3.6 3.7 3.9 4.1 3.9 3.8 4.0 3.9 3.7 3.9 5.0 13.7 16.0 14.0 14.6 15.8 13.9 13.4 14.3 15.9 14.0 12.7 12.8 12.2 7.5 20.2 18.5 16.8 18.2 17.5 19.9 21.1 20.2 19.4 22.2 17.9 18.5 21.3 18.7
1. Percentage of spending on personal taxes depends on provincial and federal income tax rates as well as 2. Shares of spending represent the proportions of average household spending.
42
What's Taxable under the HST and What's Not in British Columbia?1
AROUND THE HOUSE GST-taxable before July, 2010 Cleaning Products 5% Laundry Detergent, Fabric Softeners 5% Household Furniture 5% Household Appliances 5% (Refrigerators, Stoves, Washers, Dryers, Freezers, Dishwashers) Pre-packaged Computer Software 5% Books (Including Audio Books) 5% Newspapers 5% Certain School Supplies 5% Magazines 5% Office Supplies and Stationery 5% Landscaping Material (Sod, Topsoil, 5% Rockery) Linens (e.g., Blankets, Towels, 5% Sheets) Tens, Sleeping Bags, Camping 5% Equipment Tools 5% Patio Furniture 5% Rugs and Mats 5% Works of Art, Vases, and Carvings 5% Sewing Machines 5% Vacuum Cleaners 5% Barbeques, Lawnmowers, Snow 5% Blowers, Sprinklers Toys (e.g., Puzzles, Games, Action 5% Figures, Dolls, Playsets) Outdoor Play Equipment (e.g., 5% Swing Sets, Sandboxes, Slides) Arts and Craft Supplies (e.g., Glue, 5% Paper, etc) Building Materials (e.g., Lumber, 5% Concrete Mix, Nails) Energy Star Windows 5% Thermal Insulation, Weather 5% Stripping and Caulking Exterior and Interior Paint 5% Kitchen Utensils 5% Cookware 5% First Aid Kits 5% Smoke Detectors Valued less Than 5% $2502 for Residential Use Other Smoke Detectors 5%
1 2
PST-taxable before July 1,2010 7% 7% 7% 7% 7%2 No PST No PST No PST No PST 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% No PST3 NoPST 7% 7% 7% No PST No PST 7%
Is there a change to the amount of tax payable the HST? No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%)
No (remains 12%) No (remains 5%) Yes (changes to 12%) Yes (changes to 12%) Yes (changes to 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12% No (remains 12% Yes (changes to 12%) Yes (changes to 12%) No (remains 12%) No (remains 12%) No (remains 12%) Yes (changes to 12%) Yes (changes to 12%) No (remains 12%)
- Assumes sales by GST/HST registrants that are not non-profit organization or registered charities, unless otherwise specified. - The Energy Star exemption for residential refrigerators, freezers and clothes washers ended on March 31, 2010. All major household appliances are now subject to PST. 3 - Exemption was scheduled to expire April 2011.
43
AROUND THE HOUSE Household Pets (Including Pet Food) House Plants, Cut Flowers, and Outdoor Ornamental Plants Food Producing Plants and Trees (e.g., Tomato Plants, Plum Tree) Household Moving Services CLOTHING, FOOTWEAR AND ACCESSORIES Adult Clothing and Footwear Children Sized Clothing and Footwear Adult Sized Clothing for Children Children's Cloth Diapers Children's Disposable Diapers Shoe Repair Tailoring Services Dry Cleaning Formal Wear Rentals Used Adult Clothing Purchased for Less Than $100 Watches Jeweller Handbags and Purses Backpacks Shoe Insoles and Laces Sunglasses (Non-prescription) Scarves Umbrellas Belts FOOD AND BEVERAGES Basic Groceries (e.g., Dairy, Meat, Vegetables, Canned Goods) Snack Foods (e.g., Chips, Pop) Restaurant Meals Alcoholic Beverages
GST-taxable before July, 2010 5% 5% 5% 5% GST-taxable before July, 2010 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% GST-taxable before July, 2010 No GST 5% 5% 5%
PST-taxable before July 1,2010 7% 7% No PST No PST PST-taxable before July 1,2010 7% No PST No PST No PST 7% No PST No PST No PST 7% No PST 7% 7% 7% 7% 7% 7% 7% 7% 7% PST-taxable before July 1,2010 No PST No PST No PST 10%
Is there a change to the amount of tax payable the HST? No (remains 12%) No (remains 12%) Yes (changes to 12%) Yes (changes to 12%) Is there a change to the amount of tax payable the HST? No (remains 12%) No (remains 5%) Yes (changes to 12%) No (remains 5%)4 Yes (drops to 5%)5 Yes (changes to 12%) Yes (changes to 12%) Yes (changes to 12%) No (remains 12%) Yes (changes to 12%)6 No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) Is there a change to the amount of tax payable the HST? No HST Yes (changes to 12%) Yes (changes to 12%) Yes (drops to 12%)7
4 5
