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07 March 2022 Canada: Yukon issues budget 2022/23 On 3 March 2022, Yukon Premier and Finance Minister Sandy Silver tabled the territory’s fiscal 2022/23 budget. The budget contains no new taxes and no tax increases. The Minister anticipates a surplus of CA$25.5 million1 for 2021/22 and projects a surplus of $39.5 million for 2022/23 and surpluses for each of the next two years ($73.5 million for 2023/24 and $63.3 million for 2024/25).
** The 2021 federal budget proposed to temporarily reduce the federal corporate income tax rate for qualifying zero-emission technology manufacturers by 50% (i.e., to 7.5% for eligible income otherwise subject to the 15% general corporate income tax rate or 4.5% for eligible income otherwise subject to the 9% small-business corporate income tax rate), applicable for taxation years beginning after 2021. The reduced tax rates are proposed to be gradually phased out for taxation years beginning in 2029 and fully phased out for taxation years beginning after 2031.
For taxable income in excess of $155,625, the 2022 combined federal-Yukon personal income tax rates are outlined in Table C.
** The federal and territorial basic personal amounts comprise two elements: the base amount ($12,719 for 2022) and an additional amount ($1,679 for 2022). The additional amount is reduced for individuals with net income in excess of $155,625 and is fully eliminated for individuals with net income in excess of $221,708. Consequently, the additional amount is clawed back on net income in excess of $155,625 until the additional tax credit ($252 federally and $107 in Yukon) is eliminated; this results in additional federal and territorial income tax (e.g., 0.38% and 0.16%, respectively, on ordinary income) on taxable income between $155,626 and $221,708.
Document ID: 2022-5238 | |||||||||||||||||||||||||||||||||||||||||||||