British Columbia - Provincial corporation tax

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

Lower rate

The lower rate of British Columbia income tax is 2.5% effective December 1, 2008. The lower rate was 3.5% effective July 1, 2008 and before this date it was 4.5%.

The income eligible for the lower rate is determined using the British Columbia business limit of $400,000. The business limit will be increased to $500,000 effective January 1, 2010.

Higher rate

The higher rate of British Columbia income tax is 11% effective July 1, 2008. Before this date it was 12%. The higher rate will decrease to;

• 10.5% effective January 1, 2010; and to
• 10% effective January 1, 2011.

The higher rate applies to all income not eligible for the lower rate.

When the rate or the business limit changes during the tax year, you have to base your calculation on the number of days in the year that each rate or limit is in effect.

For more information, see Dual tax rates.

Reporting the tax

You can use Schedule 427, British Columbia Corporation Tax Calculation, to help you calculate your British Columbia tax before the application of credits. You do not have to file it with the return.

For more information see the schedule and sections 14, 14.1, and 16 of the British Columbia Income Tax Act.

On line 240 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the amount of tax calculated.

Claiming the credits

British Columbia offers different tax credits. Details of each credit can be found in the following pages and their associated schedules:

• Foreign tax credit
• Logging tax credit
• Political contribution tax credit
• Small business venture capital tax credit
• Manufacturing and processing tax credit
• SR&ED refundable tax credit
• SR&ED non-refundable tax credit
• Qualifying environmental trust tax credit
• Film and television tax credit
• Production services tax credit
• Mining exploration tax credit
• Book publishing tax credit
• Training tax credit

Forms and publications

• Schedule 427, British Columbia Corporation Tax Calculation
• Schedule 5, Tax Calculation Supplementary - Corporations

Government partners

• British Columbia (provincial site)