- For Further detail see http://www.cra-arc.gc.ca/E/pub/gi/gi-063-e.pdf. - For Further detail see http://www.cra-arc.gc.ca/E/pub/gi/gi-063-e.pdf. 6 - All sales used or donated goods mode by a registered charity are exempt from HST. 7 - Although the provincial sales tax rate on liquor is decreasing from 10% to 7% liquor mark-ups are adjusted with the implementation of the HST to generally keep the Liquor Distribution Branch shelf prices constant..
44
AROUND THE HOUSE
Catering and Event Planning Services (e.g., planning, consulting, coordinating and organizing) HOME SERVESES Basic Cable Television Additional or Specialty Cable Television or Satellite Television Cell Phone Municipal Water Home Maintenance Equipment (e.g., Lawn Mowers, Mops) Local Residential Phone Long Distance Telephone Services Repair to Certain Household Appliances (e.g., Stoves, Ovens, Refrigerators, Washers, and Dryers) Repair to Household Electronics (e.g., Televisions and Stereo Equipment) Home Insurance Residential Electricity and Heating (e.g., Natural Gas/Oil)
GST-taxable before July, 2010 5%
PST-taxable before July 1,2010 No PST8
Is there a change to the amount of tax payable the HST? Yes (changes to 12%)9
GST-taxable before July, 2010 5% 5% 5% No GST 5% 5% 5% 5% 5% No GST 5%
PST-taxable before July 1,2010 No PST 7% 7% No PST 7% No PST 7% No PST 7% No PST No PST, but subject to 0.4% ICE10 Fund levy 7% No PST
Is there a change to the amount of tax payable the HST? Yes (changes to 12%) No (remains 12%) No (remains 12%) No HST No (remains 12%) Yes (changes to 12%) No (remains 12%) Yes (changes to 12%)
No (remains 12%)
Internet Access 5% Repair Maintenance or Renovation 5% Services for Real Property (e.g., Plumbing Electrical Wiring) Landscaping Lawn-Care, Private 5% Snow Removal and House Cleaning Computer Hardware Repair Services 5% (e.g., adding or repairing circuit boards or other components Computer Software Repair Services 5% (e.g., virus removal or software installation) ACCOMMODATION AND GST-taxable TRAVEL before July, 2010 Luggage 5% Municipal Public Transit Hotel Rooms
8
No HST Yes (drops to 5%, from 5.4%, after a 7% provincial rebate)11 No (remains 12%) Yes (changes to 12%)
No PST 7%
Yes (changes to 12%) No (remains 12%)
No PST
Yes (changes to 12%)
PST-taxable before July 1,2010 7% No PST 8%
Is there a change to the amount of tax payable the HST? No (remains 12%) No HST Yes (drops to 12%)12
No GST 5%
- PST applies if the caterer provides a taxable service (e.g., setting up and taking down temporary gazebos, tents, and dance floors) or taxable goods that the customer keeps (e.g., flowers or decorations). 9 - Catering provided by a registered charity is exempt from HST. 10 - Innovative Clean Energy 11 - Provincial administered Residential Energy Rebate applies to provincial portion of HST and ICE Fund levy is eliminated. 12 - In certain municipalities there is an additional local hotel room tax of up to 2% for tourism marketing
45
AROUND THE HOUSE Taxis Camping Sites British Columbia Ferry System Domestic Air, Rail and Bus Travel Originating in British Columbia International Air Travel to Continental United States originating in British Columbia (Other Than Day Trips) International Air Travel Other Than to Continental United States originating British Columbia International Rail, Bus or Ship Travel originating in British Columbia (Other Than Day Trips) MOTORIZED VEHICLES Short Term Auto Rentals
GST-taxable before July, 2010 5% 5% No GST 5% 5%
PST-taxable before July 1,2010 No PST No PST No PST No PST No PST
Is there a change to the amount of tax payable the HST? Yes (changes to 12%) Yes (changes to 12%) No HST Yes (changes to 12%) No (remains 5%)
No GST
No PST
No HST
No GST
No PST
No HST
Lease of a Vehicle Other Than an Alternative Fuel Vehicle of Fuel Efficient Vehicle Lease of Alternative Fuel Vehicle and Fuel Efficien Vehicle Purchase of Vehicle Other Than an Alternative Fuel Vehicle or Fuel Efficient Vehicle Purchase of an Alternative Fuel Vehicle and Fuel Efficient Vehicle Child Car Seats and Booster. Seats Auto Insurance Vehicle Parts Vehicle Repair Services Gil Changes Tires Automotive Window Repair
13
5%
5% 5% 5%
5% No GST 5% 5% 5% 5% 5%
