Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

March 27, 2019
2019-5421

Canada: Nova Scotia issues budget 2019/20

Executive summary

On 26 March 2019, Nova Scotia Minister of Finance and Treasury Board Karen Casey tabled the province’s fiscal 2019/20 budget. The budget contains several tax measures affecting individuals and corporations. The budget contains no new taxes and no tax increases.

The Minister anticipates a surplus of CA$33.6 million1 for 2019/20 and projects surpluses for each of the next four years.

The 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.
  • Nova Scotia’s 2019 corporate tax rates are summarized in Table A.
Table A – 2019 Nova Scotia corporate tax rates
 
2019
Nova Scotia
Federal and Nova Scotia combined

Small-business tax rate*,**

3.00%

12.00%

General corporate tax rate

16.00%

31.00%

* 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.

Other business tax measures

The Minister also proposed the following business tax measures:

  • Effective 1 April 2019, the province intends to make the Innovation Equity Tax Credit (IETC), which will be more narrowly focused and will phase out the existing equity tax credit, available to corporations. The IETC was previously only available to individuals. The province is proposing a tax credit rate for corporate investments of 15% to a maximum investment of $500,000.
  • Effective 1 April 2019, the province intends to introduce a Venture Capital Tax Credit available to both individual and corporate investors who invest in a venture capital corporation or fund. The tax credit rate will be 15%.

Personal tax

Personal income tax rates

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

The 2019 Nova Scotia personal tax rates are summarized in Table B.

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

$0 to $29,590

$29,591 to $59,180

$59,181 to $93,000

$93,001 to $150,000

Above $150,000

8.79%

14.95%

16.67%

17.50%

21.00%

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

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

$147,668 to $150,000

46.50%

31.23%

39.65%

$150,001 to $210,371

50.00%

36.06%

43.67%

Above $210,371

54.00%

41.58%

48.27%

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

Personal tax credits

This budget proposes changes to the following personal credits/amounts:

  • Effective 1 April 2019, the province intends to introduce a Venture Capital Tax Credit available to individual investors who invest in a venture capital corporation or fund. The tax credit rate will be 15%.

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), Halifax
  • Darrin Talbot | darrin.talbot@ca.ey.com
  • Jennifer Palmer | jennifer.l.palmer@ca.ey.com

ATTACHMENT

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2023, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct