Nova Scotia Department of Finance
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New Small Business Tax Deduction Certificate Information Sheet


Tax Deduction

The Nova Scotia Small Business Tax Deduction effectively eliminates the Nova Scotia Corporation Income Tax for the first two taxation years of a new small business incorporated after April 18, 1986 and three years for a new small business incorporated after April 24, 1992. The Corporation must apply, each year, to the Nova Scotia Minister of Finance for a Nova Scotia Tax Deduction Eligibility Certificate.

Eligible Corporations

All new businesses incorporated in Nova Scotia after April 18, 1986 that are:

  • not associated with another corporation(s)
  • not in a partnership or a joint venture with an ineligible corporation(s)
  • not a beneficiary of a trust where any beneficiary is ineligible
  • not a previous active business with essentially the same owner(s) or related owner(s)
  • not a professional practice of an accountant, dentist, lawyer, medical doctor, veterinarian or chiropractor
  • not a business carrying on the same, or substantially the same, business activity as was carried on as a sole proprietorship, partnership or corporation
  • complete requirements for eligibility can by accessed at Sec 42 Income Tax Act (Nova Scotia) and the related regulations.
New Small Business Regulations

Filing of Application

The application form should be filed at the end of each of the first two taxation years of the corporation.  If the corporation date of the applicant company was April 25, 1992, or later, the corporation will be eligible to apply for the Nova Scotia Small Business Tax Deduction for three years. We will not issue a Certificate of Eligibility to an eligible company until this office has received an Application Form and the Canada Revenue Agency Form 341 attached. We require a separate application form for each taxation year. Please note that due to confidentiality, we require a signed Letter of Authorization from the applicant company before we may discuss any matter with anyone other than the applicant company.

Download the New Small Business Application in one of the following two formats:

  Microsoft Word    or    PDF Format