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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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