Prince Edward Island – Provincial corporation tax
The lower rate of Prince Edward Island income tax is 4.5%, effective April 1, 2013. It was previously 1%, since April 1, 2010.
The tax is prorated based on the number of days in the year when the tax year straddles one of these dates.
This rate applies to:
- taxable income earned in Prince Edward Island that qualifies for the federal small business deduction; and
- a credit union's income that qualifies for the additional deduction under subsection137(3) of the federal Income Tax Act.
The higher rate of income tax is 16 %. This rate applies to taxable income that does not qualify for the federal small business deduction.
For more information, see Dual tax rates.
Reporting the tax
You can use Schedule 322, Prince Edward Island Corporation Tax Calculation, to help you calculate the Prince Edward Island tax before the credits are applied. You do not have to file it with your return. See the schedule for more details.
On line 210 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of tax calculated.
Claiming the credits
Prince Edward Island offers different tax credits. Details of each credit can be found in the following pages and their associated schedules:
Forms and publications
- Schedule 322, Prince Edward Island Corporation Tax Calculation
- Schedule 5, Tax Calculation Supplementary – Corporations
- Prince Edward Island (provincial site)
- Date modified: