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Tax Rate Reductions for Small Corporations

Tax Planning for Lower tax rate for CCPC

A private Canadian corporation that has at least 50% Canadian shareholder, called a Canadian Controlled Private Corporation or CCPC, is entitled to a lower rate of taxation on its active income of up to $500,000. If non-residents of Canada or public corporations own more than 50% of the shares the corporation loses its CCPC status and its entitlement to this lower rate of tax. Tax planning should be carried out by one of our Calgary tax lawyers to ensure profits do not exceed the $500,000 threshold.

Canadian income tax reduction is available to Canadian corporations that carry out manufacturing and processing

A Canadian income tax reduction is available to Canadian corporations that carry out manufacturing and processing provided that they meet certain criteria. However determining what is manufactured and what isn’t is not always clear.

Disclaimer:

"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."

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