British Columbia – Provincial corporation tax

What's new for corporations

Lower rate

The lower rate of British Columbia income tax is 2.5%.

The income eligible for the lower rate is determined using the British Columbia business limit of $500,000.

Higher rate

The higher rate of British Columbia income tax is:

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

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

The tax is prorated based on the number of days in the year when the tax year straddles these dates.

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:

• Book publishing tax credit
• Film and television tax credit
• Foreign tax credit
• Interactive digital media tax credit
• Logging tax credit
• Manufacturing and processing tax credit
• Mining exploration tax credit
• Political contribution tax credit
• Production services tax credit
• Qualifying environmental trust tax credit
• Shipbuilding and ship repair industry tax credit
• Small business venture capital tax credit
• SR&ED non-refundable tax credit
• SR&ED refundable 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)