Finance - Small Business Tax Credit

Small Business Tax Credit

The general corporate income tax rate is 14%. However, small businesses are taxed at a rate of 5%. For the taxation years in 2002 and prior, small businesses were eligible for the 5% tax rate on the first $200,000 of active business income. However, beginning in 2003 the small business threshold is increased as follows:

Year	Small Business Deduction
2003	$225,000
2004	$250,000
2005	$300,000

This credit is administered on behalf of the province by Canada Customs and Revenue Agency.

This credit is provided under Section 40(3) of the Income Tax Act.

Income Tax Act
Canada Customs and Revenue Agency

For additional information about this credit please contact :

Department of Finance
Taxation and Fiscal Policy Branch
P.O. Box 8700
St. John's, Newfoundland
A1B 4J6
Telephone: (709) 729-3166
Fax: (709) 729-2070
E mail: Taxpolicy@mail.gov.nl.ca

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