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2008 Corporate Tax Rates

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Business  ->  Corporate income tax rates -> 2008 Corporate income tax rates

2008 Corporate Income Tax Rates

The following table shows the general and small business corporate income tax rates federally and for each province and territory for 2008.  The small business rates are the applicable rates after deducting the small business deduction, which is available to Canadian-controlled private corporations (CCPCs).  The small business rate is available on active business income up to the amount of the Business Limit.

2008 Corporate Income Tax Rates

 

General

Small Business

Business Limit

Federal (1) 19.5% 11% $400,000 (11)
Alberta (3) 10% 3% $430,000 / $460,000
BC (4) 12% / 11% 4.5% / 3.5% / 2.5% $400,000
Manitoba (5) 14% / 13% 2% $400,000
New Brunswick 13% 5% $400,000
Newfoundland & Labrador 14% 5% $400,000 (2)
Nova Scotia (6) 16% 5% $400,000
Northwest Territories 11.5% 4% $400,000 (2)
Nunavut 12% 4% $400,000 (2)
Ontario (7) 14% 5.5% $500,000
Prince Edward Island (8) 16% 4.3% / 3.2% $400,000 (2)
Quebec (9) 11.4% 8% $400,000
Saskatchewan (10) 13% / 12% 4.5% $450,000 / $500,000
Yukon 15% 4% $400,000
  1. Federal general rates, after federal tax abatement and general rate reduction:
    1. 21% before January 1, 2008

    2. 19.5% effective January 1, 2008

    3. 19% effective January 1, 2009

    4. 18% effective January 1, 2010

    5. 16.5% effective January 1, 2011

    6. 15% effective January 1, 2012

  2. NL, NT, NU and PE use the federal small business limit.

  3. Alberta's business limit is increased effective April 1, 2008, and increasing to $500,000 on April 1, 2009.

  4. BC's 11% rate was effective July 1, 2008.  The 2009 Budget announced that the general rate would be reduced to 10.5% January 1, 2010, and to 10% effective January 1, 2011.  The 2.5% small business rate is effective December 1, 2008.

  5. Manitoba's general tax rate is reduced to 13% effective July 1, 2008, and to 12% effective July 1, 2009.  The small business rate is reduced to 1% for 2009.  The 2009 reductions are subject to budget balancing provisions.

  6. Nova Scotia has a new small business tax deduction which eliminates Nova Scotia corporate income tax for the first 3 taxation years of an eligible new small business (CCPC) after incorporation.

  7. Ontario announced on January 2, 2008 that their small business limit is increased to $500,000 retroactive to January 1, 2007.

  8. Prince Edward Island's small business rate is reduced effective April 1, 2008, and is further reduced to 2.1% effective April 1, 2009 and 1% effective April 1, 2010.

  9. Quebec's general rate increases to 11.9% for 2009 and later years.  The Quebec 2009 budget proposes to increase the business limit to $500,000, effective March 20, 2009.

  10. Saskatchewan's general tax rate is decreased, and the small business limit is increased effective July 1, 2008.

  11. 2009 Federal Budget increased the business limit to $500,000 for 2009.  This change was included in Bill C-10, which received Royal Assent on March 12, 2009.

Sources for the above information

Canada Revenue Agency (CRA)Federal, Provincial and Territorial corporate income tax rates.

Provincial Budgets

Revised: September 19, 2017

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