Form T2 "Corporation Income Tax Return" - Canada

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Download Form T2 "Corporation Income Tax Return" - Canada

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Clear Data
200
T2 Corporation Income Tax Return
Code 1902
Protected B
(2019 and later tax years)
when completed
This form serves as a federal, provincial, and territorial corporation income tax return, unless the corporation is located in
Quebec or Alberta. If the corporation is located in one of these provinces, you have to file a separate provincial
055
Do not use this area
corporation return. A shorter version of the return, the T2SHORT, is available for eligible corporations.
All legislative references on this return are to the federal Income Tax Act and Income Tax Regulations. This return may
contain changes that had not yet become law at the time of publication.
Send one completed copy of this return, including schedules and the General Index of Financial Information (GIFI), to your
tax centre. You have to file the return within six months after the end of the corporation's tax year.
For more information see
canada.ca/taxes
or Guide T4012, T2 Corporation – Income Tax Guide.
Identification
001
R C
Business number (BN) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporation's name
To which tax year does this return apply?
002
Tax year start
Tax year-end
Year Month Day
Year Month Day
060
061
Address of head office
Has this address changed since the
Has there been an acquisition of control
Yes
No
010
last time we were notified? . . . . . . . .
resulting in the application of
If yes, complete lines 011 to 018.
subsection 249(4) since the tax year
Yes
No
063
start on line 060? . . . . . . . . . . . . . . . . . . .
011
Year Month Day
012
If yes, provide the date control was
065
acquired . . . . . . . . . . . . . . . . . . . . . . . . . . .
City
Province, territory, or state
015
016
Is the date on line 061 a deemed
tax year-end according to
Country (other than Canada)
Postal or ZIP code
Yes
No
066
subsection 249(3.1)? . . . . . . . . . . . . . . . .
017
018
Is the corporation a professional
Mailing address (if different from head office address)
corporation that is a member of a
Yes
No
067
Has this address changed since the
partnership? . . . . . . . . . . . . . . . . . . . . . .
Yes
No
020
last time we were notified? . . . . . . . .
Is this the first year of filing after:
If yes, complete lines 021 to 028.
Yes
No
070
Incorporation? . . . . . . . . . . . . . . . . . . . .
021
c/o
071
Yes
No
Amalgamation? . . . . . . . . . . . . . . . . . . . .
022
If yes, complete lines 030 to 038 and attach Schedule 24.
023
Has there been a wind-up of a
Province, territory, or state
City
subsidiary under section 88 during the
025
026
072
Yes
No
current tax year?
. . . . . . . . . . . . . . . . . .
Country (other than Canada)
Postal or ZIP code
If yes, complete and attach Schedule 24.
027
028
Is this the final tax year before
076
Yes
No
Location of books and records (if different from head office address)
amalgamation? . . . . . . . . . . . . . . . . . . . .
Has this address changed since the
Is this the final return up to
Yes
No
030
078
Yes
No
last time we were notified? . . . . . . . .
dissolution? . . . . . . . . . . . . . . . . . . . . . . .
If yes, complete lines 031 to 038.
If an election was made under section 261, state
079
the functional currency used . . . . . . . . . . . . . .
031
032
080
Yes
No
Is the corporation a resident of Canada?
Province, territory, or state
City
If no, give the country of residence on line 081 and complete and attach
035
036
Schedule 97.
Country (other than Canada)
Postal or ZIP code
081
037
038
Is the non-resident corporation claiming
an exemption under an income tax
040
Type of corporation at the end of the tax year (tick one)
082
Yes
No
treaty? . . . . . . . . . . . . . . . . . . . . . . . . . . .
1 Canadian-controlled private corporation (CCPC)
If yes, complete and attach Schedule 91.
2 Other private corporation
If the corporation is exempt from tax under section 149, tick one of the
following boxes:
3 Public corporation
1 Exempt under paragraph 149(1)(e) or (l)
085
4 Corporation controlled by a public corporation
2 Exempt under paragraph 149(1)(j)
5 Other corporation (specify)
3 Exempt under paragraph 149(1)(t)
(for tax years starting before 2019)
If the type of corporation changed
Year Month Day
during the tax year, provide the
4 Exempt under other paragraphs of section 149
043
effective date of the change . . . . . .