PST-taxable Is there a change to the before amount of tax payable July 1,2010 the HST? 7% Plus $ 1.50 Yes (rate remains at 12% per day Passenger but $1.50 per day tax Vehicle Rental eliminated Tax 7% to 10% Depends on previous PST treatment (remains 12% or drops to 12%) Depends on previous PST 7% to 10% (Subject to a PST treatment (remains 12% or drops to 12%) reduction) 13 7% to 10% Depends on previous P5T treatment (remains 12% or drops to 12%) 7% to 10% Depends on previous (subject to a PST treatment PST (remains 12% of reduction) drops to 12%) No PST No (remains 5%)14 No PST No HST 7% No (remains 12%) 7% 7% 7% 7% No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%)
- Please note that purchases and leases of some new alternative fuel vehicles or new fuel efficient vehicles are subject to a partial reduction in the PST payable. For more information on the amounts of this PST reduction and who qualifies, please see Bulletin SST085 Alternative Fuel Vehicles and Fuel Efficient Vehicles, located on the Ministry of Finance's website at http://www.craarc.gc.ca/E/pub/gi/gi-063/gi-063-e.pdf. 14 - For further detail, refer to http://www.cra-arc.gc.ca/E/pub/gi/gi/063-e.pdf.
46
AROUND THE HOUSE Purchase of Used Vehicle from a NonGST Registrant (e.g., car dealer) Purchase of Used vehicle fromali^ff-GST Registrant (e.g., Private seller) Purchase of Boats and Non-Turbin Aricraft from a Non-GST Registrant (e.g., Private Seller) Boats and Non-Turbine Aircraft Gasoline/Diesel VehideOil, Grease, Lubricants antifreeze Outboard Motors Motor Vehicle Parking HOME PURCHASES Niew Homes up to $525,000 New Homes over $525,000 Previously Occupied Homes Legal fees Real Estate Commissions HEALTH AND BEAUTY Health Care Services Offered by a Medical Practitioner (e.g., Medical and Dental Services) 19 Audiologist Services Offered by a practitioner of the Service Chiropractic Services Offered by a practitioner of the Service Physiotherapy Services Offered by a practitioner of the Service Massage Therapy Services Pharmacist Dispensing Fees Over-the-Counter Medications
15
PST-taxable before July 1,2010 7% to 10%
Is there a change to the amount of tax payable the HST? Depends on previous PST treatment (remains 12% or drops to 12%)
No GST No GST 5% 5% 5% 5% 5% GST-taxable before July, 2010 5% 5% No GST 5% 5% GST-taxable before July, 2010 No GST No GST No GST No GST 5% No GST 5%
7% to 10% 7% 7% No PST 7% 7% No PST PST-taxable before July 1,2010 No PST No PST No PST 7% No PST PST-taxable before July 1,2010 No PST No P5T No PST No PST No PST No PST No PST
No HST (12% provincial tax applies) 15 No HST (12% provincial tax applies) No (remains 12%) No (remains 5%)16 No (remains 12%) No (remains 12%) Yes (changes to 12%) Is there a change to the amount of tax payable the HST? No change"17 Yes18 No HST No (remains 12%) Yes (changes to 12%) Is there a change to the amount of tax payable the HST? No HST
No HST No HST No HST Yes (changes to 12%) No HST Yes (changes to 12%)
- HST does not apply. However, British Columbia's 12% tax on private sales of boots, aircraft and vehicles will apply to provide comparable treatment to sales by dealerships. 16 - In For further detail, refer to http://www.cra-arc.gc.ca/E/Pub/gi/gi/061-e.pdf. 17 - BC will provide a rebate of 71.43% of the provincial portion of the HST, to a maximum of $26,250, for new housing purchased as a primary residence. The rebate ensures that, on average, purchasers will pay no more provincial tax due to harmonization-that is, the will pay no more in provincial HST than is currently embedded as PST in the price of a new home. It is estimated that the embedded PST in new homes in BC is, on overage, equal to about 2% of the price. 18 - Purchasers of eligible new homes over $, are eligible for a rebate of $26,250 19 - Other than for cosmetic purposes.
47
AROUND THE HOUSE Prescription Drugs Some Medical Devices Including Walkers, Hearing Aids Prescription Glasses and Contact Lenses Feminine Hygiene Products Adult Incontinence Products Cosmetics Hair Care Products (e.g., Shampoo, Conditioner, Styling Products) Dental Hygiene Products (e.g.. Toothpaste, Toothbrushes, Floss) Vitamins Pill Boxes Sow Dryers Curling Irons Deodorants and Deodorizers Nail Care Products (e.g. Nail Polish, Nail Files) Perfume Shaving Supplies (e.g., Razors, Shaving Cream) Tanning Lotion MEMBERSHIPS, ENTERTAINMENT AND SPORTS EQUIPMENT Admission to Professional Sporting Events (e.g. Hockey, Football and Soccer Games) Movie Tickets MUSIC Lessons Music Instruments Skis and Snowboards Hockey Equipment Steles (e.g., Hockey, Figure, Inline) Safety Helmets for Sports (e.g., Hockey Helmets, Snowboard Helmets, Bike Helmets) 6o!r Clubs Golf Memberships Driving Range Fees Gym and Athletic Memberships
