buksoSmall business deduction corporation CCPC 500000
Not tax advice. General bookkeeping information only, checked against the official sources linked below (Canada Revenue Agency, IRS, provincial governments and Justice Laws) on Oct 17, 2026. Rules change; check with your accountant before you file.
Canada
A Canadian-controlled private corporation (CCPC) pays a lower federal tax rate on its first $500,000 of active business income a year (the small business deduction). Associated corporations share the $500,000, and it shrinks when taxable capital is between $10 million and $50 million or passive investment income is between $50,000 and $150,000. Provinces have their own small business rates (Alberta 2%, BC 2%).
Official source: canada.ca