Tax Rates and Threshold Amounts

Tax Rates

Effective April 1, 2008, the Corporation Capital Tax Act is amended to phase out the existing corporation capital tax over the next three years by reducing the rates by one-third each year. The rate reductions will be pro-rated for taxation years that straddle April 1. The following table shows the scheduled rate reductions.

Corporation Capital Tax Rates

*Financial institutions with paid up capital under $1 billion or that have a head office in BC

Effective April 1, 2010, financial institutions that have net paid up capital equal to or greater than $1 billion will be subject to a minimum tax of 1% of BC paid up capital. The minimum tax is reduced by the total of British Columbia corporate income tax payable for that year, for the 7 preceding years and for the 3 subsequent years. The minimum tax will be pro-rated for taxation years that straddle April 1, 2010. See Financial Institutions Minimum Tax webpage for details.

Corporation Capital Tax is payable at a rate of:

	1% for financial corporations with net paid up capital less than or equal to $1 billion
	3% for financial corporations with net paid up capital in excess of $1 billion
	1% for financial corporations that, at the end of the applicable tax year, are based and have their head offices in British Columbia

Threshold Amounts

For taxation years ending after March 31, 2003 the Corporation Capital Tax (CCT) is levied on financial corporations with net paid up capital equal to or greater than $10 million. For the history of these amounts, see the Archive page.

A financial corporation must, for each tax year that the financial corporation has or had a permanent establishment in British Columbia, pay Corporation Capital Tax if the financial corporation has, at the end of the tax year, net paid up capital equal to or greater than the threshold amount.

If the financial corporation is one of two or more associated financial corporations, the amounts of net paid up capital of the associated financial corporations that are to be added together for the purpose of determining whether or not the financial corporation is above the threshold. The aggregate must be computed by using the tax year for each associated financial corporation that ends in the same calendar year as the tax year of the financial corporation for which the tax payable is being determined.