GST-taxable before July, 2010 No GST No GST No GST 5% No GST 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% GST-taxable before July, 2010 5% 5% No GST 5% 5% 5% 5% 5% 5% 5% 5% 5%
PST-taxable before July 1,2010 No PST No PST No PST No PST No PST 7% 7% 7% No PST 7% 7% 7% 7% 7% 7% 7% 7% PST-taxable before July 1,2010 No PST NO P5T No PST 7% 7% 7% 7% No PST 7% No PST No PST No PST
Is there a change to the amount of tax payable the HST? No HST No HST No HST No (remains 5%)20 No HST No (remain5l2%) No (remains 12%) No (remains 12%) Yes (changes to 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) Is there a change to the amount of tax payable the HST? Yes (changes to 12%)
Yes (changes to 12%) No HST No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) Yes (changes to 12%)
No (remains 12%) Yes (changes to 12%) Yes (changes to 12%) Yes (changes to 12%)
20
- For further detail, refer to http://www.cra-arc.gc.ca/E/Pub/gi/gi/061-e.pdf.
48
GST-taxable before July, 2010 Ballet, Karate, Trampoline. Hockey. 5% Soccer Lessons etc. Tickets for Live Theatre 5% Swim Fins and Swimming Goggles Bicycles Bicycle Accessories Purchased Separately Admission to Museums and Art Galleries Music Concerts Sports Equipment (e.g., Footballs, Soccer Ball, Baseball Bats, Free Standing Gymnastics Equipment) Ski Lift Passes Adult Sized Ski Gloves Adult Sized Ski Gloves for Children Children's Sized Ski Gloves Ski Goggles Adult Sized Ski Boots Adult Sized Ski Boots for Children Children's Sized Ski Boots LEASSE AND RENTALS Condo Fees Long-Term Residential Accommodation Hockey Rink and Hall Rentals Equipment Rentals (e.g., Carpet cleaners, power washers) ELECTRONICS Televisions DVD and Blu-ray Players and Accessories Digital Cameras and Camcorders
21
AROUND THE HOUSE
PST-taxable before July 1,2010 No PST No PST 7% No PST 7% No PST No PST 7% No PST 7% No PST No PST 7% 7% No PST No PST PST-taxable before July 1,2010 No PST No PST No PST 7% PST-taxable before July 1,2010 7% 7% 7%
Is there a change to the amount of tax payable the HST? 21 Yes (changes to 12%) Yes22 (changes to 12%) No (remains 12%) Yes (changes to 12%) No (remains 12%) Yes (changes to 12%) Yes (changes to 12%) No (remains 12%)
5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% GST-taxable before July, 2010 No GST No GST 5% 5% GST-taxable before July, 2010 5% 5% 5%
Yes (changes to 12%) No (remains 12%) Yes (changes to 12%) No (remains 5%) No (remains 12%) No (remains 12%) Yes (changes to 12%) Yes (changes to 12%) Is there a change to the amount of tax payable the HST? NO HST23 No HST Yes (Changes to 12%) No (remains 12%) Is there a change to the amount of tax payable the HST? No (remains 12%) No (remains 12%) No (remains 12%)
- These items are subject to HST, although some could be exempt from HST if provided by a public service boody to children 14 and under and underprivileged individuals with a disability. 22 - Subject to HST, although some could be exempt if the maximum admission charged by a public service body to children 14 and under and underprivileged individuals with a disability. 23 - Residential condo association fees to residents are exempt; however, purchase by condominium corporation will be subject to HST, if applicable.
49
AROUND THE HOUSE Cell Phones and Smart Phones CDs, DVDs, and Blu-ray Discs MP3 Players Music or Video MP3s Downloaded Electronically Video Game Consoles Video Games GPS Systems Laptops Desk Top Computers Printers and Fax Machines Stereos and Speakers Cables, Wires, and Connector Projector Screens Headphones Marine Electronics (e.g., Marine Radios, GPS Systems, Speakers) PROFESSIONAL AND PERSONAL SERVICES Child Care Services Legal Aid Funeral Services Coffins and Urns Purchased from Funeral Services Fitness Trainer Hair Stylist/Barber Aesthetician Services (e.g., Manicures, Pedicures, Facials) Legal Services Accounting Services Interior Design Services Wedding Planning Services Veterinarian Services Professional Printed Photographs Furniture, Automotive and Marine Re-upholstery TOBACCO
GST-taxable before July, 2010 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% GST-taxable before July, 2010 No GST No GST 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% GST-taxable before 50
