Tax Rates and Threshold Amounts

Tax Rates

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, at the end of the applicable tax year, are based and have their head office in BC.

Threshold Amounts

For taxation years ending after March 31, 2003 the Corporation Capital Tax (CCT) is levied on financial corporations with net paid up capital equal to or greater than $10 million. For the history of these amounts, see the Archive page.

A financial corporation must, for each tax year that the financial corporation has or had a permanent establishment in British Columbia, pay Corporation Capital Tax if the financial corporation has, at the end of the tax year, net paid up capital equal to or greater than the threshold amount.

If the financial corporation is one of two or more associated financial corporations, the amounts of net paid up capital of the associated financial corporations are to be added together for the purpose of determining whether or not the financial corporation is above the threshold. The aggregate must be computed by using the tax year for each associated financial corporation that ends in the same calendar year as the tax year of the financial corporation for which the tax payable is being determined.