As we begin a new year, it’s wise to stay informed about the latest tax rates as it is a critical component to your company’s bottom line. Here are the latest combined 2020 corporate tax rates by provinces and territories:
|
Small Business Income up to $500,000 |
Active Business Income |
Investment Income |
|
| British Columbia |
11.0% |
27.0% |
50.7% |
| Alberta |
11.0% |
25.0% |
48.7% |
| Saskatchewan | 11.0% | 27.0% | 50.7% |
| Manitoba | 9.0% | 27.0% | 50.7% |
| Ontario | 12.5% | 26.5% | 50.2% |
| Quebec | 14.0% | 26.5% | 50.2% |
| New Brunswick | 11.5% | 29.0% | 52.7% |
| Nova Scotia | 12.0% | 31.0% | 54.7% |
| Prince Edward Island | 12.0% | 31.0% | 54.7% |
| Newfoundland and Labrador | 12.0% | 30.0% | 53.7% |
| Yukon | 11.0% | 27.0% | 50.7% |
| Northwest Territories | 13.0% | 26.5% | 50.2% |
| Nunavut | 12.0% | 27.0% | 50.7% |
The tax rates for “Small Business Income up to $500,000” applies to active business income up to $500,000 earned by a Canadian-controlled private corporation (CCPC).
The tax rates for “Active Business Income” applies to active business income in excess of $500,000 earned by a Canadian-controlled private corporation (CCPC) and non-CCPC.
The tax rates for “Investment Income” applies to investment income earned by a CCPC, other than capital gains and dividends received from Canadian corporations.
In general, a corporation is a CCPC if the corporation is a private corporation that is operating in Canada, provided it is not controlled by one or more non-resident persons.