| Description |
Investment
CCPC |
Upto $500,000
Active Income
CCPC (SBC) |
$500,000 to
$1,500,000
Active Income
CCPC |
Other Income |
Upto $500,000
Manufacturing Income |
$500,000 to
$1,500,000
Manufacturing Income |
| Federal |
38.00% |
38.00% |
38.00% |
38.00% |
38.00% |
38.00% |
| Surtax |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
| Refundable tax on investment income |
6.67% |
|
|
|
|
|
|
44.67% |
38.00% |
38.00% |
38.00% |
38.00% |
38.00% |
| |
|
|
|
|
|
|
| Federal Abatement ITA 124(1) |
-10.00% |
-10.00% |
-10.00% |
-10.00% |
-10.00% |
-10.00% |
| General Reduction ITA 123.4(2) |
|
|
-9.00% |
-9.00% |
|
|
| Manufacturing reduction ITA 125.1(1) |
|
|
|
|
-9.00% |
-9.00% |
| Small Business Deduction ITA 125(1) & (2) |
|
-17.00% |
|
|
|
|
|
-10.00% |
-27.00% |
-19.00% |
-19.00% |
-19.00% |
-19.00% |
| |
|
|
|
|
|
|
| Federal Tax |
34.67% |
11.00% |
19.00% |
19.00% |
19.00% |
19.00% |
| Provincial Tax |
14.00% |
5.50% |
14.00% |
14.00% |
12.00% |
12.00% |
| Surtax |
|
|
4.25% |
|
|
3.25% |
|
48.67% |
16.50% |
37.25% |
33.00% |
31.00% |
34.25% |
| |
|
|
|
|
|
|
| Income of corporation after tax |
51.33% |
83.50% |
62.75% |
67.00% |
69.00% |
65.75% |
| RDTOH |
25.67% |
|
|
|
|
|
| Dividends declared and received |
77.00% |
83.50% |
62.75% |
67.00% |
69.00% |
65.75% |
| Tax on dividend |
24.13% |
26.17% |
14.46% |
15.44% |
15.90% |
15.15% |
| Income of individual after tax |
52.86% |
57.33% |
48.29% |
51.56% |
53.10% |
50.60% |
| Combined tax paid at the top personal rate |
47.14% |
42.67% |
51.71% |
48.44% |
46.90% |
49.40% |
NOTE:
1) Tax rates are effective January 1, 2009.
2) CCPC: Canadian Controlled Private Corporation
3) Investment income excludes dividends from Canadian corporations.
4) Active income threshold is calculated on an associated basis.
5) Non-resident shareholders are subject to withholding tax of 25% or less on dividends depending on tax treaty with Canada.
6) Top marginal tax rate on dividends - Investments & active income below $500,000
(non-eligible dividends) is 31.35%.
7) Top marginal tax rate on dividends - Non-resident owned corporations and active income over
$500,000 (eligible dividends) is 23.05%.
8) Ontario Corporations on an associated basis, have either gross revenues over $10 million or total assets over $5 million are subject to corporate minimum tax based on adjusted net income. The minimum tax is payable in a year only to the extend that if it exceeds the regular Ontario income tax.
9) Surtax applies on taxable income of associated companies.
NOTICE TO READER:
In preparing the above tables great care has been taken to ensure accuracy,
However, readers are strongly advised to consult a professional before relying
on the contents of the above table.
|
