The Minister of Finance of Prince Edward Island, Canada has delivered the Budget Address 2021. Tax-related measures of the budget include the following:
- An increase in the basic personal income tax exemption from CAD 10,500 to CAD 11,250;
- An increase in the low-income tax reduction threshold from CAD 19,000 to CAD 20,000; and
- A reduction in the small business tax rate from 2% to 1%.
Note, the small business tax rate applies on the first CAD 500,000 of active business income of qualifying …