PST-taxable before July 1,2010 7% 7% 7% No PST 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% 7% PST-taxable before July 1,2010 No PST No PST No PST 7% No PST No PST No PST 7% No PST No PST No PST No PST 7% 7% PST-taxable before
Is there a change to the amount of tax payable the HST? No (remains 12%) No (remains 12%) No (remains 12%) Yes (changes to 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) No (remains 12%) Is there a change to the amount of tax payable the HST? No HST No HST Yes (changes to 12%) No (remains 12%) Yes (changes to 12%) Yes (changes to 12%) Yes (changes to 12%) No (remains 12%) Yes (changes to 12%) Yes (changes to 12%) Yes (changes to 12%) Yes (changes to 12%) No (remains 12%) No (remains 12%) Is there a change to the amount of tax payable
AROUND THE HOUSE
GST-taxable before July, 2010 July, 2010 5% 5% 5% 5%
PST-taxable before July 1,2010 July 1,2010 No PST No PST No PST No PST PST-taxable before July 1,2010 No PST No PST
Is there a change to the amount of tax payable the HST? the HST? Yes (changes to 12%) Yes (changes to 12%) Yes (changes to 12%) Yes (changes to 12%) Is there a change to the amount of tax payable the HST? No HST No HST
Cigarettes Cigars Chewing Tobacco Nicotine Replacement Products
BANKING AND INVESTMENTS GST-taxable before July, 2010 Mortgage Interest Costs No GST Most Financial Services No GST
51
References:
1. BC budget 2012,2011,2010 http://www.bcbudget.gov.bc.ca/2010/highlights/2010_Highlights.pdf 2. BC Budget 2009 http://www.bcbudget.gov.bc.ca/2009/estimates/2009_Estimates.pdf 3. http://www.fin.gov.bc.ca/Fed_Prov_MOU_english_July23.pdf 4. Taxation and Economic Efficiency: Results from a Canadian CGE Model, par Maximilian Baylor et Louis Beausjour, Canadian federal Finance Minister 2004 5. Vaughn Palmer Ambitious reforms by Liberal governments to be eclipsed by HST, Vancouver Sun, July 28th, 2009 6. from [[2][Public account of Canada]], stating at $29.9 billions the 5% GST revenue for whole Canada for the exercise 2007/2008, and considering the contributively part of the British Columbia is of 15.4% in 2003 according to http://www.parl.gc.ca/information/library/PRBpubs/prb0610-e.htm, , 29.9*(15.7%)= $4.6Billions not including the BC GDP growth 7. http://www2.news.gov.bc.ca/news_releases_2009-2013/2009PREM0017-000141.htm 8. Taxation and Economic Efficiency: Results from a Canadian CGE Model, par Maximilian Baylor et Louis Beausjour, Canadian federal Finance Minister 2004 9. http://www.fraserinstitute.org/Commerce.Web/product_files/JulAug06ffTaxCuts.pdf 10. http://www.vancouversun.com/business/good+business+business+should+tell/187258 2/story.html 11. http://www.theprovince.com/news/Revenue+neutral+levy+could+pull+200m/186476 6/story.html 12. http://www.strategicthoughts.com/record2009/HSTbase.html 13. Alberta Budget Eliminates Health-Care Premiums 14. Canada Revenue Agency 15. http://www.vancouver-real-estate-direct.com/HST/index.html) 16. http://vancouver.ca/aboutvan.htm 17. OECD, 2005 data 18. Deloitte country guide Canada tax 19. PMG Canada tax 20. http://www.Taxtips.ca 21. https://hst.blog.gov.bc.ca/wp-content/uploads/2010/05/GST_PST_HST_List_v04.pdf
52
DMC
Dayarayan Management & Consulting LTD
is a Canadian company which provides full company services including company registration, management, and financial services. With our head quarter in Vancouver, we can even provide Canadian bank account opening and other confidential services which protect our clients. Our Services: Worldwide Companies Registration Bank Account Opening Annual Renewal, Accounting and Auditing etc HK Company: Services include Annual Return, Accounting and internal Auditing, Tax return, Change of Shareholder(s) or Director(s), Company Suspension or Termination, etc. Investment Consulting Management Consultancy Company formation(IBC , BVI) Management of offshore entities Tax Advice - Canada & International Representation, Nominee & Trustee Services Company Secretarial & Legal Services Administration & Professional Services Banking Support Services Accounting Services CONTACT USDayarayan Management & CONSULTING (LTD) 809-168 Esplanade East, North Vancouver V7L 4X8 Vancouver. British Columbia. Canada Tel: 1604-9833704 Cell: 778-861-1340 Cell: 17788295504 Website: www.dayarayan.ca Email: info@dayarayan.ca Dayarayan.ca@gmail.com
53
Dayarayans publication in English:

