Effective January 1, 2020, Toronto-Ontario has fulfilled its promise to reduce the small business Corporate Income Tax (CIT) rate by 8.7 per cent by cutting the rate to 3.2 per cent. To attract investment and enable entrepreneurs to grow their start up and business and create the high paying, good quality jobs, government planned to supporting small businesses.
Rod Phillips, Minister of Finance said; “Ontario has tremendous opportunity and potential, and we are working to create the conditions for job creators to grow and succeed. An important part of our plan is to reduce the tax rate for small businesses, as they play a vital role in the economy,”
This reduction in tax will deliver up to $1,500 in annual savings to more than 275,000 businesses – from family-owned shops to innovative start-ups. Overall, Ontario’s small businesses are saving $2.3 billion in 2020 via government action which provides Ontario income tax relief and other measures.
“The move will help make doing business in Ontario more affordable, providing extra money for job creators to use where it’s most needed. A lower small business tax rate is a welcome way to kick off the new decade,” said Julie Kwiecinski, Director of Provincial Affairs for Ontario at the Canadian Federation of Independent Business.
Following these steps the government welcomes Small Business Success Strategy.
On the other hand, Ontario is looking to double the number of new immigrants, it can nominate for Canadian permanent residence through Canada’s Provincial Nominee Program. The province is planning to increase its allocation under PNP from 6,650 in 2019 to 13,300 in 2022. The Provincial Nominee Program’s admissions target for 2019 was 61,000 new permanent residents, which was an increase of 6,000 over the 2018 target of 55,000. The immigration target for the PNP in 2020 is 67,800. Recent years have seen Ontario’s component of the PNP, the Ontario Immigrant Nominee Program (OINP), receive the largest allocation among participating provinces and territories.