| Description |
Investment
CCPC |
Upto $400,000
Active Income
CCPC (SBC) |
$400,000 to
$500,000
Active Income
CCPC |
Other Income |
Above
$500,000
Manufacturing
Income |
| Federal |
38.00% |
38.00% |
38.00% |
38.00% |
38.00% |
| Surtax |
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% |
| |
|
|
|
|
|
| Federal Abatement ITA 124(1) |
-10.00% |
-10.00% |
-10.00% |
-10.00% |
-10.00% |
| General Reduction ITA 123.4(2) |
|
|
|
-9.00% |
|
| Manufacturing reduction ITA 125.1(1) |
|
|
|
|
-9.00% |
| Small Business Deduction ITA 125(1) & (2) |
|
-17.00% |
-17.00% |
|
|
|
-10.00% |
-27.00% |
-27.00% |
-19.00% |
-19.00% |
| |
|
|
|
|
|
| Federal Tax |
34.67% |
11.00% |
11.00% |
19.00% |
19.00% |
| Provincial Tax |
11.90% |
8.00% |
11.90% |
11.90% |
11.90% |
|
46.57% |
19.00% |
22.90% |
30.90% |
30.90% |
| |
|
|
|
|
|
| Income of corporation after tax |
53.43% |
81.00% |
77.10% |
69.10% |
69.10% |
| RDTOH |
26.67% |
|
|
|
|
| Dividends declared and received |
80.10% |
81.00% |
77.10% |
69.10% |
69.10% |
| Tax on dividend |
31.71% |
32.07% |
30.52% |
22.17% |
22.17% |
| Income of individual after tax |
48.39% |
48.93% |
46.58% |
46.93% |
46.93% |
| Combined tax paid at the top personal rate |
51.61% |
51.07% |
53.42% |
53.07% |
53.07% |
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 39.59%.
7) Top marginal tax rate on dividends - Non-resident owned corporations and active income over
$500,000 (eligible dividends) is 32.09%.
8) Tax holidays are available to certain corporations.
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.
|
