globaltaxnews.ey.comSign up for tax alert emailsForwardPrintDownload | |||||||||||||||||||||||||||||||||||||||||||||
08 March 2021 Canada: Yukon issues budget 2021–22 On 4 March 2021, Yukon Finance Minister Sandy Silver tabled the territory’s fiscal 2021–22 budget. The budget contains no new taxes and no tax increases. The Minister anticipates a deficit of CA$6.7 million1 for 2020–21 and projects a deficit of $12.7 million for 2021–22.
** Yukon reduced its small-business rate to 0.00% effective 1 January 2021. For 2020, a rate of 1.50% applied to M&P income eligible for the small business deduction (SBD), while a rate of 2.00% applied to non-M&P income eligible for the SBD.
For taxable income in excess of $151,978, the 2021 combined federal-Yukon personal income tax rates are outlined in Table C.
** The federal and territorial basic personal amounts comprise two basic elements: the existing personal amount ($12,421 for 2021) and an additional amount ($1,387 for 2021). The additional amount is gradually phased out for individuals with taxable income in excess of $151,978 and is fully eliminated for individuals with taxable income in excess of $216,511. Consequently, the additional amount is clawed back on taxable income in excess of $151,978 until the additional tax credit ($208 federally and $89 in Yukon) is eliminated; this results in additional federal and territorial income tax (e.g., 0.32% and 0.14%, respectively, on ordinary income) on taxable income between $151,979 and $216,511.
Liza Mathew | liza.mathew@ca.ey.com
Document ID: 2021-5273 | |||||||||||||||||||||||||||||||||||||||||||||