Do not use this area
095
096
898
T2 E (20)
(Ce formulaire est disponible en français.)
Page 1 of 9
Clear Data
200
T2 Corporation Income Tax Return
Code 1902
Protected B
(2019 and later tax years)
when completed
This form serves as a federal, provincial, and territorial corporation income tax return, unless the corporation is located in
Quebec or Alberta. If the corporation is located in one of these provinces, you have to file a separate provincial
055
Do not use this area
corporation return. A shorter version of the return, the T2SHORT, is available for eligible corporations.
All legislative references on this return are to the federal Income Tax Act and Income Tax Regulations. This return may
contain changes that had not yet become law at the time of publication.
Send one completed copy of this return, including schedules and the General Index of Financial Information (GIFI), to your
tax centre. You have to file the return within six months after the end of the corporation's tax year.
For more information see
canada.ca/taxes
or Guide T4012, T2 Corporation – Income Tax Guide.
Identification
001
R C
Business number (BN) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporation's name
To which tax year does this return apply?
002
Tax year start
Tax year-end
Year Month Day
Year Month Day
060
061
Address of head office
Has this address changed since the
Has there been an acquisition of control
Yes
No
010
last time we were notified? . . . . . . . .
resulting in the application of
If yes, complete lines 011 to 018.
subsection 249(4) since the tax year
Yes
No
063
start on line 060? . . . . . . . . . . . . . . . . . . .
011
Year Month Day
012
If yes, provide the date control was
065
acquired . . . . . . . . . . . . . . . . . . . . . . . . . . .
City
Province, territory, or state
015
016
Is the date on line 061 a deemed
tax year-end according to
Country (other than Canada)
Postal or ZIP code
Yes
No
066
subsection 249(3.1)? . . . . . . . . . . . . . . . .
017
018
Is the corporation a professional
Mailing address (if different from head office address)
corporation that is a member of a
Yes
No
067
Has this address changed since the
partnership? . . . . . . . . . . . . . . . . . . . . . .
Yes
No
020
last time we were notified? . . . . . . . .
Is this the first year of filing after:
If yes, complete lines 021 to 028.
Yes
No
070
Incorporation? . . . . . . . . . . . . . . . . . . . .
021
c/o
071
Yes
No
Amalgamation? . . . . . . . . . . . . . . . . . . . .
022
If yes, complete lines 030 to 038 and attach Schedule 24.
023
Has there been a wind-up of a
Province, territory, or state
City
subsidiary under section 88 during the
025
026
072
Yes
No
current tax year?
. . . . . . . . . . . . . . . . . .
Country (other than Canada)
Postal or ZIP code
If yes, complete and attach Schedule 24.
027
028
Is this the final tax year before
076
Yes
No
Location of books and records (if different from head office address)
amalgamation? . . . . . . . . . . . . . . . . . . . .
Has this address changed since the
Is this the final return up to
Yes
No
030
078
Yes
No
last time we were notified? . . . . . . . .
dissolution? . . . . . . . . . . . . . . . . . . . . . . .
If yes, complete lines 031 to 038.
If an election was made under section 261, state
079
the functional currency used . . . . . . . . . . . . . .
031
032
080
Yes
No
Is the corporation a resident of Canada?
Province, territory, or state
City
If no, give the country of residence on line 081 and complete and attach
035
036
Schedule 97.
Country (other than Canada)
Postal or ZIP code
081
037
038
Is the non-resident corporation claiming
an exemption under an income tax
040
Type of corporation at the end of the tax year (tick one)
082
Yes
No
treaty? . . . . . . . . . . . . . . . . . . . . . . . . . . .
1 Canadian-controlled private corporation (CCPC)
If yes, complete and attach Schedule 91.
2 Other private corporation
If the corporation is exempt from tax under section 149, tick one of the
following boxes:
3 Public corporation
1 Exempt under paragraph 149(1)(e) or (l)
085
4 Corporation controlled by a public corporation
2 Exempt under paragraph 149(1)(j)
5 Other corporation (specify)
3 Exempt under paragraph 149(1)(t)
(for tax years starting before 2019)
If the type of corporation changed
Year Month Day
during the tax year, provide the
4 Exempt under other paragraphs of section 149
043
effective date of the change . . . . . .
