MacNeill Edmundson Professional Corporation Small Business Services: Related Articles

Small Business Services: Related Articles

Corporate Tax Rates from 2003 to 2005

The following is a summary of the corporate tax rates, brackets in effect for the year 2003 and subsequent years to 2005.

Tax Rates 2003:

Income Description and Threshold Amounts (Ontario)	Federal Rate	Ontario Rate	Combined Rate
CCPC - first $225,000	13.12%	5.50%	18.62%
CCPC - $225,000 to $300,000 (320,000) active business income (not M & P ) (*)	22.12%	5.50%	27.62%
M & P income	22.12%	12.50%	34.62%
Non - CCPC's CCPC's on income over $300,000 (320,000)	24.12%	12.50%	36.62%

Tax Rates 2004:

Income Description and Threshold Amounts (Ontario)	Federal Rate	Ontario Rate	Combined Rate
CCPC - first $250,000	13.12%	5.00%	18.12%
CCPC - $250,000 to $300,000 (360,000) active business income (not M & P ) (*)	22.12%	5.00%	27.12%
M & P income	22.12%	11.00%	33.12%
Non - CCPC's CCPC's on income over $300,000 (360,000)	22.12%	11.00%	33.12%

Tax Rates 2005:

Income Description and Threshold Amounts (Ontario)	Federal Rate	Ontario Rate	Combined Rate
CCPC - first $275,000	13.12%	4.00%	17.12%
CCPC - $275,000 to $300,000 (400,000) active business income (not M & P ) (*)	22.12%	4.00%	26.12%
M & P income	22.12%	9.00%	31.12%
Non - CCPC's CCPC's on income over $300,000 (400,000)	22.12%	9.50%	33.62%

* The Federal threshold is up to $300,000. The Ontario threshold is being phased in over a number of years at $40,000 increments (2003 - $320,000, 2004 - $360,000 and 2005 - $400,000).

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