WHITEHORSE – The Yukon government will amend the Income Tax Act to assist both individual and corporate taxpayers, Premier and Minister of Finance Dennis Fentie announced today.
“These tax amendments are part of the government’s ongoing efforts to reduce the tax burden as well as encourage investments in the private sector and diversify the economy for the benefit of Yukoners,” Fentie said. “During the 2011-12 fiscal year the change will result in an approximate tax saving of $490,000 for Yukon taxpayers.”
The small business threshold will increase from $400,000 to $500,000 in order to match changes to the federal small business threshold. The amendment to the personal income dividend tax credit will ensure that Yukon taxpayers will not pay more tax on dividends than on income from other sources. These amendments will also clarify and simplify the process of filing tax returns and will match recent amendments to the federal tax act.
“Dividends are an important source of income for a large number of Yukoners and without integrating Yukon’s personal and corporate tax regimes, Yukon taxpayers in all tax brackets would be required to pay more on dividend income,” Fentie added.
The amendments to Yukon’s Income Tax Act will be tabled during the fall sitting of the Yukon Legislative Assembly.