12%20%e2%80%93%20Manufacturing%20and%20Processing%20Deduction%20ONLY

12%20%e2%80%93%20Manufacturing%20and%20Processing%20Deduction%20ONLY

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 12 Manufacturing and Processing Deduction ONLY
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Manufacturing and Processing Profits Deduction A further incentive for manufacturers to pay lower taxes Is less important than it used to be, since we now have the 10% General Rate Reduction, which is available to all companies. At a very basic level is equal to 10% of manufacturing and processing profits. Some provinces, of which Ontario is one, still provide special treatment for manufacturing and processing profits that qualify for the federal M&P deduction
Background image of page 2
Eligibility: Any corporation that derives 10% or more of its
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: M&P involves creating something, but does not include logging, farming, fishing, construction, producing industrial minerals and processing of mineral resources. M&P Deduction Equal to 10% of the least of: M&P profits (you will not have to calculate this number), less amounts eligible for the M&P deduction Taxable income less the sum of: Amount eligible for the M&P deduction 3 x the foreign business tax credit, calculated without consideration of the general rate reduction Aggregate Investment Income (Chapter 13) if the company is a CCPC. Complete Exercise 12-9 on page 582....
View Full Document

Page1 / 4

12%20%e2%80%93%20Manufacturing%20and%20Processing%20Deduction%20ONLY

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online