Small business deduction
If you operate a Canadian-controlled private corporation, you may be eligible for an annual tax credit. This reduces the amount of tax that your business might otherwise have to pay.
The amount of the credit is calculated when you complete your corporation's T2 income tax return. If you are not associated with any other corporations, the allowable business limit you can claim is $500,000. Other conditions apply.
For more information, see chapter 4 of the Corporation Income Tax Guide.
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