Prince Edward Island, Canada enacted the Budget 2021 measures on 17 November 2021. Tax-related measures of the budget apply from 1 January 2022 and include the following:
- An increase in the basic personal income tax exemption from CAD 10,500 to CAD 11,250;
- An increase in the low-income tax reduction threshold from CAD 19,000 to CAD 20,000; and
- A reduction in the small business tax rate from 2% to 1%.
Note, the small business tax rate applies on the first CAD 500,000 of active business inco…