New Small Business Tax Deduction
The New Small Business Tax Deduction eliminates provincial corporate income tax for new small businesses for the first 3 taxation years after incorporation.
Offered by Department of Finance and Treasury Board
Amount
no fixed amount
Quick eligibility check
Who can apply
You can apply if your business qualifies for the federal small business deduction for the applicable tax year and maintained a permanent establishment in Nova Scotia at any time during that year.
A new Nova Scotia business is eligible if the business meets the following criteria:
- has at least 2 employees (1 employee needs to be unrelated to any shareholder of the corporation)
- is not in a partnership or joint venture with an ineligible corporation
- is not a beneficiary of a trust where any beneficiary is ineligible
- is not a professional practice of an accountant, dentist, lawyer, medical doctor, veterinarian or chiropractor
- is not a business carrying on the same, or substantially the same, business activity that it carried on as a sole proprietorship, partnership or corporation
About the funding
The New Small Business Tax Deduction eliminates provincial corporate income tax for eligible new small businesses for the first 3 taxation years after incorporation. You can apply annually for up to 3 years.
Claimed through the Canada Revenue Agency on your corporate tax return.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| Innovation Equity Tax Credit | Tax Credit | Individual investors: 35% of an eligible investment (45% for approved corporations in the oceans technology and life sciences sectors), on a maximum annual eligible investment of $250,000 (maximum annual personal tax credit $87,500 at 35% and $112,500 at 45%) | Open |
