Americas

Home page

Americas

Canadian government highlights tax relief for 2011

31 December 2010 02:44 (UTC +04:00)

Baku-APA. Canadian government highlighted on Thursday a series of tax reliefs, which will take effect in 2011, APA reports quoting Xinhua News Agency.

The Finance Ministry announced in a news release that the federal general corporate income tax rate will be reduced from 18 percent to 16.5 percent to encourage new business investment, which is an important driver of Canadians’ prosperity.

The ministry counts on the investment increase will boost productivity, resulting in higher wages, more jobs and improved living standards.

The deductible portion of meal expenses for long-haul truck drivers for expenses incurred after 2010 will be increased from 75 percent to 80 percent.

An improvement will also be introduced in the allocation of child benefits between parents who live separately and who share custody of a child. Specifically, these parents will be able to separately receive their related Canada Child Tax Benefit, Universal Child Care Benefit, and child component of the Goods and Services Tax/Harmonized Sales Tax Credit amounts in a particular month or quarter. This measure will apply to benefits payable commencing July 2011.

Moreover, the ministry will implement the tax-free rollover of a deceased individual’s Registered Retirement Savings Plan or Registered Retirement Income Fund proceeds to the Registered Disability Savings Plan (RDSP) of a financially dependent infirm child or grandchild.

This will give parents and grandparents more flexibility in providing for the long-term financial security of a child with a disability. RDSP contributions under this measure in respect of deaths after 2007 will be permitted after June 2011.

In addition to these changes, starting January 1, 2011, Canadians can contribute an additional 5,000 Canadian dollars ( about 5,000 US dollars) to their Tax-Free Savings Account.