Corporate Tax

Corporate Tax

Generally, all corporation taxes are due two months after the end of the tax year.

However the balance of tax is due three months after the end of the tax year if conditions 1 and 2 that follow are met, as well as condition 3 or 4:

  1. the corporation is a Canadian-controlled private corporation (CCPC) throughout the tax year
  2. the corporation claimed the small business deduction for the current or previous tax year
  3. the corporation's taxable income for the previous tax year does not exceed its business limit for that tax year (if the corporation is not associated with any other corporation during the tax year)
  4. the total of the taxable incomes of all the associated corporations for their last tax year ending in the previous calendar year does not exceed the total of their business limits for those tax years (if the corporation is associated with any other corporation during the tax year)

2019 Corporate Tax Rates

General Small Business (CCPC) Business Limit Investment Income (CCPC)
Federal 15% 9% $500,000 38.7%
Alberta 11% * 2% $500,000 12.0%

* Effective January 1, 2020, the rate will decrease to 10%

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