# How to calculate Part IX.1 tax

Every partnership that is a Specified investment flow-through (SIFT) partnership for a tax year is liable to a tax under Part IX.1 equal to the amount determined by the following formula:

A × (B + C)

where:

A represents the taxable non-portfolio earnings of the SIFT partnership for the tax year

B represents the net corporate income tax rate in respect of the SIFT partnership for the tax year

C represents the provincial SIFT tax rate of the SIFT partnership for the tax year:

• Where the SIFT partnership has no permanent establishment in a province or territory, the rate is 10% (see Example 1)
• Where the SIFT partnership has a permanent establishment in a province or territory and has no permanent establishment outside that province or territory, the rate is:
• for Québec, 0%
• for each other province or territory, including offshore areas, the highest percentage rate of tax imposed under the laws of the province or territory on the taxable income of a public corporation earned in the province or territory for the tax year. Visit the Corporation tax rates website to find the tax rate applicable to the end date of your SIFT tax year as the rates may change during a calendar year (see Examples)
• Where the SIFT partnership has a permanent establishment in a province or territory and has a permanent establishment outside that province or territory, the rate is determined by the following formula:

A + B

where:

A is the total of the following calculation done for each province or territory where the SIFT partnership has a permanent establishment

(Taxable non-portfolio earnings from the province or territory ÷ Partnership taxable non-portfolio earnings) × General corporate income tax rate in the province or territory

and

B is the proportion of the SIFT partnership’s allocated earnings not attributed to a province or territory where it has a permanent establishment calculated with the nested formula

[1 − (Total taxable non-portfolio earnings from the province or territory where the SIFT has a permanent establishment ÷ Partnership taxable non-portfolio earnings)] × 0.1

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