Ontario's tax reforms are making Ontario a better place to do business. Hear what people have to say about the results they're seeing from Ontario's tax plan.
Cuts to Business Taxes
Ontario is providing over $4.8 billion in tax relief over three years, including Corporate Income Tax (CIT) cuts starting July 1, 2010:
- The general statutory CIT rate was lowered to 12 per cent from 14 per cent and will be further reduced to 10 per cent by 2013
- The CIT rate on taxable income from manufacturing and processing, mining, logging, farming and fishing was lowered to 10 per cent from 12 per cent
- The small business CIT rate was cut to 4.5 per cent from 5.5 per cent
- The small business deduction surtax was eliminated
- More small- and medium-sized businesses are exempt from the Corporate Minimum Tax, and the rate was cut to 2.7 per cent from 4 per cent.
This is in addition to eliminating the capital tax. Capital tax was already eliminated for firms primarily engaged in manufacturing and resource activities in 2007. For all other businesses, capital tax rates were cut by 33 per cent on January 1, 2010 and then capital tax was completely eliminated on July 1, 2010.
Reduced Business Costs
- Most businesses receive input tax credits for sales tax they pay on many of their purchases and capital investments, providing significant savings.
- The HST will result in the removal of about $4.5 billion a year in embedded sales taxes, when fully phased in.
- Businesses also save from the elimination of embedded tax in supplier prices.
- Harmonizing our tax systems means one set of forms, one point of contact and savings of more than $500 million annually in compliance costs.
