Small Business Deduction for Corporations
The small business deduction is a reduction in corporate taxes for Canadian controlled private corporations, or CCPCs. The reduced rate of tax is available on active business income up to the corporation's business limit for the year. The federal business limit is $500,000 for 2009 and later years. The deduction is shared between related corporations, and subject to reductions based on taxable capital over $10 million and aggregate investment income over $50,000.
Corporate Tax Information
Keeping Books and Records - How long should I keep my Documents?
In a May 11, 2015 Technical Interpretation, CRA was asked about the required period for records retention. CRA noted the following:
1. A corporation’s permanent records (including Minutes of Directors’ and Shareholders’ Meetings, share registers, the general ledger, and any contracts or agreements necessary to understand the
general ledger entries) must be retained until two years after the corporation is dissolved.
2. In the absence of an exception, a corporation’s non permanent records must be retained for a period of six years after the end of the last taxation year to which they relate. For example, invoices for the purchases of capital assets must generally be kept for 6 years after they are disposed, not just 6 years after purchase. All non-permanent corporate records on hand at the date of dissolution must be retained for two years after the date of dissolution. Records related to late filed return must be kept for 6 years from the date of filing.
3. Permanent records of an unincorporated business must be retained for six years after the end of the taxation year in which the business ceased, while other records must be retained for six years after the end of the last taxation year to which they relate.
Government Programs - Employer Support
Employer Support Programs - Matrix 2016
Wage Subsidies and Other Assistance Programs - Federal
Hiring and Training Incentives for Employers - Ontario
Windsor Essex Development Office
Scientific Research & Experimental Development (SR&ED) Investment Tax Credit
Apprenticeship Training Tax Credit
Effective for expenditures incurred after March 31, 2014, the following information technology contact centre trades no longer qualify for the apprenticeship training tax credit: technical support agent, inside sales agent, and customer care agent. A transitional support program will be created for apprentices into these affected trades.
CCA Classification of Assets
Current Changes to CCA rates and classes
Class 53 (50%) - manufacturing or processing equipment acquired after 2015 and before 2026
Class 54 (30%) and Class 55 (40%) for zero-emission vehicles acquired after Mar 18, 2019. Special accelerated rules apply for these two classes.
Class 56 (30%) - zero emission non-motor vehicles acquired after Mar 1, 2020. Special accelerated rules apply.
Accelerated Investments Incentive
Provides an enhanced first year allowance of up to three times the normal CCA rate for property acquired after Nov 20, 2018
Provides Full expensing of additions to class 53 acquired after Nov 20, 2018
Provides full expensing of clean energy investments in class 43.1 and 43.2 acquired after Nov 20, 2018
International Electronic Fund Transfers
Beginning in 2015, all banks, credit unions, caisses populaires, trust and loan companies, money service businesses, and casinos must report all international electronic funds transfers of at least $10,000 to the CRA within five working days of the transfer. The information reported includes amount transferred, transferor, transferee, facility acting as intermediary, and transaction details.
