The Quebec, Canada tax authority issued a release on 4 May 2026, announcing an increase in the small business deduction rate along with a reduction in the small business tax rate for taxation years beginning after 29 April 2026.
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Increase in the Small Business Deduction Rate
Under certain conditions, a Canadian-controlled private corporation (CCPC) can benefit from a reduction in the 11.5% general income tax rate. The reduction, known as the small business deduction (SBD), applies to …