Form T2 Schedule 341 "Nova Scotia Corporate Tax Reduction for New Small Businesses (2019 and Later Tax Years)" - Canada

ADVERTISEMENT
ADVERTISEMENT

Download Form T2 Schedule 341 "Nova Scotia Corporate Tax Reduction for New Small Businesses (2019 and Later Tax Years)" - Canada

481 times
Rate (4.7 / 5) 34 votes
Clear Data
Schedule 341
Protected B
Nova Scotia Corporate Tax Reduction for New Small Businesses
when completed
(2019 and later tax years)
Tax year-end
Corporation's name
Business number
Year
Month
Day
• The Nova Scotia corporate tax reduction for new small businesses applies to the first three tax years of a qualifying Canadian-controlled private
corporation (CCPC) incorporated in Nova Scotia. A CCPC not incorporated in Nova Scotia may also be eligible for the reduction, provided the
head office of the corporation is located in Nova Scotia and at least 25% of the wages and salaries paid by the corporation in the tax year are
paid to employees who are resident in Nova Scotia. The corporation must have at least two employees, one of whom must be full-time and not
related to a specified shareholder of the corporation.
• This reduction is only available to a corporation that qualifies for the federal small business deduction for the year and maintained a permanent
establishment in Nova Scotia at any time during the year.
• The tax reduction is based on the portion of an eligible corporation's taxable income earned in the year in Nova Scotia.
• The Nova Scotia Department of Finance and Treasury Board administers the eligibility requirements. Corporations claiming the reduction have to
apply annually to the Nova Scotia Minister of Finance and Treasury Board for a certificate of eligibility and must do so within three years of the
tax year-end for which they are claiming the reduction.
• The reduction is not available to a corporation:
– if it, or any predecessor corporation, was associated with another corporation at any time since the date of incorporation. However, associated
corporations may have their ineligibility waived by the Nova Scotia Minister of Finance and Treasury Board
– that carries on the professional practice of an accountant, dentist, lawyer, medical doctor, veterinarian, or chiropractor
– if it, or any predecessor corporation, was the beneficiary of a trust with an ineligible beneficiary at any time since the date of incorporation
– if it, or any predecessor corporation, was a member of a partnership or a co-venturer in a joint venture with an ineligible partner or co-venturer at
any time since the date of incorporation
– if, before incorporation, the same or substantially the same business was carried on as a sole proprietorship, partnership, or corporation, whether
registered or not. However, if the sole proprietorship or partnership carried on the same or substantially the same business for 90 days or less
before incorporation, the corporation can apply to the Minister for a certificate of eligibility
• This schedule is a worksheet only and is not required to be filed with your T2 Corporation Income Tax Return. Enter amount C from this schedule and the
certificate number issued by the province on line 556 and line 834 respectively of Schedule 5, Tax Calculation Supplementary – Corporations.
Nova Scotia corporate tax reduction for new small businesses
A
Line 400, 405, 410, and 427 or 428
*
of the T2 return, whichever is the least . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
×
Taxable income for Nova Scotia
**
B
Amount A
=
. . . . . . . . . . . . . . . . . . . .
Taxable income for all provinces
***
Nova Scotia corporate tax reduction for new small businesses:
×
=
Amount B
C
3%
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter amount C on line 556 of Schedule 5.
* If your tax year starts before 2019, use line 427. If your tax year starts after 2018, use line 428.
** If the corporation has a permanent establishment only in Nova Scotia or in the offshore area of Nova Scotia, enter the taxable income from
line 360 of the T2 return. Otherwise, enter the total of the taxable incomes allocated to both jurisdictions in Nova Scotia (the province itself
and the offshore area) from column F in Part 1 of Schedule 5.
*** Includes the territories and the offshore jurisdictions for Nova Scotia and Newfoundland and Labrador.
T2 SCH 341 E (19)
(Ce formulaire et disponible en français.)
Clear Data
Schedule 341
Protected B
Nova Scotia Corporate Tax Reduction for New Small Businesses
when completed
(2019 and later tax years)
Tax year-end
Corporation's name
Business number
Year
Month
Day
• The Nova Scotia corporate tax reduction for new small businesses applies to the first three tax years of a qualifying Canadian-controlled private
corporation (CCPC) incorporated in Nova Scotia. A CCPC not incorporated in Nova Scotia may also be eligible for the reduction, provided the
head office of the corporation is located in Nova Scotia and at least 25% of the wages and salaries paid by the corporation in the tax year are
paid to employees who are resident in Nova Scotia. The corporation must have at least two employees, one of whom must be full-time and not
related to a specified shareholder of the corporation.
• This reduction is only available to a corporation that qualifies for the federal small business deduction for the year and maintained a permanent
establishment in Nova Scotia at any time during the year.
• The tax reduction is based on the portion of an eligible corporation's taxable income earned in the year in Nova Scotia.
• The Nova Scotia Department of Finance and Treasury Board administers the eligibility requirements. Corporations claiming the reduction have to
apply annually to the Nova Scotia Minister of Finance and Treasury Board for a certificate of eligibility and must do so within three years of the
tax year-end for which they are claiming the reduction.
• The reduction is not available to a corporation:
– if it, or any predecessor corporation, was associated with another corporation at any time since the date of incorporation. However, associated
corporations may have their ineligibility waived by the Nova Scotia Minister of Finance and Treasury Board
– that carries on the professional practice of an accountant, dentist, lawyer, medical doctor, veterinarian, or chiropractor
– if it, or any predecessor corporation, was the beneficiary of a trust with an ineligible beneficiary at any time since the date of incorporation
– if it, or any predecessor corporation, was a member of a partnership or a co-venturer in a joint venture with an ineligible partner or co-venturer at
any time since the date of incorporation
– if, before incorporation, the same or substantially the same business was carried on as a sole proprietorship, partnership, or corporation, whether
registered or not. However, if the sole proprietorship or partnership carried on the same or substantially the same business for 90 days or less
before incorporation, the corporation can apply to the Minister for a certificate of eligibility
• This schedule is a worksheet only and is not required to be filed with your T2 Corporation Income Tax Return. Enter amount C from this schedule and the
certificate number issued by the province on line 556 and line 834 respectively of Schedule 5, Tax Calculation Supplementary – Corporations.
Nova Scotia corporate tax reduction for new small businesses
A
Line 400, 405, 410, and 427 or 428
*
of the T2 return, whichever is the least . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
×
Taxable income for Nova Scotia
**
B
Amount A
=
. . . . . . . . . . . . . . . . . . . .
Taxable income for all provinces
***
Nova Scotia corporate tax reduction for new small businesses:
×
=
Amount B
C
3%
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter amount C on line 556 of Schedule 5.
* If your tax year starts before 2019, use line 427. If your tax year starts after 2018, use line 428.
** If the corporation has a permanent establishment only in Nova Scotia or in the offshore area of Nova Scotia, enter the taxable income from
line 360 of the T2 return. Otherwise, enter the total of the taxable incomes allocated to both jurisdictions in Nova Scotia (the province itself
and the offshore area) from column F in Part 1 of Schedule 5.
*** Includes the territories and the offshore jurisdictions for Nova Scotia and Newfoundland and Labrador.
T2 SCH 341 E (19)
(Ce formulaire et disponible en français.)