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13 March 2023 Canada: Yukon issues budget 2023/24
On 2 March 2023, Yukon Finance Minister Sandy Silver tabled the territory’s fiscal 2023/24 budget. The budget contains no new taxes and no income tax increases. The Minister anticipates a surplus of CA$43.9 million1 for 2022/23 and projects a surplus of $48.2 million for 2023/24 and surpluses for each of the next two years ($58.8 million for 2024/25 and $45.1 million for 2025/26).
2 The federal corporate income tax rates for manufacturers of qualifying zero-emission technology are reduced to 7.5% for eligible income otherwise subject to the 15% federal general corporate income tax rate or 4.5% for eligible income otherwise subject to the 9% federal small-business corporate income tax rate. 3 An additional tax applies to banks and life insurers at a rate of 1.5% on taxable income (subject to a $100 million exemption to be shared by group members), effective for taxation years ending after 7 April 2022 (prorated for taxation years straddling this effective date).
For taxable income in excess of $165,430, the 2023 combined federal-Yukon personal income tax rates are outlined in Table C.
2 The federal and territorial basic personal amounts comprise two elements: the base amount ($13,521 for 2023) and an additional amount ($1,479 for 2023). The additional amount is reduced for individuals with net income in excess of $165,430 and is fully eliminated for individuals with net income in excess of $235,675. Consequently, the additional amount is clawed back on net income in excess of $165,430 until the additional tax credit ($222 federally and $95 in Yukon) is eliminated; this results in additional federal and territorial income tax (e.g., 0.32% and 0.13%, respectively, on ordinary income) on taxable income between $165,431 and $235,675. In keeping with the existing indexation link with changes to the Consumer Price Index in the Tobacco Tax Act, the tobacco tax rates have increased from 31 cents to 32 cents per cigarette and from 31 cents to 32 cents per gram of tobacco (other than cigarettes and cigars), as of 1 January 2023. Linda Tang | linda.y.tang@ca.ey.com Mark Kaplan | mark.kaplan@ca.ey.com Phil Halvorson | phil.d.halvorson@ca.ey.com Terri McDowell | terri.mcdowell@ca.ey.com Trevor O’Brien | trevor.obrien@ca.ey.com Albert Anelli | albert.anelli@ca.ey.com Angelo Nikolakakis | angelo.nikolakakis@ca.ey.com Brian Mustard | brian.mustard@ca.ey.com Nicolas Legault | nicolas.legault@ca.ey.com Nik Diksic | nik.diksic@ca.ey.com Philippe-Antoine Morin | philippe-antoine.morin@ca.ey.com Mark Coleman | mark.coleman@ca.ey.com Liza Mathew | liza.mathew@ca.ey.com
Document ID: 2023-5301 | ||||||||||||||||||||||||||||||||||||||||||||