RSM424H1 Chapter Notes - Chapter 11: Small Business, Dividend Tax
22 Feb 2017
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Additional tax on personal services business income less. Federal tax part i of the ita (a) federal tax: (b) provincial tax: (c) combined federal and provincial taxes (a+b) Specific provincial tax credits x x x x x (x) xx (x) x x x xx x xx x xx. ** the refundable tax on investment income and the small business deduction do no apply to public corporations. General tax reduction: a general tax reduction applies to particular types of income earned by corporations: Pu(cid:271)li(cid:272) (cid:272)orporatio(cid:374)s: federal ta(cid:454) is redu(cid:272)ed (cid:271)(cid:455) 13% of the (cid:272)orporatio(cid:374)"s taxable income other than its income from manufacturing and processing activities (m&p), which has a separate reduction described below. After the general rate reduction, the net federal tax rate is 15% Ccpcs: federal tax is reduced by 13% on active business income (other than income qualifying for the m&p reduction described below) that is above the annual limit to which the small business deduction applies (see below).
