Political Contribution Tax Credit for Corporations

By mmuise
Description:

The Political Contribution Tax Credit for Corporations is a non-refundable tax credit available to corporations who participated in the provincial political process by making a financial contribution to an Ontario candidate, constituency association, or political party.


Comments on Funding:

The amount of this non-refundable tax credit generally depends on the corporation's total eligible contributions and its Ontario income tax payable for the tax year.
The maximum tax credit that a corporation can claim in a tax year is $2,294. This is based on the maximum allowable annual contributions of $19,950.

Deadline: Rolling deadline
Eligibility:

The applicant must:

  • be a corporation;
  • make eligible contributions;
  • have a permanent establishment in Ontario;
  • not be exempt from corporate income tax.

    An eligible contribution is a contribution made by a corporation during a tax year and before January 1, 2017, to an:
  • Ontario registered candidate;
  • Ontario registered constituency association;
  • Ontario registered political party.
Application Steps:

The applicants must:

1. claim the tax credit on Schedule 525 and file it with their T2 corporation income tax return;

2. file the return as a completed package (incomplete returns generate delays in processing).

Documentation Needed:

Applicants must submit:
1. the Schedule 525;
2. the T2 corporation income tax return.

Other Things to Note:

Updated: June 02, 2023

About the author
mmuise