Corporate Taxation and U.S. Federal Tax Rates
Business Income Eligible for SBD¹ – 2018
|Prince Edward Island||4.003||14.00|
|without MPP / with MPP||7.246 / 4.007||17.24 / 14.00|
|Newfoundland and Labrador||3.00||13.00|
|without MPP / with MPP||2.00 / 1.50||12.00 / 11.50|
1 $500,000 eligible for the SBD for federal purposes and all provinces and territories except Manitoba ($450,000; $500,000 as of January 1, 2019) and in Saskatchewan ($600,000 since January 1, 2018). In all jurisdictions, the SBD is progressively reduced when paid-up/taxable capital of all associated corporations is greater than $10M and is eliminated when it is $15M. For taxation years beginning after 2018, the SBD will also be reduced when adjusted aggregate investment income of all associated corporations will be greater than $50,000 and will be nil when it will reach $150,000. 2 Since January 1, 2018 (10.5% before that date). Rate reduced to 9% as of January 1, 2019. 3 Rate reduced to 2.5% since April 1, 2018 (3.0% before that date). Average rate of 2.63% for 2018). 4 Since January 1, 2018 (4.5% before that date). 5 Since January 1, 2018 (4.5% before that date). 6 Rate reduced to 7% since March 28, 2018 (8% before that date). Average rate of 7.24% for 2018. Rate reduced thereafter by 1% per year to reach 4% in 2021. 7 Rate reduced up to 4% for SMEs in primary and manufacturing sectors, based on their proportion of activities in these sectors. 8 Combined rate of 12% on the first $500,000 of income that qualifies for the SBD and rate of 17% on the next $100,000 of qualifying income, because of the gap between the federal-provincial ceiling.
This document is up to date as of August 31, 2018 and reflects the status of legislation, including proposed amendments at this date.