Ontario – Provincial corporation tax

Basic rate

The Ontario basic income tax rate is 11.5%.

Lower rate

The Ontario small business deduction reduces Ontario basic income tax, resulting in a lower tax rate of 4.5%.

Reporting the tax

The T2 return includes the following Ontario corporation taxes:

• Basic income tax
• Corporate minimum tax
• Special additional tax re life insurance
• Additional tax re Crown royalties

You can use Schedule 500, Ontario Corporation Tax Calculation, to calculate your Ontario basic income tax. Schedule 500 is a worksheet and does not have to be filed with your return.

On line 270 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of basic income tax calculated.

Transitional measures

The Ontario transitional tax debits and credits provide a transition from the Corporations Tax Act (Ontario) for corporations with different income tax attributes for federal and Ontario purposes.

• Transitional tax debits/credits

Claiming the credits

Ontario offers different tax credits. Details of each credit can be found in the following pages and their associated schedules:

• Apprenticeship training tax credit
• Business-research institute tax credit
• Capital gains refund
• Community food program donation tax credit for farmers
• Co-operative education tax credit
• Corporate minimum tax credit
• Credit union tax reduction
• Foreign tax credit
• Innovation tax credit
• Political contributions tax credit
• Qualifying environmental trust tax credit
• Refundable media tax credits
  • Book publishing tax credit
  • Computer animation and special effects tax credit
  • Interactive digital media tax credit
  • Film and television tax credit
  • Production services tax credit
  • Sound recording tax credit
• Research and development tax credit
• Resource tax credit
• Tax credit for manufacturing and processing

Other requirements

• Ontario specialty types
• Ministry of Government and Consumer Services (MGCS) annual return

Forms and publications

• Schedule 5, Tax Calculation Supplementary – Corporations
• Schedule 500, Ontario Corporation Tax Calculation

Government partners

• Ontario Ministry of Finance
• Ontario e-Laws

Date modified:

2017-04-20