Small Business Deduction
Also written as sbd, small business deduction.
Definition
Reduced federal corporate tax rate on the first $500,000 of active business income earned by a CCPC. Combined with provincial rates of roughly 9-13%.
Long reference
Handbook
Small Business Deduction
Citations, procedures, and worked examples for small business deduction.
Related terms
CCPC
Canadian-Controlled Private Corporation. A private corporation resident in Canada not controlled by non-residents or public companies. Unlocks the Small Business Deduction.
T2 return
The federal corporate income tax return. Every incorporated Canadian corporation files annually, even when inactive.