Nov 15, 2012 – For CRA purposes in order to meet the small business deduction (SBD) and be eligible for the lower tax rate of 15.5% (combined Federal + Ontario), the business must meet the Canadian-controlled private corporation (CCPC) criteria and have active business income up to $500,000.

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.

Print. The small business deduction. Canadian-controlled private corporations (CCPCs) are entitled to claim a small business deduction on active business income (ABI) earned in Canada. Active business includes any business, as well as an adventure or concern in the nature of trade, but excludes: (i) a business that …

Jan 5, 2017 – Definition: The Business Limit relates to income tax deductions available to Canadian corporations when filing Canadian corporate tax with the Canada Revenue Agency (CRA). The Business Limit is a set dollar amount that caps the amount of Small Business Deduction (SBD) a Canadian corporation may …

Industry Canada's definition of “small business” is firms that have fewer than 100 employees. There are just over one million small businesses in Canada that have employees (excludes self-employed entrepreneurs). Ninety-eight percent of businesses in Canada have fewer than 100 employees.

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