New Small Business Tax Deduction - Atlantic Canada Business Grants

Amount:

No Fixed Amount

Type of Program:

Tax Deduction

Description:

Nova Scotia corporate tax reduction for new small businesses is a tax reduction that applies to the first three tax years of an eligible corporation.

Comments on Funding:

New small businesses have their first three years income tax reduced. The tax reduction is based on the portion of an eligible corporation's taxable income earned in the year in Nova Scotia.

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

Applicants must:

be a Canadian-controlled private corporation incorporated in Nova Scotia, or be a corporation incorporated outside the province, but inside of Canada, that:

pays at least 25% of its wages to employees who are resident in the province,
has its head office in the province,

be eligible for the federal small business deduction for the tax year,
have at least two employees, one of whom must be full-time and unrelated to any shareholder, for the specified taxation year,
not be associated with another corporation(s),
not be in a partnership or a joint venture with an ineligible corporation(s),
not be a beneficiary of a trust where any beneficiary is ineligible,
not be a previous active business with essentially the same owner(s) or related owner(s),
not be a professional practice of an accountant, dentist, lawyer, medical doctor, veterinarian or chiropractor,
not be a business carrying on the same, or substantially the same, business activity as was carried on as a sole proprietorship, partnership or corporation. However, if the sole proprietorship or partnership carried on the same or substantially the same business for 90 days or less before incorporation, the corporation can apply to the Minister for a certificate of eligibility.

Application Steps:

Applicants must:

Applicants must apply annually to the Nova Scotia Minister of Finance and Treasury Board for a certificate of eligibility and must do so within three years of the tax year-end for which they are claiming the reduction.

Documentation Needed:

The applicant must:

enter the taxable income from line 360 of the T2 return, if the corporation has a permanent establishment only in Nova Scotia or in the offshore area of Nova Scotia,
Otherwise, enter the total of the taxable incomes allocated to both jurisdictions in Nova Scotia (the province itself and the offshore area) from column F in Part 1 of Schedule 5.

Program Contact:

New Small Business Tax Deduction (Corporate Tax Holiday)

Nova Scotia corporate tax reduction for new small businesses

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