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Nova Scotia
Corporate Income & Tax Credits

Nova Scotia corporate income tax rates apply to companies with business activities in Nova Scotia. The provincial corporate income tax is calculated on taxable income amount. The federal government defines the calculation of taxable income including net income, capital cost allowance and various tax deductions. Both federal and provincial corporate income taxes are collected through the annual tax return to the Canada Revenue Agency (CRA).

There are two corporate income tax rates in Nova Scotia:

The lower corporate income tax rate is 3.0 per cent (as of the 2014 tax year). This rate applies to taxable income earned in the province of Canadian-controlled private corporation up to the Nova Scotia business limit of $500,000. This rate is also known as the Small Business Rate and applies to all Canadian-controlled private corporation with limited taxable capital.

The higher rate of income tax is 16 percent. This rate applies to taxable income earned in Nova Scotia that does not qualify for the lower rate.

Tax Credits

Companies may be eligible for various provincial tax credits that can reduce their income tax payable:

– Innovation Equity Tax Credit (IETC)
– Venture Capital Tax Credit (VCTC)
– Capital Investment Tax Credit (CITC)
– Film Tax Credit
– Digital Media Tax Credit
– Digital Animation Tax Credit
– Research and Development Tax Credit
– New Small Business Tax Deduction
– Donations and Gifts
– Foodbank Tax Credit for Farmers Guidelines
– Credits issued under Film, Digital Media, Digital Animation, and Capital Investment Tax Credits