Ontario corporate minimum tax credit

The Ontario corporate minimum tax credit that may be deducted from Ontario corporate income tax payable for the tax year is equal to the least of:

• the corporate minimum tax credit available for the tax year
• the Ontario corporate income tax payable (before the corporate minimum tax credit) minus the greater of the following two amounts:
  • the corporate minimum tax after foreign tax credit deduction
  • the gross special additional tax on life insurance corporations for the tax year 
• the Ontario corporate income tax payable (before the corporate minimum tax credit) minus the total refundable tax credits for the tax year

For more information, see subsections 53(1) to 53(5) of the Taxation Act, 2007 (Ontario).

Carrying forward minimum tax credits

The minimum tax credit carryforward at the beginning of the tax year is equal to the minimum tax and special additional tax paid in previous tax years less any minimum tax credit previously deducted or expired. Only special additional tax paid in a tax year ending after 2008 is included.

The minimum tax credits attributable to tax years ending after March 22, 2007, can be carried forward for 20 years.

For tax years ending after 2008, the carryforward of minimum tax credits attributable to tax years ending before March 23, 2007, is extended from 10 to 20 years if the credit did not otherwise expire before the beginning of the corporation's first tax year ending after 2008.

Claiming the credit

Complete Parts 4, 5, and 6 of Schedule 510, Ontario Corporate Minimum Tax, to calculate the corporate minimum tax credit carryforward and the credit deducted in the current tax year.

On line 418 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of the credit deducted in the current tax year.

Forms and publications

• Schedule 510, Ontario Corporate Minimum Tax
• Schedule 5, Tax Calculation Supplementary – Corporations

Government partners

• Ontario Ministry of Finance
• Ontario e-Laws