Page 66

58 /

Combined Federal and Provincial/Territorial Tax Rates for Income

Earned by a CCPC—2014 and 2015

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 2014

and 2015" and "Combined Federal and Provincial/Territorial Tax Rates for Income Earned by

a General Corporation Effective January 1, 2014 and 2015".

(2) See the table "Small Business Income Thresholds for 2014 and 2015" for the federal and

provincial small business income thresholds.

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 2014, Nova Scotia’s combined rate on active business

income between $350,000 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 2014 and 2015" for the

federal and provincial small business income thresholds.

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, 2014 and 2015" and "Combined Federal and Provincial/Territorial Tax Rates for

Income Earned by a General Corporation Effective January 1, 2014 and 2015" ).

(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 December 31, 2014