B.C. Small Business tax threshold change
B.C. Ministry of Finance announced today that more businesses will be able to grow and recover through the expanded access to the small business tax rate here in B.C. Consultations with business leaders and experts in the field, showed that the previous $15 million taxable amount limited the potential for small and medium sized businesses to expand upon their potential. Now these businesses will have access to the small business tax rate until their taxable capital is $50 million or more.
Previously, access to the small business tax rate was gradually reduced when the taxable capital of businesses was more than $10 million. Access to the small business tax rate ended when businesses had $15 million or more of taxable capital. With the change, access to the small business tax rate will be gradually reduced when businesses have between $10 million and $50 million in taxable capital.
Growing B.C. businesses will be able to scale up by remaining eligible for the B.C. small business tax rate for longer, as the tax rate will not phase out until the $50-million taxable capital threshold ceiling. The change will benefit a wide range of businesses but will largely support those that are capital intensive.