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Statutes of Newfoundland and Labrador 2014


CHAPTER 12

AN ACT TO AMEND THE INCOME TAX ACT, 2000

(Assented to June 5, 2014)

Analysis


        1.   S.20 R&S
Dividend tax credit

        2.   S.21.1 Amdt.
Low income reduction

        3.   S.40 Amdt.
Corporation tax

        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. Section 20 of the Income Tax Act, 2000 is repealed and the following substituted:

Dividend tax credit

      20. (1) 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 equal to the total of

             (a)  4.1% of the total of the amount required under paragraph 82(1)(a) and subparagraph 82(1)(b)(i) of the federal Act to be included in computing the individual’s income for the year; and

             (b)  5.4% of the total of the amount required under paragraph 82(1)(a.1) and subparagraph 82(1)(b)(ii) of the federal Act to be included in computing the individual’s income for the year.

             (2)  Subsection (1) shall only apply to a dividend received on or after the coming into force of this section.

 

        2. Paragraphs 21.1(2)(b) and (c) of the Act are repealed and the following substituted:

             (b)  $18,547; or

             (c)  where the eligible individual has a qualified relation for the year or claims an amount under paragraph 9(1)(b) for the year, $31,362,

 

        3. Paragraph 40(3)(a) of the Act is repealed and the following substituted:

             (a)  3% of an amount calculated by allocating to the province, on the same basis as set out in the regulations made for the purpose of the definition "taxable income earned in the year in a province" in subsection 124(4) of the federal Act, a portion of the amount that is the least of the amounts calculated under paragraphs 125(1)(a), (b) and (c) of the federal Act and allowed for the purpose of subsection 125(1) of the federal Act in respect of the corporation for the year; and

Commencement

        4. (1) Sections 1 and 3 of this Act come into force on July 1, 2014.

             (2)  Section 2 of this Act is considered to have come into force on January 1, 2014.