Yukon – Territorial corporation tax

What's new for corporations

Lower tax

The lower rate of Yukon income tax is 0%, effective January 1, 2021. It was previously 2%.

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.

Income eligible for the lower rate is determined using the Yukon business limit of $500,000.

Higher tax

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

For more information, see Dual tax rates.

Reporting the tax

You can use Schedule 443, Yukon Corporation Tax Calculation, to help you calculate the Yukon tax before the application of credits. You do not have to file it with your return. See the schedule for more details.

On line 245 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of tax calculated.

Claiming the credits

• Carbon rebate
• Foreign tax credit
• Manufacturing and processing profits tax credit
• Political contribution tax credit
• Research and development tax credit

Forms and publications

• Schedule 443, Yukon Corporation Tax Calculation
• Schedule 5, Tax Calculation Supplementary – Corporations

Government partners

• Yukon (territorial site)