Jump to Other corporate tax ratesFor other corporations, income that is not subject to the small business deduction is subject to a federal corporate income tax rate of 15%. 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 Small Business Deduction is one of the most beneficial of all income tax deductions available to Canadian corporations because it reduces the amount of Part 1 tax that a corporation would have to pay otherwise. For instance, according to the tax rates in effect as of January 1st, a corporation that qualified for the Small …

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%.

Feb 7, 2017 – 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%.