Ontario - Provincial corporation tax

For a summary of the most recent changes, see What's new for corporations.

For tax years ending in 2009 or later, corporations that have a permanent establishment in Ontario will file a harmonized T2 Corporation Income Tax Return with the Canada Revenue Agency (CRA). The harmonized return will include the following Ontario corporation taxes: corporate income tax, including refundable tax credits, corporate minimum tax, capital tax, and special additional tax on life insurance corporations.

If a corporation's fluctuating fiscal period ends in January 2009 and it does not have a tax year ending in 2008, send your instalments and payments for the Ontario corporations tax to the Ontario Ministry of Revenue for that fluctuating fiscal period. File a CT23 Corporations Tax and Annual Return or a Corporations Tax Return CT8 with the Ontario Ministry of Revenue for that same fluctuating fiscal period.

Basic rate

The Ontario basic income tax rate is 14%.

Lower rate

The Ontario small business deduction reduces Ontario basic income tax by 8.5%.

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

• Transitional tax debits/credits

Claiming the credits

• 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 contribution 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

Other requirements

• Ontario specialty types
• Ministry of Government Services (MGS) annual return

Forms and publications

• Schedule 5, Tax Calculation Supplementary - Corporations
• Schedule 500, Ontario Corporation Tax Calculation

Government partners

• Ontario (Ministry of Revenue)
• Ontario (e-Laws)