The BC Budget (tabled on February 17, 2015) contained no major
announcements and no general corporate or personal tax rate
changes. Nonetheless, it provides opportunity for personal tax
planning for high rate tax payers, and extends useful assistance to
early stage businesses in BC.
The combined top rate of BC tax is 45.8% (16.8% of BC tax + 29%
of Federal tax). The top rate applies to income over $150,000. It
was introduced by the 2013 Budget, to apply for 2014 and 2015, and
at the time was described as a temporary measure. Its repeal is
automatic (by virtue of a mechanism built in to the 2013 Budget
Measures Implementation Act), but there was always concern
that the province would retain the top rate for 2016 and later
years by bringing in new legislation.
In delivering the 2015 Budget, the Minister of Finance confirmed
that the top rate will revert to 43.7% in 2016. Assuming that this
is the case, it suggests that top rate taxpayers should
Deferring recognition of gains and income items to 2016
Recognizing losses where possible in 2015
Carrying back losses from 2016 and later years to 2015 or
As ever, such planning requires careful consideration of a
taxpayer's particular circumstances to avoid unexpected
Small Business Venture Capital Tax Credit
The budget for the small business venture capital tax credit is
increased by $3 million for direct investments in eligible new
corporations. This allows for up to $10 million of additional
equity financing for 2015 (since the tax credit is 30%).
Tax Credits Extended
The following tax credits have all been extended:
BC Training Tax Credit – to the end of 2017
BC Mining Flow-Through Share Tax Credit – to the end of
BC Interactive Digital Media Tax Credit – to August 31,
Digital Animation or Visual Effects Tax Credit – expanded
to include post-production, for productions starting principal
photography on or after March 1, 2015.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).