Nova Scotia corporate tax reduction for new small businesses

This tax reduction applies to the first three tax years of qualifying Canadian-controlled private corporations incorporated in Nova Scotia.

This tax reduction also applies to a corporation incorporated outside the province, but inside of Canada, if it pays at least 25% of its wages to employees who are resident in the province and its head office is located in the province.

If the qualifying corporation is eligible for a federal small business deduction for the year, it can claim this tax reduction to reduce Nova Scotia income tax otherwise payable.

Claiming the tax reduction

Schedule 341, Nova Scotia Corporate Tax Reduction for New Small Businesses, is a worksheet to calculate the credit and does not have to be filed with your return. See the schedule for more details.

On line 834 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the certificate number, and on line 556, enter the amount of the reduction you are claiming.

Supporting documents – You do not have to file the certificate of eligibility that the province issues. However, keep it in case we ask for it later.

Forms and publications

• Schedule 341, Nova Scotia Corporate Tax Reduction for New Small Businesses
• Schedule 5, Tax Calculation Supplementary – Corporations

Government partners

• Nova Scotia (provincial site)

Date modified:

2016-03-01