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11 March 2019

Canada: Yukon issues budget 2019/20

Executive summary

On 7 March 2019, Yukon Finance Minister Sandy Silver tabled the Yukon’s fiscal 2019/20 budget. The budget contains no new taxes other than the federal cannabis excise tax and the federal carbon levy, both of which had already been announced, and contains no increases to existing taxes.

The Minister anticipates a deficit of CA$7.1m1 for 2018/19, and projects a deficit of $5.9m for 2019–20. Return to a surplus is expected for 2020/21.

Following is a brief summary of the key tax measures.

Detailed discussion

Business tax measures

Corporate tax rates

No changes are proposed to the corporate tax rates or the $500,000 small-business limit.

Yukon’s 2019 corporate tax rates are summarized in Table A.

Table A – Corporate tax rates
 
2019
 
Yukon
Federal and Yukon combined

Small business manufacturing and processing tax rate*, **

1.50%

10.50%

Small-business tax rate*, **

2.00%

11.00%

General manufacturing and processing tax rate

2.50%

17.50%

General corporate tax rate

12.00%

27.00%

* The small-business rate is based on a 31 December year-end.

** The federal small-business rate was reduced from 10.0% to 9.0% effective 1 January 2019.

Personal tax

Personal income tax rates

The budget does not include any changes to personal income tax rates.

The 2019 Yukon personal tax rates are summarized in Table B.

Table B – 2019 Yukon personal tax rates
First bracket rate
Second bracket rate
Third bracket rate
Fourth bracket rate
Fifth bracket rate

$0 to $47,630

$47,631 to $95,259

$95,260 to $147,667

$147,668 to $500,000

Above $500,000

6.40%

9.00%

10.90%

12.80%

15.00%

For taxable income in excess of $147,667, the 2019 combined federal-Yukon personal income tax rates are outlined in Table C.

Table C – Combined 2019 federal and Yukon personal tax rates
Bracket
Ordinary income*
Eligible dividends
Non-eligible dividends

$147,668 to $210,371

41.80%

20.37%

35.04%

$210,372 to $500,000

45.80%

25.89%

39.64%

Above $500,000

48.00%

28.92%

42.17%

* The rate on capital gains is one-half the ordinary income tax rate.

Endnote

1. Currency references in this Alert are to CA$.

For additional information with respect to this Alert, please contact the following:

Ernst & Young LLP (Canada), Toronto
  • Linda Tang | linda.y.tang@ca.ey.com
  • Mark Kaplan | mark.kaplan@ca.ey.com
  • Phil Halvorson | phil.d.halvorson@ca.ey.com
  • Terry McDowell | terry.mcdowell@ey.com
Ernst & Young LLP (Canada), Montréal
  • Albert Anelli | albert.anelli@ca.ey.com
  • Angelo Nikolakakis | angelo.nikolakakis@ca.ey.com
  • Nicolas Legault | nicolas.legault@ca.ey.com
  • Nik Diksic | nik.diksic@ca.ey.com
Ernst & Young LLP (Canada), Calgary
  • Mark Coleman | mark.coleman@ca.ey.com
Ernst & Young LLP (Canada), Vancouver
  • Eric Bretsen | eric.r.bretsen@ca.ey.com
Ernst & Young LLP, Canadian Tax Desk, New York
  • Trevor O’Brien | trevor.m.obrien1@ey.com

ATTACHMENT

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