Nova Scotia – Provincial corporation tax
Changes in the administration of the Nova Scotia provincial capital tax on financial institutions have been announced. See What's New for Nova Scotia corporations.
The lower rate of Nova Scotia income tax is 2.5% effective April 1, 2020. It was previously 3%.
The income eligible for the lower rate is determined using the $500,000 Nova Scotia business limit.
The higher rate of income tax is 14% effective April 1, 2020. It was previously 16%. This rate applies to taxable income earned in Nova Scotia that does not qualify for the lower rate.
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.
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:
- Capital investment tax credit
- Corporate tax reduction for new small businesses
- Digital animation tax credit
- Digital media tax credit
- Film industry tax credit (ended – see transitional measures)
- Food bank tax credit for farmers
- Foreign tax credit
- Innovation equity tax credit
- Political contribution tax credit
- Research and development tax credit
- Venture capital tax credit
Forms and publications
- Nova Scotia (provincial site)
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