Acts and Regulations

2022-69 - Tax Withholding and Deductions

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Current to 1 January 2024
NEW BRUNSWICK
REGULATION 2022-69
under the
New Brunswick Income Tax Act
(O.C. 2022-267)
Filed September 29, 2022
Under section 124 of the New Brunswick Income Tax Act, the Lieutenant-Governor in Council makes the following Regulation:
Citation
1This Regulation may be cited as the Tax Withholding and Deductions Regulation – New Brunswick Income Tax Act.
Definitions and interpretation
2(1)The following definitions apply to this Regulation and to any provision of the Income Tax Regulations under the Federal Act that applies to this Regulation.
“Act” means the New Brunswick Income Tax Act.(Loi)
“employee” means any person receiving remuneration who reports for work at an establishment of an employer in New Brunswick.(employé)
“personal credits” means, in respect of a particular taxation year, the greater of(crédits d’impôt personnels)
(a) the amount referred to in section 19 of the Act, and
(b) the aggregate of the credits that the employee would be entitled to claim for the year under sections 17, 18, 19, 20, 21, 23, 24, 27, 27.1 and 32.2 of the Act.
2(2)For the purposes of the definition “personal credits”,
(a) variable A in the formula in subsections 17(2) and 18(2), section 19, subsections 20(2) and 21(2), section 23 and subsections 24(1) and 27(1) of the Act shall be struck out and replaced by the following:
A  is 1; and
(b) section 27.1 of the Act shall be read as follows:
27.1Section 118.5 of the Federal Act applies for the purposes of this Act, with the following modifications:
(a) in subsection (1)
(i) in paragraph (a) in the portion following subparagraph (ii), the reference to “an amount equal to the product obtained when the appropriate percentage for the year is multiplied by the amount of any fees” shall be read as a reference to “the amount of any fees”,
(ii) in paragraph (b) in the portion preceding subparagraph (i), the reference to “an amount equal to the product obtained when the appropriate percentage for the year is multiplied by the amount of any fees” shall be read as a reference to “the amount of any fees”,
(iii) in paragraph (c) in the portion following subparagraph (ii), the reference to “an amount equal to the product obtained when the appropriate percentage for the year is multiplied by the amount of any fees” shall be read as a reference to “the amount of any fees”, and
(iv) in paragraph (d) in the portion preceding subparagraph (i), the reference to “an amount equal to the product obtained when the appropriate percentage for the year is multiplied by the amount of any fees” shall be read as a reference to “the amount of any fees”; and
(b) variable A in the formula in subsection (1.2) shall be struck out and replaced by the following:
A  is 1; and
2(3)Unless otherwise defined in the Act, terms and expressions that are not defined in this Regulation have the same meaning as they have in Part 1 of the Income Tax Regulations under the Federal Act.
2(4)Subsection 100(2) of the Income Tax Regulations under the Federal Act applies for the purposes of this Regulation.
2(5)Section 13 of the Act applies to this Regulation.
Amount to be deducted or withheld
3The amount to be deducted or withheld under subsection 153(1) of the Federal Act as it applies to sections 68 to 73 of the Act is determined in accordance with this Regulation.
Periodic payments
4(1)Except as otherwise provided in this Regulation, the amount to be deducted or withheld by an employer from any payment of remuneration made to an employee in the employee’s taxation year is, for each pay period, the amount determined in accordance with the following formula:
A – [B × (C + D)]
E
where
A is the amount of tax that would be payable under the Act by the employee for the taxation year if their taxable income for the taxation year were equal to their notional remuneration for the taxation year in respect of the payment and no amounts were deductible under sections 17 to 36 of the Act;
B is the appropriate percentage;
C is the amount determined in accordance with Schedule A;
D is the total of the amounts calculated in respect of the payment in accordance with clauses 102(1)(e)(iii)(A) and (iv)(A) of the Income Tax Regulations under the Federal Act; and
E is the maximum number of pay periods for the taxation year.
4(2)If an employee has elected as provided for in subsection 107(2) of the Income Tax Regulations under the Federal Act, the amount of the notional remuneration for the purposes of subsection (1) is the lesser of the following:
(a) the amount of the notional remuneration calculated in accordance with paragraph 102(1)(c) of the Income Tax Regulations under the Federal Act; and
(b) the estimated annual taxable income calculated in accordance with paragraph 102(2)(c) of the Income Tax Regulations under the Federal Act.
Non-periodic payments
5(1)Subsections 103(1) to (6) of the Income Tax Regulations under the Federal Act apply, with the following modifications:
(a) the percentage in paragraph (1)(a) shall be read as “5 %”; and
(b) in subsection (4)
(i) the percentage in subparagraph (a)(ii) shall be read as “3%”,
(ii) the percentage in subparagraph (b)(ii) shall be read as “7%”, and
(iii) the percentage in subparagraph (c)(ii) shall be read as 10%.
5(2)Section 103.1 of the Income Tax Regulations under the Federal Act applies, with the following modifications made in the description of C in subsection (2):
(a) the percentage in subparagraph (a)(ii) shall be read as “3%”;
(b) the percentage in subparagraph (b)(ii) shall be read as “7%”; and
(c) the percentage in subparagraph (c)(ii) shall be read as “10%”.
Application of the Income Tax Regulations under the Federal Act
6(1)If section 104 of the Income Tax Regulations under the Federal Act applies, no amount shall be deducted or withheld as provided for in section 4 or 5.
6(2)Subsection 102(5) and sections 106 to 109 of the Income Tax Regulations under the Federal Act apply, for the purposes of this Regulation, to an employer and an employee and to the determinations made under this Regulation.
Adjustment
7 The amounts referred to in paragraphs 1(b) and (c) of Schedule A shall be adjusted in accordance with section 16.1 of the Act for each taxation year after the 2022 taxation year.
Commencement
8This Regulation shall be deemed to have come into force on January 1, 2022.
SCHEDULE A
1For the purpose of section 4 of this Regulation, the value of variable C shall be determined as follows:
(a) if the remuneration for the year is the amount calculated in accordance with section 19 of the Act or a lesser amount, variable C is the amount calculated in accordance with section 19 of the Act;
(b) if the amount of personal credits exceeds $33,311, variable C is the actual amount of personal credits; and
(c) in any other case, variable C is the mid-point of the range of personal credits:
 $11,720.01 –
 $14,119
$14,119.01 –
 $16,518
$16,518.01 –
 $18,917
$18,917.01 –
 $21,316
$21,316.01 –
 $23,715
$23,715.01 –
 $26,114
$26,114.01 –
 $28,513
$28,513.01 –
 $30,912
$30,912.01 –
 $33,311
N.B. This Regulation is consolidated to September 29, 2022.