CCPC
Loopholes Tagged "CCPC"
Plain-English guides to Canadian legal rights and workarounds related to CCPC.
Small Business Deduction — Pay 9% Federal Corporate Tax Instead of 15%
Canadian-Controlled Private Corporations (CCPCs) pay only 9% federal corporate tax on the first $500,000 of active business income — versus 15% for larger corporations — cutting the federal tax bill nearly in half on eligible income.
SR&ED Tax Credits — Recover Up to 35% of R&D Costs from the CRA
Canadian businesses doing qualifying research, development, or technological problem-solving can claim the Scientific Research and Experimental Development (SR&ED) tax credit — a refundable 35% federal credit for small CCPCs on eligible expenditures up to $3 million, plus additional provincial credits.
Employment Stock Option Deduction — Reduce Tax on CCPC Stock Options by 50%
Employees of Canadian-controlled private corporations who exercise stock options may qualify for a 50% deduction that cuts the effective tax rate on option gains roughly in half — if the right conditions are met.