(3) The general corporate tax rate applies to active business income earned in excess of the
small business income threshold.
(4) Nova Scotia’s small business rate decreased from 4% to 3.5% effective January 1, 2013
and will decrease to 3% effective January 1, 2014. The small business income threshold
will also decrease to $350,000 (from $400,000) effective January 1, 2014.
(5) Prince Edward Island's small business rate increased to 4.5% (from 1%) effective
April 1, 2013.
(6) The federal and provincial tax rates shown in this table 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 table. 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
1
/
3
%.
(7) A general tax rate reduction is available on qualifying income. Income that is eligible for
other reductions or credits, such as small business income, M&P income and investment
income subject to the refundable provisions, is not eligible for this rate reduction. The
general rate reduction does not apply to the portion of taxable income of a corporation
earned from a “personal services business” for taxation years that begin after
October 31, 2011.
(8) Corporations that derive at least 10% of their gross revenue for the year from
manufacturing or processing goods in Canada for sale or lease can claim the manufacturing
and processing (M&P) deduction against their M&P income. The M&P calculation is
based on income that is not eligible for the small business deduction. CCPCs that earn
income from M&P activities are subject to the same rates as those that apply to general
corporations.
(9) British Columbia’s general corporate tax rate increased to 11% (from 10%) effective
April 1, 2013.
(10) New Brunswick's general corporate tax rate increased to 12% (from 10%) effective
July 1, 2013.
Substantively Enacted Income Tax Rates for Income Earned by a CCPC
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Current as of September 30, 2013
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