For complete budget details see the NL Budget
2009 website. For details of tax changes see their news release
about the New
Tax Measures.
Personal tax changes
Low-Income Tax Reduction
Changes are effective for 2009
Income thresholds to be increased
from $13,511 to $15,911 for individuals
from $21,825 to $26,625 for families
An individual with an income of $16,000 will save
$544 annually
A family with income of $26,000 will save almost
$800 annually
Dividend Tax Credit (DTC)
Effective for the 2009 tax year, the dividend tax
credit rate on dividends eligible for the enhanced
dividend
tax credit will be increased from 6.65% of grossed-up dividends
to 9.75%. This works out to an increase from 9.6425% of actual dividends
to 14.1375%. This changes in 2010, because the NL Income Tax Act
actually specifies the dividend tax credit as 31.42% of the Federal
gross-up amount. See the NL dividend
tax credit page for details of future rates.
Labour-Sponsored Venture Capital Tax Credit (LSVCC)
Effective April 1, 1009
provincial tax credit rate increased from 15% to
20%
maximum annual contribution increased from $5,000
to $10,000
Corporate Income Tax
Effective January 1, 2009 the corporate income tax
small business threshold will increase from $400,000 to $500,000.
The information on this site is not intended to be a
substitute for professional advice. Each person's situation differs, and
a professional advisor can assist you in using the information on this web
site to your best advantage.
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