(6) 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 the taxable income 
of a corporation earned from a “personal services business”. 

(7) The refundable tax of 6

2

/

3

% of a CCPC’s investment income and capital gains, as well as 

20% of such income that is subject to regular Part I tax, is included in the corporation’s 

Refundable Dividend Tax on Hand (RDTOH) account. When taxable dividends (eligible and 

non-eligible) are paid out to shareholders, a dividend refund equal to the lesser of 33

1

/

3

% 

of the dividends paid or the balance in the RDTOH account is refunded to the corporation.

(8) Saskatchewan provides a tax rebate that generally reduces the general corporate income 

tax rate on income earned from the rental of newly constructed qualifying multi-unit 
residential projects by 10%. The rebate is generally available for a period of 10 consecutive 
years for rental housing that is registered under a building permit dated on or after March 
21, 2012 and before January 1, 2014, and available for rent before the end of 2016.

(9) Manitoba's small business income threshold increased to $425,000 (from $400,000) on 

January 1, 2014.

(10) New Brunswick's small business income tax rate decreased to 4.0% (from 4.5%) 

effective January 1, 2015. 

(11) Nova Scotia’s small business rate decreased to 3.0% (from 3.5%) effective January 1, 

2014. Nova Scotia's small business income threshold also decreased to $350,000 (from 
$400,000) effective January 1, 2014.

(12) Newfoundland and Labrador's small business tax rate decreased to 3.0% (from 4.0%) 

effective July 1, 2014.

(13) The Yukon Territory's small business tax rate decreased to 3.0% (from 4.0%) effective  

July 1, 2014.

Combined Federal and Provincial/Territorial Tax Rates for Income Earned by a CCPC

 

/  59

Current as of December 31, 2014

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