MONTRALAnd the June 9, 2022 /CNW/ – The Canadian Federation of Independent Business (CFIB) welcomes the announcement made by the Finance Minister this morning, Eric Gerardregarding extending the terms of access to a tax measure called the Small Business Deduction (DPE) in the federal government’s picture in its 2022 budget. The Qubec government is also responding to another request made by the CFIB by giving all small businesses access to substantial tax credits to help them deal with a shortage employment.
More specifically, the 2022 federal budget raised the taxable capital limit from $15 million to $50 million, giving the SME the right to benefit from a lower tax rate on the first $500,000 income tranche. The Minister of Finance is adapting the same tax procedure, which will give SMEs additional leverage to continue their growth.
The government is also making amendments that will give all small businesses access to refundable tax credits for small and medium businesses that promote the retention of experienced workers and people with severe employment restrictions. The smallest companies in the service and construction sectors would not be able to reach it if they did not pay 5,000 hours (less than 3 full-time employees). These two tax credits offer payroll tax credits to help small and medium businesses, especially smaller ones, attract and retain these categories of employees. CFIB نشر Publication research note Which showed that this standard of paid hours prevented access to these tax breaks for many small businesses.
Reducing taxes and improving tax breaks are the two main demands of small and medium-sized businesses to the Quebec government to help it solve the problem of labor shortages. This is the path that Secretary Gerrard is taking today with these tax changes that will greatly help our small and medium businesses. We thank him. These actions will also contribute to our entire economy, said François Vincent, Vice President of Qubec at CFIB.
The CFIB notes that tax cuts are a win-win for all SMEs, employees and the regional economy. In fact, when asked what they would do with lowering the tax burden, SME owners would increase employee compensation (72%), acquire machinery and tools (48%) and hire new employees (47%) or invest in their training (38%).
Taxes for small and medium-sized businesses in Quebec should be on the list for the upcoming election campaign
The CFIB notes that the 5,500-hour rule preventing access to the reduced tax rate remains in place, however, for small businesses in the service and construction sectors. Qubec, like other Canadian provinces, must offer small businesses, regardless of sector of activity, a reduced tax rate. The payroll tax burden is the highest in Quebec. CFIB wants small business taxation to be an issue in the campaign.
Tax measures like the one announced today are making a difference for SMEs and are good for our economy. To help SMEs deal with labor shortages, take the turn towards automation, improving their productivity and expanding their markets, ensuring a competitive business environment is vital. Recent measures are improving the position of our SMEs. We must continue this spear, because the burden that they have to bear through payroll and income taxes is heavier than in other Canadian provinces. We hope the campaign will lead to commitments to create a more beneficial financial ecosystem without barriers for small businesses, creating wealth everywhere in Qubec,” concludes Mr. Vincent.
About CFIB
CFIB (Canadian Federation of Independent Business) is the largest federation of small and medium businesses in the country, with 95,000 members in all sectors of activity and all regions. It aims to increase the chances of success of small and medium businesses by defending their interests with governments, providing them with personal resources and offering them exclusive savings. visit CFIB.caTo find out more.
Source: Canadian Federation of Independent Business
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Press release sent on June 9, 2022 at 12:30 pm and distributed by:
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