Do not use this area
095
096
898
T2 E (20)
(Ce formulaire est disponible en français.)
Page 1 of 9
Clear Data
Protected B
when completed
Attachments
Financial statement information: Use GIFI schedules 100, 125, and 141.
Schedules – Answer the following questions. For each yes response, attach the schedule to the T2 return, unless otherwise instructed.
Yes Schedule
150
9
Is the corporation related to any other corporations? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
160
23
Is the corporation an associated CCPC? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
161
49
Is the corporation an associated CCPC that is claiming the expenditure limit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
151
19
Does the corporation have any non-resident shareholders who own voting shares? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Has the corporation had any transactions, including section 85 transfers, with its shareholders, officers, or employees,
162
11
other than transactions in the ordinary course of business? Exclude non-arm's length transactions with non-residents . . . . . . . . . . .
If you answered yes to the above question, and the transaction was between corporations not dealing at arm's length,
163
44
were all or substantially all of the assets of the transferor disposed of to the transferee? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
164
14
Has the corporation paid any royalties, management fees, or other similar payments to residents of Canada? . . . . . . . . . . . . . . . . . .
165
15
Is the corporation claiming a deduction for payments to a type of employee benefit plan? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
166
T5004
Is the corporation claiming a loss or deduction from a tax shelter? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
167
T5013
Is the corporation a member of a partnership for which a partnership account number has been assigned? . . . . . . . . . . . . . . . . . . . .
Did the corporation, a foreign affiliate controlled by the corporation, or any other corporation or trust that did not deal at arm's length
168
22
with the corporation have a beneficial interest in a non-resident discretionary trust (without reference to section 94)? . . . . . . . . . . . .
169
25
Did the corporation own any shares in one or more foreign affiliates in the tax year? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Has the corporation made any payments to non-residents of Canada under subsections 202(1) and/or 105(1) of
170
29
the Income Tax Regulations? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
171
T106
Did the corporation have a total amount over CAN$1 million of reportable transactions with non-arm's length non-residents? . . . . . .
For private corporations: Does the corporation have any shareholders who own 10% or more of the corporation's common
173
50
and/or preferred shares? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
172
Has the corporation made payments to, or received amounts from, a retirement compensation plan arrangement during the year?
180
88
Does the corporation earn income from one or more Internet web pages or websites? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
201
1
Is the net income/loss shown on the financial statements different from the net income/loss for income tax purposes? . . . . . . . . . . .
202
2
Has the corporation made any charitable donations; gifts of cultural or ecological property; or gifts of medicine? . . . . . . . . . . . . . . . .
203
3
Has the corporation received any dividends or paid any taxable dividends for purposes of the dividend refund? . . . . . . . . . . . . . . . .
204
4
Is the corporation claiming any type of losses? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Is the corporation claiming a provincial or territorial tax credit or does it have a
205
5
permanent establishment in more than one jurisdiction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
206
6
Has the corporation realized any capital gains or incurred any capital losses during the tax year? . . . . . . . . . . . . . . . . . . . . . . . . . . .
i) Is the corporation a CCPC and reporting a) income or loss from property (other than dividends deductible on line 320 of the T2
return), b) income from a partnership, c) income from a foreign business, d) income from a personal services business, e) income
referred to in clause 125(1)(a)(i)(C) or 125(1)(a)(i)(B), f) aggregate investment income as defined in subsection 129(4), or g) an
amount assigned to it under subsection 125(3.2) or 125(8); or
ii) Is the corporation a member of a partnership and assigning its specified partnership business limit to a designated member under
207
7
subsection 125(8)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
208
8
Does the corporation have any property that is eligible for capital cost allowance? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
212
12
Does the corporation have any resource-related deductions? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
213
13
Is the corporation claiming deductible reserves? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
216
16
Is the corporation claiming a patronage dividend deduction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
217
17
Is the corporation a credit union claiming a deduction for allocations in proportion to borrowing or a provincial credit union tax reduction?
