Shares of a qualified small business corporation (QSBC) continue to qualify for the capital gains deduction. To qualify as a QSBC, a company must be a Canadian– controlled private corporation and at least 90% of its assets must be used in an active business in Canada.

Canadian-controlled private corporations (CCPCs) are entitled to claim a small business deduction on active business income (ABI) earned in Canada. Active business … Also, such corporations do not qualify for the general corporate rate reduction, as such they are taxed at the highest federal rate of 28%. (2) When …

Jan 8, 2018 – A share of a corporation will be considered to be a qualified small business corporation share if all the following conditions are met: at the time of sale, … gains deduction. If you have a capital gain when you sell qualified small business corporation shares, you may be eligible for the capital gains deduction.

Jan 5, 2017 – The reduced business limit in the explanation from the T2 Corporation Income Tax Guide above refers to the fact that since large Canadian-controlled Private Corporations (CCPCs) that have taxable capital employed in Canada of $15 million or more do not qualify for the Small Business Deduction, the business limit is …

And any CCPC that is a member of an associated group that has in total more than $10 million of taxable capital employed in Canada faces a reduced business limit as well. Qualifying as a Canadian-controlled private corporation is the best possible income tax scenario for a Canadian corporation.