Form T2 Schedule 49 "Agreement Among Associated Canadian-Controlled Private Corporations to Allocate the Expenditure Limit (2019 and Later Tax Years)" - Canada

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Download Form T2 Schedule 49 "Agreement Among Associated Canadian-Controlled Private Corporations to Allocate the Expenditure Limit (2019 and Later Tax Years)" - Canada

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Clear Data
Schedule 49
Code 1901
Agreement Among Associated Canadian-Controlled Private Corporations
Protected B
when completed
to Allocate the Expenditure Limit (2019 and later tax years)
Use this schedule to allocate the annual expenditure limit among associated Canadian-controlled private corporations (CCPCs), (subsection 127(10.2) of
the Income Tax Act), in order to calculate the investment tax credit eligible for the 35% rate on qualifying scientific research and experimental
development expenditures.
An associated CCPC that has more than one tax year ending in a calendar year is required to file an agreement for each tax year ending in that
calendar year.
Column 1: Enter the legal name of each corporation in the associated group, including CCPCs and non-CCPCs. Do not include corporations
deemed not to be associated under subsection 127(10.22) of the Income Tax Act.
Column 2: Provide the business number for each corporation listed in column 1 (if a corporation is not registered, enter "NR").
Column 3: Enter "1" for CCPCs or "2" for non-CCPCs that applies for each corporation identified in columns 1 and 2.
Column 4: Enter the amount of the expenditure limit allocated to each corporation that has type of corporation code 1 in column 3. The rules for
determining the expenditure limit that can be allocated (subsection 127(10.2) of the Income Tax Act) are explained below.
Allocating the expenditure limit
Year
Month
Day
025
Date filed (do not use this area) ...........................................................................................
Year
050
Enter the calendar year to which the agreement applies ...............................................................
Is this an amended agreement for the above-noted calendar year that is intended to replace
1 Yes
2 No
075
an agreement previously filed by any of the associated corporations listed below?.................................
2
3
4
1
Business number of
Type of
Expenditure limit
allocated*
Names of associated corporations
associated corporations
corporation code
$
100
200
300
400
1.
2.
3.
4.
5.
The expenditure limit (cannot be more than $3,000,000)
410
The expenditure limit is calculated as follows:
A = the greater of:
$500,000; and
the total of all taxable income (before applying specified future tax consequences, including any loss carrybacks) of all associated
corporations identified in columns 1 and 2 for their last tax
years**
ending in the previous calendar year.
B = the total of all taxable capital employed in Canada of all associated corporations for their last tax year ending in the previous
calendar year minus $10 million. If this amount is negative, enter "0". If this amount is over $40 million, enter $40 million.
Amount A
425
Amount B
495
For tax years ending before March 19, 2019
×
($8,000,000 minus 10A)
[($40,000,000 minus B) divided by $40,000,000)]
For tax years ending after March 18, 2019
×
($3,000,000)
[($40,000,000 minus B) divided by $40,000,000)]
* The expenditure limit allocated to a particular corporation cannot be more than the amount calculated under subsection 127(10.2) for that
corporation's tax year ending in the calendar year. Special rules apply if a CCPC has more than one tax year ending in a calendar year and is
associated in more than one of those years with another CCPC that has a tax year ending in the same calendar year. In this case, the expenditure
limit for the second (and subsequent) tax year(s) will be equal to the expenditure limit allocated for the first tax year ending in the calendar year.
** If any of the tax years referred to in A above are less than 51 weeks, gross up the taxable incomes for those tax years by the ratio that 365 is of the
number of days in those tax years. Use these grossed up amounts when calculating the expenditure limit.
T2 SCH 49 E (19)
(Ce formulaire est disponible en français.)
Clear Data
Schedule 49
Code 1901
Agreement Among Associated Canadian-Controlled Private Corporations
Protected B
when completed
to Allocate the Expenditure Limit (2019 and later tax years)
Use this schedule to allocate the annual expenditure limit among associated Canadian-controlled private corporations (CCPCs), (subsection 127(10.2) of
the Income Tax Act), in order to calculate the investment tax credit eligible for the 35% rate on qualifying scientific research and experimental
development expenditures.
An associated CCPC that has more than one tax year ending in a calendar year is required to file an agreement for each tax year ending in that
calendar year.
Column 1: Enter the legal name of each corporation in the associated group, including CCPCs and non-CCPCs. Do not include corporations
deemed not to be associated under subsection 127(10.22) of the Income Tax Act.
Column 2: Provide the business number for each corporation listed in column 1 (if a corporation is not registered, enter "NR").
Column 3: Enter "1" for CCPCs or "2" for non-CCPCs that applies for each corporation identified in columns 1 and 2.
Column 4: Enter the amount of the expenditure limit allocated to each corporation that has type of corporation code 1 in column 3. The rules for
determining the expenditure limit that can be allocated (subsection 127(10.2) of the Income Tax Act) are explained below.
Allocating the expenditure limit
Year
Month
Day
025
Date filed (do not use this area) ...........................................................................................
Year
050
Enter the calendar year to which the agreement applies ...............................................................
Is this an amended agreement for the above-noted calendar year that is intended to replace
1 Yes
2 No
075
an agreement previously filed by any of the associated corporations listed below?.................................
2
3
4
1
Business number of
Type of
Expenditure limit
allocated*
Names of associated corporations
associated corporations
corporation code
$
100
200
300
400
1.
2.
3.
4.
5.
The expenditure limit (cannot be more than $3,000,000)
410
The expenditure limit is calculated as follows:
A = the greater of:
$500,000; and
the total of all taxable income (before applying specified future tax consequences, including any loss carrybacks) of all associated
corporations identified in columns 1 and 2 for their last tax
years**
ending in the previous calendar year.
B = the total of all taxable capital employed in Canada of all associated corporations for their last tax year ending in the previous
calendar year minus $10 million. If this amount is negative, enter "0". If this amount is over $40 million, enter $40 million.
Amount A
425
Amount B
495
For tax years ending before March 19, 2019
×
($8,000,000 minus 10A)
[($40,000,000 minus B) divided by $40,000,000)]
For tax years ending after March 18, 2019
×
($3,000,000)
[($40,000,000 minus B) divided by $40,000,000)]
* The expenditure limit allocated to a particular corporation cannot be more than the amount calculated under subsection 127(10.2) for that
corporation's tax year ending in the calendar year. Special rules apply if a CCPC has more than one tax year ending in a calendar year and is
associated in more than one of those years with another CCPC that has a tax year ending in the same calendar year. In this case, the expenditure
limit for the second (and subsequent) tax year(s) will be equal to the expenditure limit allocated for the first tax year ending in the calendar year.
** If any of the tax years referred to in A above are less than 51 weeks, gross up the taxable incomes for those tax years by the ratio that 365 is of the
number of days in those tax years. Use these grossed up amounts when calculating the expenditure limit.
T2 SCH 49 E (19)
(Ce formulaire est disponible en français.)