Increase in corporate tax rates – Personal Service Businesses
November 24th, 2011
On October 31, 2011 the Department of Finance (Canada) announced a proposed increase in the corporate rates for Personal Service Business corporations (PSBs). Â To summarize very briefly, a PSB corporation is a corporation set up to provide employment services. Â Here is a good article that provides a description of a PSB.
Under the proposed changes, the corporate tax rate for a PSB will increase by a dramatic 13 percentage points (from 25% to 38% federally).
If you are the owner of a PSB, you’ll want to be prepared. Â If you are considering setting up a PSB, think about it carefully.
Filed under: Business tax by David Boese No Comments »