Nova Scotia – Provincial corporation tax
Nova Scotia announced the creation of two new credits, the Nova Scotia innovation equity tax credit and the Nova Scotia venture capital tax credit. See what's new for Nova Scotia corporations.
The lower rate of Nova Scotia income tax is 3%.
The income eligible for the lower rate is determined using the Nova Scotia business limit, which is $500,000 effective January 1, 2017. It was previously $350,000.
If the business limit changes in the tax year, you have to base your calculations on the number of days in the year that each business limit is in effect.
The higher rate of income tax is 16%. This rate applies to taxable income earned in Nova Scotia that does not qualify for the lower rate.
These rates also apply to the income earned in the Nova Scotia offshore area.
For more information, see Dual tax rates.
Reporting the tax
You can use Schedule 346, Nova Scotia Corporation Tax Calculation, to help you calculate the Nova Scotia tax before the application of credits. You do not have to file it with the return. See the schedule for more details.
On line 215 and/or 220 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of tax calculated.
Claiming the credits
Nova Scotia offers different tax credits. Details of each credit can be found in the following pages and their associated schedules:
Forms and publications
- Nova Scotia (provincial site)
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