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%.

Nov 1, 2017 – Eligibility for the small business deduction also depends on the amount of the corporation's taxable capital employed in Canada. For more information see the information on the small business deduction in the Canada Revenue Agency T2 Corporation Income Tax Guide (link below). See also: – Corporate …

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 …

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 … CCPCs that have taxable capital of between $10 million and $15 million in the previous tax year are eligible for the Small Business Deduction but their …

Dec 22, 2016 – Eligible businesses can claim the 17.5% small business deduction on their first $500,000 of income, with some limitations. You can use the resulting tax savings to help your business grow. It is important to make sure you are eligible before you claim the small business deduction.