2023 Newfoundland and Labrador budget tax highlights

On March 23, the Newfoundland and Labrador government released its 2023 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 2023 are outlined below:

Physical activity tax credit

This refundable tax credit will be doubled, providing a maximum credit up to $338 for families who access recreational and sporting activities.

Corporate tax measures

No corporate income tax rate changes were announced in this year’s budget. The current corporate income tax rates for 2023 are outlined below:

Green Technology Tax Credit & Manufacturing and Processing Investment Tax Credit

These credits were previously announced on April 7, 2022 and included in Bill 54, which received Royal Assent on June 1, 2022.

The Green Technology Tax Credit is a 20 per cent tax credit on certain capital costs for eligible Canadian‑controlled private corporations (CCPCs), up to a maximum of $1 million shared annually within an associated group. See the Newfoundland and Labrador government’s website for further details.

The Manufacturing and Processing Investment Tax Credit is a 10 per cent tax credit on certain capital property investments. The credit applies to eligible capital costs for buildings, machinery and equipment within the manufacturing, fishery, farming and forestry sectors in certain circumstances. See the Newfoundland and Labrador government’s website for further details.

All‑Spend Film and Video Production Tax Credit

This tax credit is being increased to 40 per cent and will apply to total qualified production costs with a maximum credit of $10 million annually per project.

Next steps

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