1234567Canada Taxation 2012 Canada Taxation 2011 Canada Taxation 2010 Canada Taxation 2009 Doing business in Iran Canada Tax Guide 2008 World Economy Index 2007
Find US:
1. www.dayarayan.net 2. www.dayarayan.ca/portal 3. www.dayarayan.info 4. icaew.com/index.cfm/route/156616/icaew_ga/en/Library/... 5. dayarayanmanagementconsultingltd.blogspot.com 6. www.estandardsforum.org/iran/.../international-standards-on-auditing 7. www.docstoc.com/docs/11040469/tax-guide-in-Canada 8. dayarayanmanagementconsultingltd.blogspot.com/.../canada-tax-revenue.html 9. www.iadvisory.gov.sg/upload/Doing_Business_in_Iran.pdf 10. http://www.taxtips.ca/busdir/businessconsulting/bc.htm 11. http://tarazaccounting.blogspot.com/ 12. www.worldwide-tax.com/iran/iran_tax.asp 13. http://dayarayanias.blogfa.com/ 14. http://dayarayanmanagementconsultingltd.blogspot.com/2010/03/hst-in-britishcolunmbia-2010.html 15. http://dayarayanvancouver.blogspot.com/2009/11/bc-property-tax.html 16. www.linkedin.com/pub/dayarayan-auditing-dayarayan/4/a5a/782 17. finance.groups.yahoo.com/group/Daya-accountants 18. iadvisory.gov.sg/upload/Establishing_a_Joint_Stock_Compan 19. ifac.org/PAIB/relevant_links.php?sort=title&...+Standards 20. totallytax.com/.../Middle_East_Tax_Advisers 21. www.prweb.com/releases/2006/05/prweb383409.htm 22. http://www.iacpa.ir/tabid/160/articleType/ArticleView/articleId/333/Doing-Business-inIran.aspx 23. cnv.org/c/DATA/2/19/2010 BUSINESS LICENCES ISSUED ALPHA 24. http://www.cnv.org/c/DATA/2/19/2010%20BUSINESS%20LICENCES%20ISSUED%2 0-%20ALPHABETICAL.PDF 25. www.doingbusiness.org/LocalPartners/SearchResults.aspx?economyid=91
54

