Newfoundland and Labrador - Provincial corporation tax

What's new for corporations

Lower rate

The lower rate of Newfoundland and Labrador income tax is 4% effective for tax years beginning on or after April 1, 2010. Previously, it was 5%. This lower rate applies to taxable income earned in Newfoundland and Labrador that qualifies for the federal small business deduction.

Higher rate

The higher rate of income tax is 14%. This higher rate applies to taxable income earned in Newfoundland and Labrador that does not qualify for the federal small business deduction.

Note
These rates also apply to income earned in the Newfoundland and Labrador offshore area.

For more information, see Dual tax rates.

Reporting the tax

On line 200 and/or 205 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the amount of tax calculated.

See also Newfoundland and Labrador capital tax on financial institutions.

Claiming the credits

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

• Political contribution tax credit
• Foreign tax credit
• Manufacturing and processing profits tax credit
• Direct equity tax credit
• Resort property investment tax credit
• Small business tax holiday
• Research and development tax credit
• Film and video industry tax credit

Forms and publications

• Schedule 5, Tax Calculation Supplementary - Corporations

Government partners

• Newfoundland and Labrador (provincial site)