The Honourable Jim Flaherty, Minister of Finance, today highlighted tax relief measures that will benefit Canadians in 2010.
"These measures build on our Government’s record of tax relief to help businesses remain competitive globally and allow Canadians to keep more of their hard-earned money," said Minister Flaherty. "The actions taken by our Government since 2006 will reduce the taxes that Canadians and businesses pay by $220 billion over 2008–09 and the following five fiscal years."
Some of the measures coming into effect in 2010 include the following:
- A reduction from 19 per cent to 18 per cent of the federal general corporate income tax rate.
- The introduction of an increase from 10 per cent to 25 per cent in the pension surplus threshold under the Income Tax Act, which applies to both federally and provincially regulated defined benefit pension plans. The new surplus threshold will apply to employer contributions made to Registered Pension Plans after 2009 in respect of employment periods after 2009.
- Changes associated with the Fifth Protocol to the Canada-United States Tax Convention, including the final step in the phased elimination of withholding tax on non-arm’s length interest paid between the two countries—the rate drops from 4 per cent in 2009 to zero per cent on January 1, 2010.
"As we prepare to enter the second phase of our Economic Action Plan, measures introduced by our Government since coming to office will help Canadians and businesses as they recover from the global economic recession and will help foster a stronger economic recovery," said Minister Flaherty.
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For further information, media may contact:
Annette Robertson
Press Secretary
Office of the Minister of Finance
613-996-7861
Jack Aubry
Media Relations
Department of Finance
613-996-8080
