ARCHIVED - 5001-PC Information for Residents of Newfoundland and Labrador

All the information you need to calculate your Newfoundland tax and credits is on Form NF428, Newfoundland Tax and Credits. You will find two copies of the form in this package. Attach a completed copy of Form NF428 to your return.

What's new for 2000?

The basic income tax rate for Newfoundland and Labrador has been reduced to 62% of the basic federal tax. Modifications have also been made to the surtax.

You can claim the Newfoundland equity tax credit if you made an investment in eligible shares in 2000 or in the first 60 days of 2001.

Newfoundland programs for low-income individuals and families

Newfoundland Harmonized Sales Tax Credit (NHSTC)

The NHSTC is a tax-free payment to help people with low incomes who may be affected by the harmonized sales tax (HST).

Under the NHSTC, individuals or families with a net income of $15,000 or less receive an annual amount of $40 per adult and $60 for each child under 19. The amount is reduced if family net income is more than $15,000. To receive payments under the NHSTC, you (or your spouse) should apply for the GST/HST credit on your (or your spouse's) tax return. Benefits will be combined with the October payment of the federal GST/HST credit.

Newfoundland Seniors' Benefit (NSB)

The NSB is a tax-free annual payment of $200 for individuals 65 or older with family net income of $12,000 or less. Qualifying families with family net income between $12,000 and $20,000 will get a partial benefit. To receive payments under the NSB, you (or your spouse) should apply for the GST/HST credit on your (or your spouse's) tax return. Benefits will be combined with the October payment of the federal GST/HST credit.

Newfoundland and Labrador Child Benefit (NLCB)

The NLCB is a tax-free monthly payment to qualifying families with children under age 18. Under the NLCB, you may be entitled to receive an annual benefit of $204 for the first child ($17 per month), $312 for the second child ($26 per month), $336 for the third child ($28 per month), and $360 ($30 per month) for each additional child.

If your family net income is more than $15,921, the benefit will be reduced based on two factors: the number of children in your family and the amount of your family net income. Benefits are fully phased out when family net income reaches $20,921.

There is no need to apply separately to receive payments under the NLCB. We will use the information from your Canada Child Tax Benefit application to determine your eligibility for the program. Benefits from this program are combined with the Canada Child Tax Benefit into a single monthly payment. For more information about your NLCB, call 1-800-387-1193.

File your tax return - You (and your spouse) should file your 2000 tax return(s) as soon as possible. We will automatically calculate the amount of any payments you are entitled to receive under all three of these programs based on the information you (and your spouse) submit on your return(s).

The NHSTC, the NSB, and the NLCB are funded entirely by the Province of Newfoundland and Labrador.

Newfoundland research and development tax credit

You may qualify for this credit if, in 2000, your business had a permanent establishment in Newfoundland, and you made eligible expenditures for scientific research and experimental development in Newfoundland.

To claim the credit, attach to your return a completed Form T1129, Newfoundland Research and Development Tax Credit (Individuals).

If you have questions…

If you have questions about Newfoundland tax and credits, contact:

Newfoundland and Labrador Tax Services Office
Canada Customs and Revenue Agency
165 Duckworth Street, P.O. Box 12075
St. John's NF A1B 4R5

Call toll free 1-800-959-8281.
To request forms call toll free 1-800-959-2221.

You will find other telephone numbers listed in the government section of your telephone book and on the Canada Customs and Revenue Agency's Web site at: www.ccra-adrc.gc.ca/tso/