218
18
Is the corporation an investment corporation or a mutual fund corporation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
220
20
Is the corporation carrying on business in Canada as a non-resident corporation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
221
21
Is the corporation claiming any federal, provincial, or territorial foreign tax credits, or any federal logging tax credits? . . . . . . . . . . . .
227
27
Does the corporation have any Canadian manufacturing and processing profits? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
231
31
Is the corporation claiming an investment tax credit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
232
T661
Is the corporation claiming any scientific research and experimental development (SR&ED) expenditures? . . . . . . . . . . . . . . . . . . . .
233
33/34/35
Is the total taxable capital employed in Canada of the corporation and its related corporations over $10,000,000? . . . . . . . . . . . . . . .
234
Is the total taxable capital employed in Canada of the corporation and its associated corporations over $10,000,000? . . . . . . . . . . . .
238
38
Is the corporation subject to gross Part VI tax on capital of financial institutions? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
242
42
Is the corporation claiming a Part I tax credit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
243
43
Is the corporation subject to Part IV.1 tax on dividends received on taxable preferred shares or Part VI.1 tax on dividends paid? . . .
244
45
Is the corporation agreeing to a transfer of the liability for Part VI.1 tax? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For financial institutions: Is the corporation a member of a related group of financial institutions
250
39
with one or more members subject to gross Part VI tax? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
253
T1131
Is the corporation claiming a Canadian film or video production tax credit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
254
T1177
Is the corporation claiming a film or video production services tax credit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
272
58
Is the corporation claiming a Canadian journalism labour tax credit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
255
92
Is the corporation subject to Part XIII.1 tax? (Show your calculations on a sheet that you identify as Schedule 92.) . . . . . . . . . . . . . .
Page 2 of 9
Clear Data
Protected B
when completed
Attachments (continued)
271
T1134
Did the corporation have any foreign affiliates in the tax year? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Did the corporation own or hold specified foreign property where the total cost amount of all such property, at any time in the year,
259
T1135
was more than CAN$100,000? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
260
T1141
Did the corporation transfer or loan property to a non-resident trust? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
261
T1142
Did the corporation receive a distribution from or was it indebted to a non-resident trust in the year? . . . . . . . . . . . . . . . . . . . . . . . . .
262
T1145
Has the corporation entered into an agreement to allocate assistance for SR&ED carried out in Canada? . . . . . . . . . . . . . . . . . . . . .
263
T1146
Has the corporation entered into an agreement to transfer qualified expenditures incurred in respect of SR&ED contracts? . . . . . . .
Has the corporation entered into an agreement with other associated corporations for salary or wages of
264
T1174
specified employees for SR&ED? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
265
55
Did the corporation pay taxable dividends (other than capital gains dividends) in the tax year? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
266
T2002
Has the corporation made an election under subsection 89(11) not to be a CCPC? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
267
T2002
Has the corporation revoked any previous election made under subsection 89(11)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Did the corporation (CCPC or deposit insurance corporation (DIC)) pay eligible dividends, or did its
268
53
general rate income pool (GRIP) change in the tax year? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Did the corporation (other than a CCPC or DIC) pay eligible dividends, or did its low rate income pool (LRIP)
269
54
change in the tax year? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additional information
Yes
No
270
Did the corporation use the International Financial Reporting Standards (IFRS) when it prepared its financial statements?
280
Yes
No
Is the corporation inactive? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Specify the principal products mined, manufactured,
284
285
%
sold, constructed, or services provided, giving the
286
287
%
approximate percentage of the total revenue that
288
289
%
each product or service represents.
Yes
No
291
Did the corporation immigrate to Canada during the tax year? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Yes
No
292
Did the corporation emigrate from Canada during the tax year? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
293
Yes
No
Do you want to be considered as a quarterly instalment remitter if you are eligible? . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Year Month Day
If the corporation was eligible to remit instalments on a quarterly basis for part of the tax year, provide the date the
294
corporation ceased to be eligible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
295
Yes
No
If the corporation's major business activity is construction, did you have any subcontractors during the tax year? . . . . . .
Taxable income
300
A
Net income or (loss) for income tax purposes from Schedule 1, financial statements, or GIFI . . . . . . . . . . . . . . . . . . . . . . . . . .
