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Statutes of Newfoundland and Labrador 2019


CHAPTER 26

AN ACT TO AMEND THE INCOME TAX ACT, 2000

(Assented to December 6, 2019)

Analysis


        1.   S.9 Amdt.
Personal credits

        2.   Ss. 17.2 to 17.4 R&S

              17.2 Child care tax credit

              17.3 Volunteer
firefighters' tax credit

              17.4 Search and rescue volunteer tax credit

        3.   S.44 Amdt.

              Foreign tax credits

        4.   Commencement


Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:

SNL2000 cI-1.1
as amended

        1. (1) Subsection 9(2) of the Income Tax Act, 2000 is repealed and the following substituted:

             (2)  For the purpose of computing the tax payable under this Part for the 2020 and subsequent taxation years by an individual who, before the end of the year, has attained the age of 65 years, there may be deducted the amount determined by the formula

A x ($6,063 - B)

where

                       A  is the appropriate percentage for the year; and

                       B  is 15% of the amount, if any, by which the individual's income for the year would exceed $33,226 if, in computing that income, no amount were included in respect of a gain from a disposition of property to which section 79 of the federal Act applies and no amount were deductible under paragraph 20(1)(ww) of the federal Act.

             (2)  Subsection 9(3) of the Act is repealed and the following substituted:

             (3)  For the purpose of computing the tax payable under this Part for a taxation year by an individual who was resident in the province on the last day of the taxation year, there may be deducted an amount determined by the formula

A x B

where

                       A  is the appropriate percentage for the year; and

                       B  is the lesser of

             (a)  $1,000; and

             (b)  the amount determined under paragraph (b) of the description of B in subsection 118(3) of the federal Act and used in computing the individual's deduction under that section for the taxation year.                     

 

        2. Sections 17.2, 17.3 and 17.4 of the Income Tax Act, 2000 are repealed and the following substituted:

Child care tax credit

   17.2 For the purpose of computing the tax payable under this Part for a taxation year by an individual who was resident in the province on the last day of the taxation year, there may be deducted an amount determined by the formula:

A x B

where

               A  is the appropriate percentage for the year; and

               B  is an amount that is deducted in computing the taxpayer's income for the year under section 63 of the federal Act.

Volunteer
firefighters' tax credit

   17.3 For the purpose of computing the tax payable under this Part for a taxation year by an individual who was resident in the province on the last day of the taxation year and who performs eligible volunteer firefighting services in the year, there may be deducted the amount determined by multiplying $3,000 by the appropriate percentage for the year if the individual

             (a)  performs in the year not less than 200 hours of services each of which is an hour of

                      (i)  eligible volunteer firefighting services for a fire department, or

                     (ii)  eligible search and rescue volunteer services for an eligible search and rescue organization;

             (b)  provides the certificates referred to in subsections 118.06(3) and 118.07(3) of the federal Act when requested by the Minister of National Revenue; and

             (c)  has not deducted an amount under section 17.4 for the year.

Search and rescue volunteer tax credit

   17.4 For the purpose of computing the tax payable under this Part for a taxation year by an individual who was resident in the province on the last day of the taxation year and who performs eligible search and rescue volunteer services in the year, there may be deducted the amount determined by multiplying $3,000 by the appropriate percentage for the year if the individual

             (a)  performs in the year not less than 200 hours of services each of which is an hour of

                      (i)  eligible search and rescue volunteer services for an eligible search and rescue organization, or

                     (ii)  eligible volunteer firefighting services for a fire department;

             (b)  provides the certificates referred to in subsections 118.07(3) and 118.06(3) of the federal Act when requested by the Minister of National Revenue; and

             (c)  has not deducted an amount under section 17.3 for the year.

 

        3. Paragraph 44(1)(a) of the Act is repealed and the following substituted:

             (a)  the product of

                      (i)  the corporation tax rate in section 40,

                     (ii)  the foreign investment income of the corporation for the year from sources in the country, and

                    (iii)  that proportion that the corporation's taxable income earned in the year in the province is of the corporation's taxable income earned in the year; or         

Commencement

        4. (1) Subsection 1(2) is considered to have come into force on January 1, 2015.

             (2)  Subsection 1(1) and section 2 come into force on January 1, 2020.

             (3)  Section 3 is considered to have come into force on January 1, 2016.