Canada: Status of 2021 budget bill and tax measures (Prince Edward Island)
Tax measures as introduced in the province's 2021 budget
Prince Edward Island
Prince Edward Island's budget implementation bill received first reading on 26 October 2021.
The implementation bill (Bill 37) includes tax measures as introduced in the province's 2021 budget—including a decrease in the small business corporate income tax rate to 1% (from 2%) effective 1 January 2022.
Bill 37 also includes individual (personal) tax measures as announced in the province's 2021 budget, and these would:
- Increase the basic personal income tax exemption amount to $11,250* (from $10,500), effective 1 January 2022
- Increase the low-income threshold to $20,000 (from $19,000), effective 1 January 2022
In addition, the bill includes a proposed decrease to the provincial non-eligible dividend tax credit to 1.30% (from 1.96%), effective 1 January 2022. As a result, the combined top marginal rate on non-eligible dividends for Prince Edward Island residents in 2022 would increase to 47.04% (from 46.22%).
Read a November 2021 report prepared by the KPMG member firm in Canada
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.