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corporatetaxrates2010 - million and $15 million have...

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Corporate Tax Rates 2010 Tax Item Active Business Income to $500,000 for CCPCs Active Business Income Above $500,000 for CCPCs or for any amount of Active Business Income for non-CCPCs Investment Income for CCPCs 1 Investment Income for non-CCPCs Federal tax rate 38.00% 38.00% 38% 38.00% Abatement for Prov. Tax 10.00% 10.00% 10% 10.00% Net Fed. tax after abatement 28% 28% 28% 28% Federal Surtax - - - - Small Business Deduction 17% Rate Reduction 10% 10% Refundable Tax 2 6.7% B.C. Provincial Tax 2.5% 10.5% 10.5% 10.5% Combined Tax Rate 13.5% 28.5% 45.2% 28.5% The small business deduction is not available for CCPCs with taxable capital employed in Canada of more than $15 million. CCPCs with taxable capital employed in Canada between $10
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Unformatted text preview: million and $15 million have reduced access to the small business deduction. The tax rate on capital gains is 38%-10%+10.5% = 38.5%. 1 This tax rate applies to investment income other than capital gains and dividends from Canadian corporations. 2 If a corporate pays investment income to shareholders as dividends then this tax is effectively not paid. Otherwise, this tax accumulates in what is called a Refundable Dividend Tax on Hand account, which is refunded to the corporation when eventually this corporation pays dividends to its shareholders....
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