🏠 | Newfoundland and Labrador | Small Business Tax Rate

Small Business Tax Rate

Amount:

no fixed amount

Type:

Newfoundland and Labrador

Description:

The Small Business Tax Rate provides small business owners in Newfoundland and Labrador a reduced rate of 3% to determine the corporate income tax payable.

Comments on Funding:

The support is a reduced rate of 3% to determine the applicant’s corporate income tax payable instead of the general corporate income tax rate of 15%.
The reduced rate of 3% applies to the first $500,000 of active business income earned in the province and that qualifies for the federal small business deduction.

Deadline:

Rolling deadline

Eligibility:

The applicant must:
1. be a small business,
2. be a Canadian controlled private corporation (CCPC),
3. maintain a permanent establishment in Newfoundland and Labrador,
4. carry on an active business in the province.

Application Steps:

The applicant:
1. can use Schedule 307, Newfoundland and Labrador Corporation Tax Calculation, to help the applicant calculate the Newfoundland and Labrador tax before the credits are applied.
2. must enter the amount of tax calculated on line 200 and/or 205 of Schedule 5, Tax Calculation Supplementary – Corporations.

Documentation Needed:

No specific documentation has been identified.

Other Things to Note:

The Federal Government administers the Small Business Tax Rate on behalf of the Province.

Maurice

About the author

Maurice

Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Atlantic Canada to identify and maximize government grants to grow their business. Click here to learn more about Moe’s background and how he can help your business.