Top Changes Small Business Should Be Aware of from the Federal Budget

What are the top changes in the 2013 Federal Budget that business owners should know about? Read this article to find out.

The three top changes that any small business owner should be aware of from the 2013 budget are as follows:

1. The tax on dividends has gone up. If you are a small business owner and you repatriate profits from your company to yourself there is going be less money in your pocket. It’s gone up by approximately 2 percent at the highest bracket for dividends.
2. The second change is actually good news. You can claim depreciation for manufacturing equipment, such that you can write-off the entire cost in two years. This is an accelerated rate of depreciation meant to help the manufacturing sector.
3. The third good change in the 2013 Federal Budget is the hiring tax credit. So, if you hire new or additional employees in 2013, or if your company’s EI premiums go up, your company can receive a tax credit of up to $1,000. That really encourages businesses to hire more people.

ABOUT THE AUTHOR

ALLAN MADAN

CPA, CA

Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.

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