Business -> Taxable capital
employed in Canada
Taxable Capital Employed in Canada
Taxable capital employed in Canada is an amount used in the calculation of
the Capital Tax on large corporations. The Federal capital tax is now only
paid by financial institutions and life insurance companies.
A corporation is considered a large corporation if the total taxable capital
employed in Canada at the end of the tax year for it and its related
corporations is greater than $10 million.
Taxable capital employed in Canada is also used to determine if a Canadian
Controlled Private Corporation (CCPC) qualifies for the small business deduction
(SBD). CCPCs with taxable capital employed in Canada of $15 million or
more do not qualify for the SBD.
A corporation's taxable capital is, in general, the total of its
shareholder's equity, surpluses and reserves, and loans and advances to the
corporation, less certain types of investments in other corporations.
Department of Finance information