Deduct:
311
Charitable donations from Schedule 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
313
Cultural gifts from Schedule 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
314
Ecological gifts from Schedule 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
315
Gifts of medicine made before March 22, 2017, from Schedule 2 . . . . . . . . . . . . . . . . . . . . . . .
Taxable dividends deductible under section 112 or 113, or subsection 138(6)
320
from Schedule 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
325
Part VI.1 tax
deduction*
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
331
Non-capital losses of previous tax years from Schedule 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
332
Net capital losses of previous tax years from Schedule 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
333
Restricted farm losses of previous tax years from Schedule 4 . . . . . . . . . . . . . . . . . . . . . . . . .
334
Farm losses of previous tax years from Schedule 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
335
Limited partnership losses of previous tax years from Schedule 4 . . . . . . . . . . . . . . . . . . . . . .
340
Taxable capital gains or taxable dividends allocated from a central credit union . . . . . . . . . . .
350
Prospector's and grubstaker's shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B
Subtotal (amount A minus amount B) (if negative, enter "0")
C
355
D
Section 110.5 additions or subparagraph 115(1)(a)(vii) additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
360
Taxable income (amount C plus amount D) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
370
Income exempt under paragraph 149(1)(t) (for tax years starting before 2019) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Z
Taxable income for a corporation with exempt income under paragraph 149(1)(t) (line 360 minus line 370) . . . . . . . . . . . . . . . . . .
* This amount is equal to 3.5 times the Part VI.1 tax payable at line 724 on page 9.
Page 3 of 9
Clear Data
Protected B
when completed
Small business deduction
Canadian-controlled private corporations (CCPCs) throughout the tax year
400
A
Income eligible for the small business deduction from Schedule 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxable income from line 360 on page 3, minus 100/28 of the amount on line
632*
on page 8, minus 4 times the amount on
405
B
line
636**
on page 8, and minus any amount that, because of federal law, is exempt from Part I tax . . . . . . . . . . . . . . . . . . .
410
C
Business limit (see notes
1
and
2
below) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notes:
1. For CCPCs that are not associated, enter $500,000 on line 410. However, if the corporation's tax year is less than 51 weeks,
prorate this amount by the number of days in the tax year divided by 365, and enter the result on line 410.
2. For associated CCPCs, use Schedule 23 to calculate the amount to be entered on line 410.
Business limit reduction
Taxable capital business limit reduction
×
=
415
Amount C
***
D
E
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11,250
Passive income business limit reduction
=
****
417
50,000
F
Adjusted aggregate investment income from Schedule 7
. . . . . . . . . . . . .
. . .
×
=
Amount C
Amount F
G
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
100,000
422
H
The greater of amount E and amount G
425
I
Reduced business limit for tax years starting before 2019 (amount C minus amount E) (if negative, enter "0") . . . . . . . . . . .
426
J
Reduced business limit for tax years starting after 2018 (amount C minus amount H) (if negative, enter "0") . . . . . . . . . . . . .
K
Business limit the CCPC assigns under subsection 125(3.2) (from line 515 on page 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
427
L
Reduced business limit after assignment for tax years starting before 2019 (amount I minus amount K) . . . . . . . . . . . .
428
M
Reduced business limit after assignment for tax years starting after 2018 (amount J minus amount K) . . . . . . . . . . . . .
Small business deduction
Tax years starting before 2019
Number of days in the tax year
Amount A, B, C, or L,
×
×
=
17.5%
1
before January 1, 2018
whichever is the least
Number of days in the tax year
Number of days in the tax year after
Amount A, B, C, or L,
×
×
=
December 31, 2017, and before January 1, 2019
18%
2
whichever is the least
Number of days in the tax year
Number of days in the tax year
Amount A, B, C, or L,
×
×
=
after December 31, 2018
19%
3
whichever is the least
Number of days in the tax year
Tax years starting after 2018
4
×
=
19%
Amount A, B, C, or M, whichever is the least . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
430
N
Small business deduction (total of amounts 1 to 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter amount N at amount J on page 8.
*
Calculate the amount of foreign non-business income tax credit deductible on line 632 without reference to the refundable tax on the CCPC's investment
income (line 604) and without reference to the corporate tax reductions under section 123.4.
