Once passive income exceeds $150,000, the corporation will no longer be able to access the small business tax rate.A second measure proposes to generally limit the accessibility to a corporation refundable taxes to the extent non eligible dividends are paid, with certain exceptions for dividends arising from portfolio dividends.Federal budget simpler plan to tax passive income likely to calm small business outcryFederal budget fine print: A look at some details that might have slipped under the radarIn short, there were no major changes for small businesses on the tax front. Instead, the government focused on women entrepreneurship, new plans to simplify how governments work with growing businesses and encourage entrepreneurship.Women entrepreneurs: By far, the largest net new impact on Canada entrepreneurial class is the $1.65 billion in new financing being made available to women business owners, to be delivered over three years through the Business Development Bank of Canada and Export Development Canada.The government is also making $105 million available over five years to reduce barriers that have traditionally made it harder for women to launch their own business. Those who do business with the federal government will also notice changes.
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