Lower tax rate to private Canadian Corporation with at least 50% Canadian shareholders
A private Canadian corporation that has at least 50% Canadian shareholders is entitled to a lower rate of taxation on its active income of up to $400,000. If non-residents of Canada own more than 50% of the shares the corporation loses its entitlement to this lower rate of tax.
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.
"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."