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CD 2010-009: Information Notice to Employees

Tax Changes -- Effective July 1, 2010

The purpose of this information notice to employees is to provide you with information relative to the tax legislation changes that are effective July 1, 2010.

The following provincial budgets contained changes to the respective tax legislation which will be effective July 1, 2010.

Newfoundland and Labrador

Newfoundland and Labrador has reduced the second and third personal income tax brackets from 12.8% to 12.5% and 15.5% to 13.3% respectively.

The following table provides the changes to the Newfoundland and Labrador tax rates effective July 1, 2010.

Newfoundland and Labrador Tax Brackets and Rates
Tax brackets and rates effective January1,2010 Tax brackets and rates effectiveJuly 1, 2010
Tax brackets Tax rates Tax brackets Tax rates
More than - Not more than More than - Not more than
$0 to $31,278 7.70% $0 to $31,278 7.70%
$31,278 to $62,556 12.80% $31,278 to $62,556 12.50%
Over $62,556 15.50% Over $62,556 13.30%

Personal Tax Credits

Newfoundland and Labrador is increasing the provincial Age amount tax credit to $5,000. The following table provides the changes to the Newfoundland and Labrador tax credit amounts effective July 1, 2010.

Provincial Personal Tax Credit Amounts
  Amount effective January1,2010 Amount effectiveJuly 1, 2010
Age amount maximum of $3,681 maximum of $5,000

The "2010 Newfoundland and Labrador Personal Tax Credits Return" (TD1NL) form has been revised to include these changes.

Nova Scotia

The government of Nova Scotia has announced that the province will add a fifth tax bracket for personal taxable income in excess of $150,000.

The following table provides the changes to the Nova Scotia tax brackets and rates effective July 1, 2010.

Nova Scotia Tax Brackets and Rates
Tax brackets and rates effective January1,2010 Tax brackets and rates effectiveJuly 1, 2010
Tax brackets Tax rates Tax brackets Tax rates
More than - Not more than More than - Not more than
$0 to $29,590 8.79% $0 to $29,590 8.79%
$29,590 to $59,180 14.95% $29,590 to $59,180 14.95%
$59,180 to $93,000 16.67% $59,180 to $93,000 16.67%
Over $93,000 17.50% $93,000 to $150,000 17.50%
    Over $150,000 24.50%

The current provincial surtax equal to 10% of individual provincial tax payable in excess of $10,000 will be suspended effective July 1, 2010.

Multiple Tax Adjustment Factors

The Canada Revenue Agency (CRA) has provided new rates for the Multiple Tax Adjustment Factors applicable to the province of Nova Scotia, effective July 1, 2010. The Multiple Tax Adjustment Factors effective July 1, 2010 will be as follows:

Federal Tax Brackets
Tax brackets and rates effective July 1, 2010
Tax brackets Tax rates Nova Scotia New Brunswick Ontario
More than - Not more than    
$0 to $40,970 15.00% 90% 94.00% 61%
$40,970 to $81,941 22.00% 103% 93.00% 73%
$81,941 to $127,021 26.00% 103% 89.00% 86%
Over $127,021 29.00% 103% 88.00% 89%

All pay systems will be programmed to automatically reflect the new provincial tax rates for payments dated on or after July 1, 2010.

Effective July1,2010, employees who wish to obtain the additional credit for the Newfoundland and Labrador Age amount personal tax credit must file a revised "2010 Newfoundland and Labrador Personal Tax Credits Return" (TD1NL) form. This form is available at District Taxation Office (DTO) or on the Internet at the following address: Canada Revenue Agency - Forms listed by form number

Any inquiries on the information contained in this document should be addressed to your compensation advisor.