Northwest Territories – Territorial corporation tax

What's new for corporations

Lower rate

The lower rate of Northwest Territories income tax is 2% effective January 1, 2021. It was previously 4%. This lower rate applies to taxable income earned in the Northwest Territories that qualifies for the federal small business deduction.

If the rate changes during the tax year, you have to base your calculation on the number of days in the year that each rate is in effect.

Higher rate

The higher rate of the Northwest Territories income tax is 11.5%. This rate applies to taxable income earned in the Northwest Territories that does not qualify for the federal small business deduction.

For more information, see Dual tax rates.

Reporting the tax

You can use Schedule 461, Northwest Territories Corporation Tax Calculation, to help you calculate the Northwest Territories tax before the credits are applied. You do not have to file it with your return. See the schedule for more details.

On line 250 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of tax calculated.

Claiming the credits

The Northwest Territories offer two tax credits. Details can be found in the following pages and their associated schedules:

• Foreign tax credit
• Political contribution tax credit

Forms and publications

• Schedule 461, Northwest Territories Corporation Tax Calculation
• Schedule 5, Tax Calculation Supplementary – Corporations

Government partners

• Northwest Territories (territorial site)