Example: A CCPC earns income from an active business carried on in Canada and has taxable income of $650,000 for its fiscal period ended December 31, 2016. The income eligible for the small business deduction ($500,000) will be taxed at the lowest federal tax rate of 10.5%.

Feb 7, 2017 Federal rates. The basic rate of Part I tax is 38% of your taxable income, 28% after federal tax abatement. After the general tax reduction, the net tax rate is 15%. For Canadian-controlled private corporations claiming the small business deduction, the net tax rate is 10.5%.

Jan 5, 2017 To receive the Small Business Deduction, a business has to be a Canadian-controlled Private Corporation (CCPC). For such corporations, the Small Business Deduction rate for 2017 is 17.5%, giving a small business tax rate of 10.5%.

In Canada, the small business tax rate is the tax rate paid by a small business. As
of 2016, the small business tax rate is 10.5%. Definitions[edit]. A small business
in Canada is defined as a Canadian-based corporation with less than 100
employees and under $500,000 in annual income. The general corporate tax
rate is …

2012 – 2015. 2016 – 2017. General and manufacturing. & processing (M&P)
income. Basic rate. 38. Less: provincial abatement. 10. General federal rate (
before … 13. General federal and M&P rate. 16.5. 15. Canadian– controlled
private corporations. (CCPCs). Threshold. Small business deduction threshold2.
$500,000.