Federal Corporate Tax Rates Decreasing in January

For corporations other than Canadian controlled private corporations which qualify for the small business deduction, the net tax rate will decrease from 18% effective January 1, 2010 to 16.5% effective January 1, 2011 and 15% effective January 1, 2012.

In other good tax news for business, computer hardware acquired before February 2011 will qualify for a 100% tax write off with no half year rule (Class 52) if the asset will be situated in Canada, not used for any other purpose before acquisition and is for use in a business carried on in Canada.

ADDITIONAL EDUCATIONAL RESOURCE: KB Introduction to Corporate Tax Preperation and EverGreen Challenge 2010