|Download the budget highlights as a PDF file.|
On Thursday, June 27, 2013, British Columbia’s Minister of Finance, the Honourable Michael de Jong, introduced the province’s post-election budget.
The June 27, 2013 budget reintroduces all the tax measures proposed in the province’s February 19, 2013 budget. For details, see our Tax memo ‘2013 British Columbia budget: Tax highlights’ at www.pwc.com/ca/budget.
As a result of BC’s June 27 budget and the March 21, 2013 federal budget, top combined federal/BC rates will increase as shown in the table.
|Ordinary income & interest||43.70%||45.80%|
|Canadian dividends - eligible||25.78%||28.68%|
|Canadian dividends - non-eligible||33.71%||37.99%1|
1The 2013 federal budget increases the rate on non-eligible dividends starting 2014. See our Tax memo ‘2013 Federal budget: Staying the course’ at www.pwc.com/ca/budget.
The June 27 budget also proposes that:
The increase in BC’s general corporate income tax rate (which also applies to manufacturing and processing income) from 10% to 11% on April 1, 2013, is implemented by Bill 2, Budget Measures Implementation Act, 2013, which received first reading on June 27, 2013.
Therefore this rate change is considered substantively enacted for Canadian GAAP as of June 27, 2013, but it is not yet enacted for US GAAP.