Canada Revenue Agency
www.cra.gc.ca
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Ontario - Provincial corporation tax
What's new for corporations
Basic rate
The Ontario basic income tax rate is 12%, effective July 1, 2010 (it was previously 14%). It will be reduced as follows:
- 11.5% effective July 1, 2011;
- 11% effective July 1, 2012; and
- 10% effective July 1, 2013.
The tax is prorated based on the number of days in the year when the tax year straddles these dates.
Lower rate
The Ontario small business deduction reduces Ontario basic income tax by 8.5%, resulting in a lower tax rate of 5.5%. This tax rate was reduced to 4.5% effective July 1, 2010.
Reporting the tax
The harmonized return will include the following Ontario corporation taxes:
- Basic income tax
- Surtax re Ontario small business deduction
- Corporate minimum tax
- Special additional tax re life insurance
- Capital tax
- Additional tax re Crown royalties
Transitional measures
The Ontario transitional tax debits and credits provide a transition from the Corporations Tax Act (Ontario) for corporations with different income tax attributes for federal and Ontario purposes.
Claiming the credits
Ontario offers different tax credits. Details of each credit can be found in the following pages and their associated schedules:
- Apprenticeship training tax credit
- Business-research institute tax credit
- Capital gains refund
- Co-operative education tax credit
- Corporate minimum tax credit
- Credit union tax reduction
- Foreign tax credit
- Innovation tax credit
- Political contributions tax credit
- Qualifying environmental trust tax credit
- Refundable media tax credits
- Book publishing tax credit
- Computer animation and special effects tax credit
- Interactive digital media tax credit
- Film and television tax credit
- Production services tax credit
- Sound recording tax credit
- Research and development tax credit
- Resource tax credit
- Tax credit for manufacturing and processing
