Business and commercial: Province offers small business tax cuts

The Ontario government is trying to pave the way to increased success for small business owners. It is not always easy for those invested in business and commercial endeavours in Ontario to make a go of it. The province has plans to decrease the small business tax rate to 3.2% by the beginning of next year. It's also expected that the dividend tax credit will also be lowered, allowing shareholders to earn back some of their expenses. 

The provincial small business tax now sits at 3.5% and the drop is expected to save more than 275,000 Ontario small business owners about $1,500 annually in taxes. Small business shareholders who earn dividends will see a cut from 3.3% to 3%; however, those who receive non-eligible dividends are poised to get less of a credit meaning the province would save $125 million over three years. The tax drop is in the hopes of keeping small businesses competitive in a tough economy.

The province is consulting with owners and stakeholders of larger businesses before it makes a decision on tax cuts in that realm. There is an advisory council in place to get feedback from business leaders and workers in hopes of providing feedback. The provincial Ministry of Finance figures the provincial gross domestic product to grow by 1.4% this year and by 1.5% next year and into 2021. 

Making a go of it in the business and commercial sectors is often difficult and any incentives might be welcome. An Ontario lawyer may be able to help an entrepreneurial client in various areas including taxation, startups, growing a business and negotiations. Having a lawyer to offer legal advice may make decision-making regarding business ventures much less taxing.

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