What is the ‘small business deduction’?
Allan Madan, CA
The small business deduction is a reduction in corporate taxes for Canadian Controlled Private Corporation, known as CCPC. The small business deduction is provided as an annual tax credit that is calculated as 17% of the least of the corporation’s:
- Active business income for the year
- taxable income for the year
- business limit ($500,000)
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CA.CPA.CGA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
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