Corporate Taxation and U.S. Federal Tax Rates

Investment Income¹ – 2020

This document is up to date as of September 3, 2020 and reflects the status of legislation, including proposed amendments at this date.

2020 % %
combined
%
RDTOH2
Federal 38.673
Provincial
Alberta 9.004 47.67 30.67
British Columbia 12.00 50.67 30.67
Prince Edward Island 16.00 54.67 30.67
Manitoba 12.00 50.67 30.67
New Brunswick 14.00 52.67 30.67
Nova Scotia 14.505 53.17 30.67
Nunavut 12.00 50.67 30.67
Ontario 11.50 50.17 30.67
Quebec 11.506 50.17 30.67
Saskatchewan 12.00 50.67 30.67
Newfoundland and Labrador 15.00 53.67 30.67
Northwest Territories 11.50 50.17 30.67
Yukon 12.00 50.67 30.67

1 Investment income includes interest, taxable capital gains and other property income, but not deductible dividends.
2 Investment income of CCPCs gives rise to refundable dividend tax on hand (RDTOH) of 30.67%. This income tax is refundable at the rate of 38.33% when taxable dividends are paid. For taxation years started after 2018, the RDTOH is allocated between two separate accounts (eligible and non-eligible) refundable based on the nature of the dividend paid by the corporation.
3 15% rate for non-CCPCs.
4 Rate reduced to 8% since July 1, 2020 (10% before that date; average rate of 9% in 2020).
5 Rate reduced to 14% since April 1, 2020 (16% before that date; average rate of 14.50% in 2020).
6 Since January 1, 2020 (11.6% before that date).

 

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