Corporate Taxation

Income tax

Our general corporate income tax rate is lower than the comparable rate of any location in the United States, the lowest in Atlantic Canada.

According to KPMG’s Competitive Alternatives 2016 report on international business costs, Fredericton, New Brunswick, has the lowest business costs in Canada and the United States in the featured cities studied in the report.

The Large Corporation Capital Tax (LCCT) on large corporations was eliminated in January 2009.

Corporate Income Tax (April 1, 2016)

 NBFederalNLNSPEQC
General Rate14%16.5%14%16%16%11.9%
Manufacturing & processing10%16.5%5%16%16%11.9%
Small Business Rate3.5%11%4%4.5%1%8%
Small Business Threshold
(dollars in thousands)
500500500500500500

 NBONMBSKABBC
General Rate14%11.5%12%12%10%10%
Manufacturing & processing10%10%12%10%10%10%
Small Business Rate3.5%4.5%0%2%3%2.5%
Small Business Threshold
(dollars in thousands)
500500400500500500

Source: New Brunswick Department of Finance

Legend:
NB – New Brunswick
NL – Newfoundland and Labrador
NS – Nova Scotia
PE – Prince Edward Island
QC – Quebec
ON – Ontario
MB – Manitoba
SK – Saskatchewan
AB – Alberta
BC – British Columbia

Sales tax rebate

Effective July 1st, 2016, the entire 15% sales tax (or value-added tax) on business inputs and purchases is a refundable tax credit for most businesses in New Brunswick.

Source: New Brunswick Department of Finance