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March 11, 2019
Canada: Yukon issues budget 2019/20
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.
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
* 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 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
For taxable income in excess of $147,667, the 2019 combined federal-Yukon personal income tax rates are outlined in Table C.
Table C – Combined 2019 federal and Yukon personal tax rates
* The rate on capital gains is one-half the ordinary income tax rate.
1. Currency references in this Alert are to CA$.
For additional information with respect to this Alert, please contact the following:
Ernst & Young LLP (Canada), Toronto
Ernst & Young LLP (Canada), Montréal
Ernst & Young LLP (Canada), Calgary
Ernst & Young LLP (Canada), Vancouver
Ernst & Young LLP, Canadian Tax Desk, New York