Canada

Canada: Prince Edward Island PST increase

On April 19th 2016, the finance minister for the Canadian province of Prince Edward Island, announced the fiscal 2016-17 budget. Whilst it contained no new taxes or further increases to income tax, it did contain an increase to the Provincial tax part of the Harmonised Sales Tax (HST), taking this from 14% to 15%. This is made up of 10% PST and 5% GST and will be effective as of the 1st of October 2016.

This is the third province this year to announce a rise in PST, see links below to earlier announcements.

New Brunswick increase HST (published April 2016).
New Foundland and Labrador to raise HST rate (published August 2015).

Canada – New Brunswick increase HST

The Canadian province of New Brunswick has announced plans to increase its Harmonized Sales Tax (HST) rate from 13% to 15% as of 1st of July 2016 in a hope to bring in about $300 million in revenue for the cash-strapped provincial government. They are also increasing Corporate Tax from 12% to 14% in order to draw in more revenue to cover their large budget deficit.

HST is a combination of Canadian Federal Goods and Services Tax, currently 5%, plus the local provincial tax, this is the part that New Brunswick are increasing from 8% to 10%. See the governments recently released transitional rules for the HST increase for further information on the subject.

 

Newfoundland – Canada to raise its HST rate in 2016

Canada’s rising Harmonised Sales Tax

The Canadian province of Newfoundland and Labrador is planning to raise its Harmonised Sales Tax (HST) rate from 13% to 15% on the 1st of January 2016. HST is a combined tax made up of federal Goods & Services Tax (GST) and local Provincial Sales Tax (PST), the GST rate will remain at 5% but the PST will increase from 8% to 10%.

The recoverable amount will also be changing in 2016 and 2017; Municipalities and local service districts will receive a partial rebate on the provincial portion of the HST of:

• 25% effective January 1, 2016
• 57.14% effective January 1, 2017

So this will only be effective on the 10% PST.

Canadian Tax Facts guide

From KPMG:
KPMG in Canada presents an annual guide containing quick answers to many practical questions that arise during the tax and financial planning process.
Regularly updated online as tax changes occur, this report features a variety of hard-to-find facts and figures, all in tabular format.Read Tax Facts 2014-2015
List of Exempt Supplies
List of Zero Rated Canadian Supplies