2022 Newfoundland and Labrador provincial budget tax highlights

On April 7, the Newfoundland and Labrador government released their 2022 budget. The following are highlights of the key tax measures.

Personal tax measures

No personal income tax rate changes were announced in this year’s budget. The current personal combined income tax rates for 2022 are outlined below:

Corporate tax measures

No corporate income tax rate changes were announced in this year’s budget. The current corporate income tax rates for 2022 are outlined below:

Other tax measures

Green technology tax credit

The budget introduced a new 20 per cent green technology tax credit for companies which invest in equipment for energy conservation and clean energy generation, use fuels from waste or make efficient use of fossil fuels. The maximum credit is $1 million annually, of which 40 per cent is refundable.

Manufacturing and processing investment tax credit

The budget introduced a new 10 per cent manufacturing and processing investment tax credit to support the manufacturing, fishery, farming and forestry sectors to invest in capital equipment.

All Spend Film and Video Production Tax Credit

The budget introduced a new 30 per cent All Spend Film and Video Production Tax Credit that will apply to total qualified production costs with a maximum credit of $10 million annually per project.

Provincial sales tax measures

Home insurance

Effective April 7, 2022, the 15 per cent retail sales tax on home insurance will be eliminated for one year.

Next steps

Contact your Baker Tilly advisor to learn more about how we can help you navigate the complexities of the Canadian tax system.