WHITEHORSE – Premier and Finance Minister Dennis Fentie has announced that the small business tax deduction limit will increase to $400,000 from $300,000, effective January 1, 2007.
"Beginning in the New Year, companies eligible for the small business corporate tax rate of four per cent will have an additional $100,000 of income that qualifies for the reduced rate," Fentie said.
Raising the small business deduction limit by 33 per cent, coupled with the lower four per cent small business corporate tax rate, enables smaller businesses to keep a larger portion of capital to further their business interests.
This corporate tax saving complements the personal income tax reductions tabled on November 27. These recent tax reductions are designed to ensure that individuals and corporations will have more disposable income that will circulate back into the business sectors and help develop our economy.
"The private sector is very important to the future of our territory," Fentie added. "Our government is proud to announce this corporate tax measure along with the recently tabled personal tax reductions."
The small business deduction is an example of the Yukon government’s continued support for a strong, diversified private-sector economy.
– 30 –