** Calculate the amount of foreign business income tax credit deductible on line 636 without reference to the corporation tax reductions under section 123.4.
*** Large corporations
If the corporation is not associated with any corporations in both the current and previous tax years, the amount to be entered on line 415 is: (total
taxable capital employed in Canada for the prior year minus $10,000,000) x 0.225%.
If the corporation is not associated with any corporations in the current tax year, but was associated in the previous tax year, the amount to be entered
on line 415 is: (total taxable capital employed in Canada for the current year minus $10,000,000) x 0.225%.
For corporations associated in the current tax year, see Schedule 23 for the special rules that apply.
**** Enter the total adjusted aggregate investment income of the corporation and all associated corporations for each tax year that ended in the preceding
calendar year. Each corporation with such income has to file a Schedule 7. For a corporation's first tax year that starts after 2018, this amount is
reported at line 744 of the corresponding Schedule 7. Otherwise, this amount is the total of all amounts reported at line 745 of the corresponding
Schedule 7 of the corporation for each tax year that ended in the preceding calendar year.
Page 4 of 9
Clear Data
Protected B
when completed
Small business deduction (continued)
Specified corporate income and assignment under subsection 125(3.2)
O
P
Q
Business number of
Income paid under
Business limit assigned to
the corporation
clause 125(1)(a)(i)(B) to the
corporation identified in
receiving the
corporation identified in
4
column O
assigned amount
3
column O
490
505
500
1.
2.
3.
4.
515
Total
510
Total
Notes:
3. This amount is [as defined in subsection 125(7) specified corporate income (a)(i)] the total of all amounts each of which is income from an active
business of the corporation for the year from the provision of services or property to a private corporation (directly or indirectly, in any manner
whatever) if
(A) at any time in the year, the corporation (or one of its shareholders) or a person who does not deal at arm's length with the corporation (or one of its
shareholders) holds a direct or indirect interest in the private corporation, and
(B) it is not the case that all or substantially all of the corporation's income for the year from an active business is from the provision of services or
property to
(I) persons (other than the private corporation) with which the corporation deals at arm's length, or
(II) partnerships with which the corporation deals at arm's length, other than a partnership in which a person that does not deal at arm's length
with the corporation holds a direct or indirect interest.
4. The amount of the business limit you assign to a CCPC cannot be greater than the amount determined by the formula A – B, where A is the amount of
income referred to in column P in respect of that CCPC and B is the portion of the amount described in A that is deductible by you in respect of the
amount of income referred to in clauses 125(1)(a)(i)(A) or (B) for the year. The amount on line 515 cannot be greater than the amount on line 425 (426
for tax years starting after 2018).
General tax reduction for Canadian-controlled private corporations
Canadian-controlled private corporations throughout the tax year
A
Taxable income from page 3 (line 360 or amount Z, whichever applies) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B
Lesser of amounts 9B and 9H from Part 9 of Schedule 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C
Amount 13K from Part 13 of Schedule 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D
432
Personal services business income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amount from line 400, 405, 410, or 427 (428 instead of 427 for tax years starting after 2018)
E
on page 4, whichever is the least . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F
Aggregate investment income from line 440 on page
6*
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtotal (add amounts B to F)
G
H
Amount A minus amount G (if negative, enter "0") . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
I
General tax reduction for Canadian-controlled private corporations – Amount H multiplied by 13% . . . . . . . . . . . . . . . . . . . . .
Enter amount I on line 638 on page 8.
* Except for a corporation that is, throughout the year, a cooperative corporation (within the meaning assigned by subsection 136(2)) or a credit union.
General tax reduction
Do not complete this area if you are a Canadian-controlled private corporation, an investment corporation, a mortgage investment corporation, a
mutual fund corporation, or any corporation with taxable income that is not subject to the corporation tax rate of 38%.
J
Taxable income from page 3 (line 360 or amount Z, whichever applies) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
K
Lesser of amounts 9B and 9H from Part 9 of Schedule 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
L
Amount 13K from Part 13 of Schedule 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
M
434
Personal services business income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtotal (add amounts K to M)
N
O
Amount J minus amount N (if negative, enter "0") . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
P
General tax reduction – Amount O multiplied by 13% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter amount P on line 639 on page 8.
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