Business Limits

Effective January 1, 2010, the small business limit is $500,000.

Please see the Rates page for the Small Business Rate.

A Canadian-controlled private corporation (CCPC) is eligible for the Small Business Rate of corporation income tax on the least of its:

• active business income for the year
• taxable income for the year (subject to certain adjustments)
• business limit for the year

Active business income includes income from a partnership of which the corporation is a member. The BC business limit applies to corporate partnerships.

When a corporation is associated with one or more other CCPCs, the business limit must be allocated among the CCPCs in the same proportion as the federal business limit.

Corporations with tax years that start before January 1, 2010 and end after December 31, 2009 will be required to prorate the BC business limit based on the number of days in the tax year before and after January 1, 2010.