Small Business Deduction
The small business deduction is a reduction in corporate taxes for Canadian controlled private corporations, or CCPCs. The reduced rate of tax is available on active business income up to the corporation's business limit for the year. The federal business limit is $500,000 for 2009 and later years. The Federal 2016 Budget made changes regarding partnerships and corporate structures which have the effect of multiplying the amount of the small business deduction. See Small Business Taxation on the 2016 Budget website. These changes were included in Bill C-29, which received Royal Assent December 16, 2016.
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Original Article Posted on: May 20, 2021
Link to Original Article: https://www.taxtips.ca/glossary/smallbusinessdeduction.htm