Small businesses in Nova Scotia will ring in the new year with a reduced tax rate.
The province's corporate income tax rate for small business will drop to 3.5 per cent, effective Jan. 1. This was announced in the 2012-13 budget.
"From one end of the province to the other, small businesses are the heart of our communities and our economy," said Finance Minister Maureen MacDonald. "We have cut the small business tax rate three years in a row because we know it's important to help these businesses be competitive, continue to grow and create good jobs."
Over the last three years, the province's small business tax rate has been lowered from 5 per cent to 3.5 per cent. The impact of these three rate decreases will mean a total savings of $30 million for Nova Scotia small business by 2013-14, up to $6,000 per eligible corporation per year.
Nova Scotia's small business corporate income tax rate applies to taxable income earned by eligible corporations, up to $400,000. Over 13,000 incorporated businesses are eligible for the small business tax rate.