Nova Scotia – Provincial corporation tax
The Province announced the creation of a new credit, the Nova Scotia food bank tax credit for farmers.
The lower rate of Nova Scotia income tax is 3% as of January 1, 2014. It was previously 3.5%.
The income eligible for the lower rate is determined using the Nova Scotia business limit, which is $350,000 effective January 1, 2014. It was previously $400,000.
The tax is prorated for tax years that straddle January 1, 2014.
The higher rate of income tax is 16%. This rate applies to taxable income earned in Nova Scotia that does not qualify for the lower rate.
These rates also apply to the income earned in the Nova Scotia offshore area.
For more information, see Dual tax rates.
Reporting the tax
You can use Schedule 346, Nova Scotia Corporation Tax Calculation, to help you calculate the Nova Scotia tax before the application of credits. You do not have to file it with the return. See the schedule for more details.
On line 215 and/or 220 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of tax calculated.
Claiming the credits
Nova Scotia offers different tax credits. Details of each credit can be found in the following pages and their associated schedules:
- Capital investment tax credit
- Corporate tax reduction for new small businesses
- Digital animation tax credit
- Digital media tax credit
- Film industry tax credit
- Foreign tax credit
- Political contribution tax credit
- Research and development tax credit
Forms and publications
- Schedule 346, Nova Scotia Corporation Tax Calculation
- Schedule 5, Tax Calculation Supplementary – Corporations
- Nova Scotia (provincial site)
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