| 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 |
15.00% |
4.00% |
15.00% |
15.00% |
2.50% |
|
49.67% |
15.00% |
26.00% |
34.00% |
21.50% |
| |
|
|
|
|
|
| Income of corporation after tax |
50.33% |
85.00% |
74.00% |
66.00% |
78.50% |
| RDTOH |
25.17% |
|
|
|
|
| Dividends declared and received |
75.50% |
85.00% |
74.00% |
66.00% |
78.50% |
| Tax on dividend |
23.02% |
25.92% |
22.57% |
11.37% |
13.52% |
| Income of individual after tax |
52.47% |
59.08% |
51.43% |
54.63% |
64.98% |
| Combined tax paid at the top personal rate |
47.53% |
40.92% |
48.57% |
45.37% |
35.02% |
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 30.49%.
7) Top marginal tax rate on dividends - Non-resident owned corporations and active income over
$500,000 (eligible dividends) is 17.22%.
8) In SBCs, the provincial tax rate for M&P is: 2.5%.
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.
|
