p44 s1 bill 12 b012 e 0.pdf

Ontario — Bills

1ST SESSION, 44TH LEGISLATURE, ONTARIO CHARLES III, 2025 Bill

An Act to amend the Taxation Act, 2007 to increase Ontario small business deductions Ms S. Bowman Private Member’s Bill 1st Reading May 6, 2025 2nd Reading 3rd Reading Royal Assent Bill

An Act to amend the Taxation Act, 2007 to increase Ontario small business deductions His Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows: 1 (1) Subsection 31 (4) of the Taxation Act, 2007 is amended by striking out “and” at the end of clause (

d) and by repealing clause (

e) and substituting the following: (e) 8.3 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2019 and before January 1, 2026 to the total number of days in the taxation year; and (f) 9.9 per cent multiplied by the ratio of the number of days in the taxation year that are after December 31, 2025 to the total number of days in the taxation year. (2) Subsection 31 (5) of the Act is amended by striking out “$500,000” and substituting “$600,000”. (3) Clause 31 (5.1) (

a) of the Act is amended by striking out “$500,000” and substituting “$600,000”. 2 The formula in clause 32 (1) (

b) of the Act is amended by striking out “$500,000” wherever it appears and substituting in each case “$600,000”. Commencement This Act comes into force on January 1, 2026 or, if this Act receives Royal Assent after that day, this Act is deemed to have come into force on that day.

Short title The

short title of this Act is the Cutting Taxes on Small Businesses Act, 2025. ______________ EXPLANATORY NOTE The Bill amends the Taxation Act, 2007.

Section is amended to increase the Ontario small business deduction rate from 8.3 per cent to 9.9 per cent. The business limit for a taxation year for the purposes of the small business deduction is increased from $500,000 to $600,000. The formula in clause 32 (1) (

b) for calculating the surtax to be added by an Ontario small business is also amended to reflect the increase of $500,000 to $600,000. The amendments are to come into force on January 1, 2026.

Document details

Collection	Ontario — Bills
Citation	p44 s1 bill 12 b012 e 0.pdf
Type	bill
Volume / chapter	p44 s1 bill 12 b012 e 0.pdf
Language	en
Format	json
Source	PROVINCIAL
Identifier	78a100b9272853fde4956388b10bcf681aedd9d8

Source file is stored in the law ingest library (json).