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Glossary -> Canadian controlled private corporationCanadian Controlled Private Corporation (CCPC)A CCPC is a private corporation which is controlled by Canadian residents. A corporation will not qualify as a CCPC if it is controlled directly or indirectly by a public corporation or non-residents, or a combination of the two. A CCPC is eligible for the small business deduction, which provides a reduction in corporate income tax on active business income. When the shares of a qualifying CCPC are sold, the shareholder(s) may avoid capital gains tax by utilizing all or part of the $750,000 lifetime capital gains deduction. This exemption was increased from $500,000 to $750,000 by the 2007 Federal budget.
Revised: March 06, 2012 |