The 2013 British Columbia budget proposes that the higher rate of corporation income tax be increased to 11% effective April 1, 2013.
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.
The higher rate of British Columbia income tax is:
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.
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.
British Columbia offers different tax credits. Details of each credit can be found in the following pages and their associated schedules: