(3) The federal and provincial rates shown in the tables apply to investment income earned 

by general corporations 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

%.

(4) 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.

(5) 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. General corporations that earn 

income from M&P activities are subject to the same rates as those that apply to CCPCs.

(6) British Columbia’s general corporate tax rate increased to 11% (from 10%) effective  

April 1, 2013.

(7) New Brunswick's general corporate tax rate increased to 12% (from 10%) effective  

July 1, 2013.

Current as of September 30, 2013

Substantively Enacted Income Tax Rates for Income Earned by a General Corporation  /  71

© 2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms

affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.