Nunavut – Territorial corporation tax

What's new for corporations

Lower rate

The lower rate of Nunavut income tax is 3%. This lower rate applies to taxable income earned in Nunavut that qualifies for the federal small business deduction.

Higher rate

The higher rate of Nunavut income tax is 12%. This rate applies to taxable income earned in Nunavut that does not qualify for the small business deduction.

For more information, see Dual tax rates.

Reporting the tax

You can use Schedule 481, Nunavut Corporation Tax Calculation, to help you calculate the Nunavut tax before the credits are applied. You do not have to file it with your return. See the schedule for more details.

On line 260 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of tax calculated.

Claiming the credits

Nunavut offers 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 481, Nunavut Corporation Tax Calculation
• Schedule 5, Tax Calculation Supplementary – Corporations

Government partners

• Nunavut (territorial site)