What is the provincial corporate income tax rate?
General Rate Applicable Dates 14.00% effective January 1, 2001 12.50% effective October 1, 2001 14.00% effective January 1, 2004 For taxation years straddling these dates, the income tax rate is prorated for the number of days in the taxation year for the particular rate over the number of days in the taxation year. The Incentive Deduction for Small Business Corporations (IDSBC) reduces the Ontario corporate income tax rate to arrive at an effective tax rate for small Canadian-controlled private corporations. Effective Small Business Rate Applicable Dates 6.50% effective January 1, 2001 6.00% effective October 1, 2001 5.50% effective January 1, 2003 and subsequent years For taxation years straddling these dates, the effective small business rate is prorated. The benefit of the IDSBC is gradually reduced by a surtax where taxable income is greater than $400,000. Effective January 1, 2004, the surtax will completely eliminate the benefit of the IDSBC where the taxable income is $1,128,51
