Ontario corporate minimum tax credit

The Ontario corporate minimum tax credit may be deducted from Ontario corporate income tax payable for the tax year. It is equal to the least of:

• the corporate minimum tax credit available for the tax year;
• the Ontario corporate income tax payable (before the corporate minimum tax credit) minus the greater of the corporate minimum tax after the foreign tax credit deduction and gross special additional tax on life insurance corporations for the tax year; and
• the Ontario corporate income tax payable (before the corporate minimum tax credit) minus the total refundable tax credits for the tax year.

Refer to section 53 of the Taxation Act, 2007 (Ontario) for details.

Carrying forward minimum tax credits

The minimum tax credit carryforward at the beginning of the tax year is equal to the minimum tax and special additional tax paid in previous tax years less any corporate minimum tax credit previously deducted or expired. Only special additional tax paid in a tax year ending after 2008 is included.

A corporate minimum tax loss earned in a tax year ending before March 23, 2007, may be carried forward 10 years.

A loss earned in a tax year ending after March 22, 2007, may be carried forward 20 years.

Claiming the credit

Complete Parts 4, 5, and 6 of Schedule 510, Ontario Corporate Minimum Tax, to calculate the corporate minimum tax credit carryforward and the credit deducted in the current tax year.

On line 418 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the amount of the credit deducted in the current tax year.

Forms and publications

• Schedule 5, Tax Calculation Supplementary - Corporations
• Schedule 510, Ontario Corporate Minimum Tax

Government partners

• Ontario (Ministry of Revenue)
• Ontario (e-Laws)