No Fixed Amount
Type of Program:
Corporations that were Canadian-controlled private corporations (CCPCs) throughout the tax year may be able to claim the small business deduction (SBD). The SBD reduces Part I tax that the corporation would otherwise have to pay.
Comments on Funding:
The SBD is 19% of whichever of the following amounts is less:
The basic rate of Part I tax being 38% of your taxable income, 28% after the federal tax abatement, the SBD rate results in a 9% tax rate.
When It Ends:
The applicant must be:
Applicants must calculate the SBD and enter it on Line 430 – Small business deduction of the T2 Corporation Income Tax Return form.
Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Ontario to identify and maximize government grants to grow their business.
Click here to learn more about Moe’s background and how he can help your business.