No Fixed Amount
Type of Program:
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.
When It Ends:
The applicant must:
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.
must enter the amount of tax calculated on line 200 and/or 205 of Schedule 5, Tax Calculation Supplementary – Corporations.
Other Things to Note:
The Federal Government administers the Small Business Tax Rate on behalf of the Province.