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Combined Federal and Provincial/Territorial Tax Rates for Income

Earned by a CCPC—2013 and 2014

Notes

(1) The federal and provincial tax rates shown in the tables apply to income earned by a

Canadian-controlled private corporation (CCPC). In general, a corporation is a CCPC if

the corporation is a private corporation and a Canadian corporation, provided it is not

controlled by one or more non-resident persons, by a public corporation, by a corporation

with a class of shares listed on a designated stock exchange, or by any combination

of these, and provided it does not have a class of shares listed on a designated stock

exchange.

For tax rates applicable to general corporations, see the tables "Federal and Provincial/

Territorial Tax Rates for Income Earned by a General Corporation Effective January 1, 2013

and 2014" and "Combined Federal and Provincial/Territorial Tax Rates for Income Earned by

a General Corporation Effective January 1, 2013 and 2014".

(2) See the table "Small Business Income Thresholds for 2013 to 2014" for changes in the

federal and provincial small business income thresholds for 2013 to 2014.

For 2010 and subsequent years, Manitoba and Nova Scotia’s provincial small business

income thresholds are the only thresholds below the federal amount. For these provinces,

a median tax rate applies to active business income between the provincial and federal

threshold. The median tax rate is based on the federal small business rate and the

applicable provincial general active business rate. For example, in 2013, Nova Scotia’s

combined rate on active business income between $400,000 and $500,000 is 27% (i.e.,

11% federally and 16% provincially).

(3) The general corporate tax rate applies to active business income earned in excess of

$500,000. See the table "Small Business Income Thresholds for 2013 to 2014" for changes

in the federal and provincial small business income thresholds for 2013 to 2014.

CCPCs that earn income from manufacturing and processing activities are subject to

the same rates as those that apply to general corporations (see the tables "Federal and

Provincial/Territorial Tax Rates for Income Earned by a General Corporation Effective

January 1, 2013 and 2014" and "Combined Federal and Provincial/Territorial Tax Rates for

Income Earned by a General Corporation Effective January 1, 2013 and 2014" ).

(4) The federal and provincial tax rates shown in the tables apply to investment income

earned by a CCPC, other than capital gains and dividends received from Canadian

corporations. The rates that apply to capital gains are one-half of the rates shown in

the tables. Dividends received from Canadian corporations are deductible in computing

regular Part I tax, but may be subject to Part IV tax, calculated at a rate of 33

(5) Corporations that are CCPCs throughout the year may claim the small business deduction

(SBD). In general, the SBD is equal to 17% of the least of three amounts — active

business income earned in Canada, taxable income and the small business income

threshold.

Current as of September 30, 2013