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Table 6 Combined Federal and Provincial/Territorial Corporate Income Tax Rates and Thresholds

for CCPCs1 (based on a December31yearend) 2010 (%)

2011 (%)

Active Business Investment Active Business

Income

Income3

Income

Investment Income3

Threshold for 2010 and 2011 year ends

to $400,0002

$400,000 to $500,0002

to $400,0002

$400,000 to $500,0002

Amount Effective

Federal

11.00

34.67

11.00

34.67

$500,000

Any time

Alberta

14.00

British Columbia

13.50

Manitoba New Brunswick

11.92

16.00

Newfoundland and Labrador

16.00

Northwest Territories

15.00

23.00

44.67

14.00

45.17

13.50

46.16

16.00

48.67

15.00

46.17

15.00

46.67

11.00

23.00

$460,000

April 1, 2008

$500,000

April 1, 2009

$400,000

January 1, 2005

$500,000

January 1, 2010

$400,000

Any time

44.67

Same as federal (see above)

46.17

44.67

46.67 45.16

48.67

Nunavut

15.00

46.67

15.00

Ontario

16.001

47.66

15.50

Prince Edward Island

12.27

50.67

12.00

Quebec

19.00

46.57

19.00

Saskatchewan

15.50

46.67

15.50

Nova Scotia

16.00

27.00

50.67

15.50

27.00

15.00 13.50

Yukon

49.67 n/a

Non-M&P M&P

15.00

26.00

13.50

$400,000

Any time

Same as federal

(see above)

50.67

46.67

Lower: $500,000 Upper: $1,500,0001

January 1, 2007

$500,000 Same as federal

July 1, 2010 (see above)

46.57

$400,000

January 1, 2006

$500,000

March 20, 2009

46.41

50.67

49.67

$400,000

January 1, 2007

n/a

$500,000

January 1, 2011

Any time

46.67

$500,000

1. See Table 4 for rates that apply on active business income of a CCPC above $500,000 (above $1,500,000 in Ontario before July 1, 2010). Before July 1, 2010, Ontario clawed back the benefit of its small business deduction when taxable income fell between $500,000 and $1,500,000. Rates that applied after taking the clawback into account are shown in the table below.

Ontario

Non-M&P M&P

2010 $500,000 to $1,500,000

    • 33.10

      %

    • 30.60

      %

  • 2.

    If taxable capital employed in Canada in the preceding year of associated CCPCs exceeds $10 million, the federal small business rate will be higher and all provincial and territorial rates will be higher, except Ontario’s, which had a clawback that increases its small business rate, as described in footnote 1. Ontario’s clawback was eliminated on July 1, 2010.

  • 3.

    Rates on investment income are 16.67% (18.17% in 2011) higher than the general rates in Table 4 because:

    • CCPC investment income does not benefit from the 10.0% (11.5% in 2011) federal general rate reduction; and

    • the rates on investment income include a 6-2/3% tax that is refundable when the CCPC pays taxable dividends. Generally, 26-2/3% of a CCPC’s aggregate investment income is added to its refundable dividend tax on hand (RDTOH). This amount is refundable at a rate of $1 for every $3 of taxable dividends paid by the CCPC.

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