Corporate Tax Rates and Legislation: Q1 2024 Accounting status

April 02, 2024

Issue 1 – Q1 2024 Accounting status

Legislative changes—January 1 to March 31, 2024
Accounting updates—January 1 to March 31, 2024
Federal and provincial/territorial bills—tabled or received royal assent in 2024
Corporate income tax rates—accounting status (January 1, 2021 to March 31, 2024)

Legislative changes — January 1 to March 31, 2024

Legislative developments from January 1 to March 31, 2024, that affect income taxes, are outlined below.

Federal Bill C-59 (2023 federal budget and other measures)

Federal Bill C-59, An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023 and certain provisions of the budget tabled in Parliament on March 28, 2023, received second reading on March 18, 2024. For more information on key tax measures in Bill C-59, see our Q4 2023 Accounting status update at www.pwc.com/ca/tmas.

Status: As at March 31, 2024, Bill C-59 is not considered substantively enacted for Canadian GAAP or enacted for US GAAP. See Table 1 below for Bill C-59’s status.

Federal and provincial/territorial budgets

The federal budget will be presented on April 16, 2024. Explore www.pwc.com/ca/budget and sign up at www.pwc.com/ca/stayintouch to receive our in‑depth federal budget analysis as soon as it is published.

The following provinces and territories introduced budgets from January 1 to March 31, 2024. None of these budgets announced changes to general and M&P corporate income tax rates. Visit www.pwc.com/ca/budget for key changes respecting:

Alberta – See our Tax Insights “2024 Alberta budget: Tax highlights”
British Columbia – See our Tax Insights “2024 British Columbia budget: Tax highlights”
New Brunswick, Newfoundland and Labrador, Nova Scotia and Nunavut – No key changes
Ontario – See our Tax Insights “2024 Ontario budget: Tax highlights”
Prince Edward Island – No key changes
Quebec – See our Tax Insights “2024-2025 Québec budget: Tax highlights”
Saskatchewan – See our Tax Insights “2024 Saskatchewan budget: Tax highlights”
Yukon – No key changes

Status: As at March 31, 2024, some of the provinces and territories (e.g. Alberta, British Columbia, Nova Scotia and Ontario – see Table 1 below) have tabled legislation to implement their budget measures, but none of the measures relate to general corporate income tax changes.

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Accounting updates — January 1 to March 31, 2024

There were no significant updates relating to the accounting for income tax.

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Federal and provincial/territorial bills

Table 1 lists key bills that include corporate income tax rate changes or other income tax changes (e.g. for research and development) that were:

tabled or received royal assent during 2024, or
tabled before 2024, but did not receive royal assent before 2024

Table 1: Federal and provincial/territorial bills
Bolded rows indicate a change in status from January 1 to March 31, 2024.

	Legislation		Recognized for accounting purposes
	Bill #	Bill name	Canada	US GAAP
Federal	C-59	An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023 and certain provisions of the budget tabled in Parliament on March 28, 2023	Not as at March 31/24¹
Alberta	10	*Financial Statutes Amendment Act, 2024*	March 12/24	Not as at March 31/24
British Columbia	3	*Budget Measures Implementation Act, 2024*	February 22/24	Not as at March 31/24
Nova Scotia	419	*Financial Measures (2024) Act*	March 5/24	Not as at March 31/24
Ontario	180	An Act to implement Budget measures and to enact and amend various statutes	March 26/24	Not as at March 31/24
Québec	49	An Act to give effect to fiscal measures announced in the Budget Speech delivered on 21 March 2023 and to certain other measures	February 8/24	Not as at March 31/24
Saskatchewan	158	The Saskatchewan Commercial Innovation Incentive (Patent Box) Amendment Act, 2024	March 27/24	Not as at March 31/24
Because Canada has a minority government, a federal bill is only considered substantively enacted for Canadian GAAP once it passes third reading in the House of Commons.

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Corporate income tax rates—accounting status (January 1, 2021 to March 31, 2024)

The following information excludes Canadian-controlled private corporation small business rates and thresholds.

Table 2: Corporate income tax rates—accounting status
There were no changes in status from January 1 to March 31, 2024.

		Effective date	Rate	Recognized for accounting purposes		Bill #
				Canada	US GAAP
Federal	General and manufacturing and processing (M&P)	Before January 1/21	15%¹	Before January 1/21		N/A
	Provincial SIFT tax factor/rate²	Before January 1/21	Varies²	Before January 1/21		N/A
	Additional tax on banks and life insurers	For taxation years ending after April 7, 2022³	1.5%	December 8/22⁴	December 15/22	C-32
Alberta	General and M&P	Before January 1/21	8%	Before January 1/21		N/A
British Columbia	General and M&P	Before January 1/21	12%	Before January 1/21		N/A
Manitoba	General and M&P	Before January 1/21	12%	Before January 1/21		N/A
New Brunswick	General and M&P	Before January 1/21	14%	Before January 1/21		N/A
Newfoundland and Labrador	General and M&P	Before January 1/21	15%	Before January 1/21		N/A
Northwest Territories	General and M&P	Before January 1/21	11.5%	Before January 1/21		N/A
Nova Scotia	General and M&P	Before January 1/21	14%	Before January 1/21		N/A
Nunavut	General and M&P	Before January 1/21	12%	Before January 1/21		N/A
Ontario	General	Before January 1/21	11.5%	Before January 1/21		N/A
	M&P		10%
	Corporate Minimum Tax (CMT)		2.7%
Prince Edward Island	General and M&P	Before January 1/21	16%	Before January 1/21		N/A
Québec	General and M&P	Before January 1/21	11.5%	Before January 1/21		N/A
Québec	SIFT Distribution Tax	Before January 1/21	Varies⁵	Before January 1/21		N/A
Saskatchewan	General	Before January 1/21	12%	Before January 1/21		N/A
Saskatchewan	M&P	Before January 1/21	10%	Before January 1/21		N/A
Yukon	General	Before January 1/21	12%	Before January 1/21		N/A
Yukon	M&P	Before January 1/21	2.5%	Before January 1/21		N/A
Starting taxation years beginning after 2021, federal Bill C-19 (royal assent: June 23, 2022) temporarily reduces corporate income tax rates for qualified zero‑emission technology manufacturing income by 50% until 2028, with the rate reduction gradually phased out until it is eliminated for taxation years beginning after 2031; these rate reductions are substantively enacted for Canadian GAAP and enacted for US GAAP as at June 23, 2022. Federal Bill C-59 (see Table 1 above): (i) extends the availability of these reduced rates by three years, to 2031, with the rate reduction gradually phased out until it is eliminated for taxation years beginning after 2034; and (ii) expands these reduced rates to income from certain nuclear manufacturing and processing activities, for taxation years beginning after 2023; these proposed measures are not considered substantively enacted for Canadian GAAP or enacted for US GAAP as at March 31, 2024. Except for Québec, the “provincial Specified Investment Flow-Through (SIFT) tax rate” is: ● based on the general provincial corporate income tax rate for each province in which the SIFT has a permanent establishment ● 10% for SIFTs that do not have a permanent establishment in a province The additional tax on banks and life insurers applies on taxable income over $100 million; the exemption is shared by related corporations. For a taxation year that includes April 7, 2022, the additional tax is prorated based on the number of days in the taxation year after April 7, 2022. Because Canada has a minority government, a federal bill is only considered substantively enacted for Canadian GAAP once it passes third reading in the House of Commons. Québec’s SIFT Distribution Tax equals the Québec corporate income tax rate that would apply if the SIFT were a corporation.