Corporate Tax Rate Reduced

As of January 1, 2011, the federal general corporate income tax rate is 16.5%, down from 18%. The rate will be further reduced to 15% on January 1, 2012.

The rate for qualifying small business income remains at 11% (since 2008) and the limit remains at $500,000 (since 2006 when it increased from $300,000 to $400,000).

The government is hopeful that these changes will stimulate jobs and economic growth in Canada.