Tax Rates

On February 19, 2008 the government introduced legislation to reduce the corporate income tax rates.

Corporation income tax rates are expressed as a percentage of taxable income earned in the province.

British Columbia has two rates of income tax – a higher rate and a lower rate.

The income eligible for the lower rate is determined using the British Columbia business limit. The B.C. business limit is:

• $400,000 effective January 1, 2005
• $300,000 from April 1, 2002 to December 31, 2004

The higher rate applies to all other taxable income.

When the rate or the business limit changes during the tax year, you have to
base your calculation on the number of days in the year that each rate or limit is in effect.

The Small Business Rate applies for Canadian-controlled private corporations with active business income.