Canada Tax Sumury 2012

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Canada Tax Sumury 2012

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This booklet is intended to provide useful information to assist businesses in Canada taxation and new harmonized sales tax

Welcome to the City of Vancouver

Facts about Vancouver

Canadian federal marginal tax rates of taxable income 1998-2012

$10,527 - $42,707 %15

$42,707- $85,414 %22

$85,414-132,406 $128,800 %22

over $132,406 %29

Income not taxed

Goods & Services Tax

Harmonized Sales Tax

Provincial Sales Taxes

Rate Combined fed. (%) /prov. rate (%)

Note food, fuel, children's sized clothes and footwear as

non-alcoholic portion of a restaurant meal is not taxed.

federal 5% GST. Effectively 7.875%

federal 5% GST. Effectively 10.5%

The HST breakdown:

Before January 1, 2008, and after June 30, 2006

On or after April 1, 1997, and before July 1, 2006

Before April 1, 1997

5% 12% 5% 13% 13% 5% 15%* 5% 13% 5% 5% 5%

Actual $4,293 $2,941 $2,000 Actual

Actual $4,362 $2,988 $2,032 Actual

Actual $6,126 $3,574 $2,075 Actual

Actual $6,230 $3,635 $2,110 Actual

Actual $6,392 $3,729 $2,165 Actual

Actual $6,507 $3,796 $2,204 Actual

Actual $6,644 $3,876 $2,250 Actual

Actual $6,770 $3,950 $2,293 Actual

Actual $6,892 $4,021 $2,334 Actual

Actual $7,030 $4,101 $2,381 Actual

Actual $7,058 $4,118 $2,391 Actual

Actual $7,114 $4,151 $2,410 Actual

Actual $7,285 $4,250 $2,468 Actual

yes yes yes

2000 $1,637 $2,000

2001 $1,633 $2,032

2002 $1,698 $2,075

2003 $1,727 $2,110

2004 $1,772 $2,165

2005 $1,804 $2,204

2006 $1,842 $2,250

2007 $10,445 $1,877 $2,293

2008 $10,643 $1,911 $2,334

2009 $10,909 $1,949 $2,381

2010 $10,975 $1,957 $2,391

2011 $11,128 $1,972 $2,410

2012 11,440 $2,020 $2,468

Tax Credits - Low Income Climate Action Tax Credit

Claiming the Credit

Amounts relating to non-refundable tax credits

Refundable medical expense supplement

National Child Benefit (NCB) supplement

Childrens Special Allowances (CSA)

Income exclusion (max. per month)

Threshold amount relating to cost of eligible tools

227 120 120 7,377 29,618

232 122 122 7,539 30,270

237 125 125 7,705 30,936

242 127 127 7,851 31,524

248 130 130 8,047 32,312

250 131 131 8,096 32,506

253 133 133 8,209 32,961