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Notes

(1) The small business income thresholds shown in the table apply to active business income

earned by a Canadian-controlled private corporation (CCPC) that is eligible for the small

business rate of tax (see the tables “Federal and Provincial /Territorial Tax Rates for Income

Earned by a CCPC Effective January 1, 2014 and 2015” and “Combined Federal and

Provincial/Territorial Tax Rates for Income Earned by a CCPC Effective January 1, 2014 and

2015”). All thresholds must be shared by associated corporations.

(2) The federal small business threshold is reduced on a straight-line basis when the

associated group’s taxable capital (as computed by what was previously referred to as

Large Corporations Tax) employed in Canada in the preceding year is between $10 million

and $15 million. This clawback applies to all provinces.

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

January 1, 2014.

(4) Ontario's small business deduction for CCPC's is phased out when the associated

group's taxable capital employed in Canada in the previous year is between $10 million

and $15 million. The small business deduction is fully eliminated when taxable capital

employed in Canada in the previous year is more than $15 million. This makes the Ontario

small business deduction clawback the same as the federal clawback (see note (2)

above).

(5) Quebec’s small business deduction is available to CCPCs with paid-up capital (on an

associated basis) of less than $10 million, and is phased out for CCPCs with paid-up capital

between $10 and $15 million.

(6) Nova Scotia’s small business income threshold decreased to $350,000 (from $400,000)

effective January 1, 2014.

Small Business Income Thresholds / 65

Current as of December 31, 2014