Corporate
Income Tax Redesign?!
CORPORATE TAX
2000 Federal Corporate Rates
Active Business Income
Not Eligible for the Small Business Deduction (SBD) 29.12%
Not Eligible for SBD, Eligible for Manufacturing and Processing (M & P)
Deduction 22.12%
Eligible for the SBD 13.12%
Other Income
Canadian Controlled Private Corporations (CCPC) 35.79%
Other Corporations 29.12%
Refundable Portion of Federal Tax
Part I Tax and 6 2/3% Tax 26.67%
Part IV Tax 33.33%
Refund Rate on taxable dividends paid 1:3
2000 Ontario Corporate Rates
Basic Rate 15.5% (reduced to 14.5% effective May 2,
2000)
Small Business 8.0% (reduced to 7% effective May 2, 2000)
M&P 13.5% (reduced to 12.5% effective May 2, 2000)
Investment Income 15.5% (reduced to 14.5%
effective May 2, 2000)
Surtax is equal to the lesser of 4.67% of taxable income in excess of $200,000 and the
amount of the small business deduction claimed.
Family farm corporations will now be exempt from capital tax.
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