Ontario Apprenticeship Tax Credit
The Apprenticeship Tax Credit is meant to lower the cost of training new skilled workers in certain industries. It is available for apprentices registered in the program after April 23, 2015. The operation of the credit results in:
- The general tax credit rate being reduced from 35% to 25%; and
- A rate reduction for small businesses with salaries and wages under $400,000 from 45% to 30%.
Additionally, the annual maximum per apprentice will be reduced from $10,000 to $5,000, and the eligibility period will be reduced from 48 to 36 months.
Disclaimer: Articles are for general information only and do not constitute tax advice. They cannot be relied upon.
Sam Faris is a Toronto-based Chartered Professional Accountant who practices as an independent consultant on high-level Canadian tax matters and handling disputes with CRA.He also published an article recently in the business magazine: HERE.