British Columbia small business venture capital tax credit

Corporations investing in shares of a registered venture capital corporation or eligible business corporation can claim a British Columbia venture capital tax credit. The British Columbia government issues a certificate called Form SBVC 10 to these corporations.

Eligible business corporations participating in the small business venture capital program are allowed to claim the British Columbia interactive digital media tax credit.

As of March 2, 2019, a convertible right investment in an eligible business corporation is eligible for a tax credit. A tax credit certificate is issued when the investment is made, not when the convertible right converts to shares.

Apply the venture capital tax credit first to reduce the British Columbia provincial tax payable for the year to zero. If unclaimed credits remain, you can carry them forward for four tax years to reduce the British Columbia tax payable.

For more information about this credit, see section 21 of the British Columbia Income Tax Act.

Claiming the credit

On line 880 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the unclaimed tax credit, if any, at the end of the previous tax year.

On line 881, enter the tax credit amount available in the current year as reported on Form SBVC 10.

On line 882, enter the nine-digit certificate number from Form SBVC 10.

On line 883, enter the amount of the credit transferred on an amalgamation.

On line 656, enter the tax credit amount you are claiming.

Supporting documents  You do not have to file the certificate with your return. However, keep it in case the CRA asks for it later.

Forms and publications

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