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Who is subject to CMT?

1

Corporations with annual gross revenues in excess of 

$100 million and assets in excess of $50 million (on an 

associated group basis) are subject to CMT

What is the base for CMT?

2

Corporation’s CMT adjusted net income, which is 

book income before taxes calculated in accordance 

with Accounting Standards for Private Enterprises 

(ASPE) or the International Financial Reporting 

Standards (IFRS) adjusted for specific items that 

would otherwise double-count intercorporate profits

CMT adjustments to financial  

statement income include:

3

• The reversal of equity or consolidation methods of

accounting

• The deduction of dividends included in financial

statement income to the extent they are deducted 

for regular tax purposes

• The inclusion of the corporation’s share of

partnership income, calculated in accordance with 

ASPE or IFRS

• Unrealized gains and losses included in accounting

income and accounting gains arising from 

corporate reorganizations or the replacement of 

assets are exempt from CMT

CMT rate

4

2.7% of CMT adjusted net income, less any CMT 

eligible losses, multiplied by the Ontario allocation 

factor

CMT payable

CMT in excess of the corporation's regular Ontario 

income tax liability

CMT eligible losses

5

Carry forward period
Carry back period

20 years
None

CMT paid in year

6

Carry forward period
Carry back period

20 years
None

Ontario Corporate Minimum Tax (CMT)—At a Glance

Current as of September 30, 2013

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