Corporation Capital Tax

Corporation Capital Tax is payable by corporations with a permanent establishment in British Columbia and "net paid up capital" in excess of the threshold amount.

For general corporations and investment dealers, the tax is payable at a rate of:

• 0% for taxation period after August 31, 2002*
• 0.15% for taxation period after August 31, 2001 and before September 1, 2002
• 0.3% for taxation period prior to September 1, 2001

For financial corporations (banks, trust companies and credit unions), the tax is payable at a rate of:

• 1% for financial corporations with net paid up capital equal to or less than $1 billion;
• 3% for financial corporations with net paid up capital in excess of $1 billion.

*The Corporation Capital Tax Act will no longer apply to taxation years commencing on or after September 1, 2002 for general corporations and investment dealers. However, it should be noted that regular compliance activities on those corporations will continue over the next few years. Please refer to Information Bulletin CCT-013 for more information on amendments to the Corporation Capital Tax Act. The tax rates for financial corporations remain unchanged.