TORONTO — Ontario is cutting the small business Corporate Income Tax (CIT) rate by 8.7 per cent, reducing the rate to 3.2 per cent.
The tax cut will deliver up to $1,500 in annual savings to more than 275,000 businesses including family-owned shops to start-ups, states a Ministry of Finance release, adding overall, Ontario’s small businesses are saving $2.3 billion in 2020 through government actions such as cancelling the cap-and-trade carbon tax, supporting Workplace Safety & Insurance Board premium reductions, providing Ontario income tax relief and other measures. The government has also taken over 100 actions to cut red tape for businesses which, along with other measures, are expected to save businesses $400 million in compliance costs.
The government will continue to consult with industry and business leaders to inform its Small Business Success Strategy.
“Ontario has tremendous opportunity and potential, and we are working to create the conditions for job creators to grow and succeed. An important part of our plan is to reduce the tax rate for small businesses, as they play a vital role in the economy,” said Minister of Finance Rod Phillips, in a statement.