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Canadian Controlled Private Corporation (CCPC)

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Glossary  -> Canadian Controlled Private Corporation (CCPC)

Canadian Controlled Private Corporation (CCPC)

Income Tax Act s. 125, s. 110.6(2.1), s. 121, s. 82(1)(b)(ii)

A CCPC is a private corporation which is controlled by Canadian residents. A corporation will not qualify as a CCPC if it is controlled directly or indirectly by a public corporation or non-residents, or a combination of the two.

A CCPC is eligible for the small business deduction, which provides a reduction in corporate income tax on active business income.

Dividends received from a CCPC are eligible for the small business dividend tax credit.

When the shares of a qualifying CCPC are sold,  the shareholder(s) may avoid capital gains tax by utilizing all or part of the $800,000+ lifetime capital gains exemption (LCGE).

Revised: January 22, 2017

 

 

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