Do you need to upgrade your computer systems or hardware?
Now may be the time. Canada’s Economic Action Plan includes a temporary 100% capital cost allowance (CCA) rate for all new computer hardware and systems software for all Canadian businesses.
Normally the CCA is 55%, which means that you can only deduct 55% in the first year. The temporary 100% CCA means that you can claim the full amount of your computer hardware/software purchase in the first year.
The government is hoping to accelerate the investment in technology and computers which will increase productivity. This initiative was implemented on January 27, 2009 and is available to all Canadian businesses until February 1, 2011.
The estimated cost of this initiative is $340 million in 2009/2010 and $355 million in 1010/2011.
For more information please consult your tax advisor or visit Canada’s Economic Action Plan – Budget 2009.
www.budget.gc.ca/2009/pamphlet-depliant/pamphlet-depliant2-eng.asp
Some other initiatives for Canadian businesses:
Reduction of taxes for small businesses – 11% on the first $400,00 of qualifying income.
Canada’s Manufacturing and Processing Sector – 50% straight line accelerated capital cost allowance (CCA) rate to investment in manufacturing or processing machinery and equipment.
Mineral Exploration – temporary 15% mineral exploration tax credit
