Effective April 1, 2010, Corporation Capital Tax is phased out.

Corporation Capital Tax

The Corporation Capital Tax (CCT) is a tax levied on financial corporations with a permanent establishment in British Columbia and net paid up capital in excess of a minimum threshold amount. Net paid up capital for a financial corporation is generally made up of the total capital stock, contributed surplus and retained earnings of the corporation, minus specific deductions.

Effective April 1, 2008, the Corporation Capital Tax Act was amended to phase out the existing corporation capital tax. Over three years the rates will be reduced by one-third each year until it is eliminated on April 1, 2010. The rate reductions will be pro-rated for taxation years that straddle April 1. The following table shows the scheduled rate reductions.

Corporation Capital Tax Rates

*Financial corporations with paid up capital under $1 billion or that have a head office in BC

For tax years prior to September 1, 2002, the Corporation Capital Tax also applies to general corporations and investment dealers. Please see our Archives for more information.