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  • The Board of Directors for the Yellowknife Chamber of Commerce requested that the NWT small business tax rate be reduced to 2% and that the larger business tax rate be reduced to 10.5%.

    Download our June 15, 2016 letter requesting a reduction in the Corporate Tax Rates here.

    Advocacy Updates:

    October 13, 2016 - Northwest Territories Hansard (starting on page 984):

    • "For NWT tax purposes, a small business is usually defined as a company owned by Canadians with capital investment of less than $10 million and with shares of the company not traded on a stock exchange. A small business receives preferential tax treatment in that its business profit (taxable income) up to $500,000 is subjected to a lower corporate tax rate of 4% instead of the general corporate income tax rate of 11.5%."
       
    • "Using the 2009 to 2013 average, the NWT has 1,853 small businesses including those operating as not for profit organizations. About 1,009, or 54%, of these businesses do not pay NWT corporate income tax."
       
    • "There are no policies, legislation or regulations that permit small businesses to not pay taxes when they are profitable...If a small business is not paying taxes it is because it is not generating taxable income"

    Reducing the small business tax rate from 4% to 3% would generate a potential average annual GNWT revenue loss of $700,000.

    Reducing the small business tax rate from 4% to 2% would generate a potential average annual GNWT revenue loss of $1.4 million.

    Reducing the general corporate income tax rate from 11.5% to 10.5% would generate a potential average annual GNWT revenue loss of $5.3 million based on a ten-year average, however, corporate income can fluctuate significantly and the potential losses over the ten year period (2005 to 2014)... would have ranged from $3 million to $9 million".

    Download a section of the Northwest Territories Hansard, where the above information is presented, by clicking here.