Closed
New Small Business Tax Deduction
Tax relief for eligible new Nova Scotia businesses
Last Update: May 25, 2026
Funding available
Varies by project
Timeline
- Closing date : May 17, 2024
Location
Nova Scotia, Canada
Overview
This deduction eliminates Nova Scotia provincial corporate income tax for eligible new small businesses during the first three taxation years after incorporation. It applies to qualifying corporations based in Nova Scotia and supports tax relief tied to corporate income, payroll, and establishment requirements.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Improve governance or administrative structure
Eligible Funding
- Varies by project
Timeline
- Closing date : May 17, 2024
Eligible candidates
Eligible Industries
- All industries
Location
- Nova Scotia
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- 2 employees minimum
Audience
- Startups
Next Steps
1
Determine your project
2
Validate your eligibility
Documents Needed
- Completed New Small Business Tax Deduction application form
- Corporate income tax return for the relevant taxation year
- Schedule 341
- List of shareholders and share percentages
- Signature of an authorized signing officer
Official resources
Application form
Eligibility
Who is eligible?
- New small businesses in Nova Scotia
- Qualifying Canadian-controlled private corporations incorporated in Nova Scotia
Who is not eligible
- Professional practices of accountants, dentists, lawyers, medical doctors, veterinarians, or chiropractors
- Businesses in a partnership or joint venture with an ineligible corporation
- Businesses that are beneficiaries of a trust with an ineligible beneficiary
- Businesses carrying on the same or substantially the same activity as a previous sole proprietorship, partnership, or corporation
Eligible expenses
There are no specific projects or activities mentioned as eligible for this grant within the provided context. The grant focuses on eliminating provincial corporate income tax for certain qualifying new small businesses in Nova Scotia.
Eligible geographic areas
- Nova Scotia
Selection criteria
The evaluation and selection of projects for this grant do not have specified criteria or point scores outlined in the provided context.
How to apply
1
File Corporate Income Tax Return
- File your corporate income tax return with the Canada Revenue Agency (CRA).
- Ensure that Schedule 341 is included with your filing.
2
Prepare Application Form
- Download the New Small Business Application form (pdf) from the official website.
- Complete the form with all necessary details including CRA Business Number, incorporation date, and shareholder information.
- Gather supporting documents: corporate income tax return for the relevant taxation year, including Schedule 341.
- Ensure that you have the signature of an authorized signing officer.
3
Calculate Employment and Payroll Data
- Compile total hours worked in the tax year by each employee unrelated to any shareholders.
- Calculate the percent of total wages and salaries paid to employees who are Nova Scotia residents.
4
Submit Application
- Email the completed application and supporting documents to the New Small Business Tax Deduction Administrator.
- Note: Paper applications will not be accepted.
5
Await Processing
- Wait approximately 5 weeks for the processing of your application.
- Be prepared to provide additional information if requested.
6
Adjust Corporate Income Tax Return
Upon receiving your Eligibility Certificate, adjust your corporate income tax return to claim the New Small Business Tax Deduction.
Processing and Agreement
- Applications are reviewed by the Nova Scotia Department of Finance and Treasury Board.
- Processing usually takes about 5 weeks.
- Additional information may be requested if needed.
- An Eligibility Certificate is issued before the deduction can be claimed.
Additional information
This grant provides a corporate tax holiday for the first three years for eligible new small businesses, under specific conditions.
- You can apply for the grant at the end of each of your corporation's first 3 tax years or up to 3 years after your corporation's year end for the specified tax years.
- Applications will be processed sequentially, meaning you can't apply for the 2nd or 3rd year without submitting the previous years' applications.
- It takes about 5 weeks to process your application, but it can take longer if more information is needed or if forms are filled in incorrectly.
- Key documents needed include CRA Business Number, incorporation date, list of shareholders with their share percentages, and corporate income tax return including Schedule 341.
- The grant application must be submitted via email; paper applications are not accepted.
Contacts
Frequently Asked Questions about the New Small Business Tax Deduction Program
What is the New Small Business Tax Deduction?
This deduction eliminates Nova Scotia provincial corporate income tax for eligible new small businesses during the first three taxation years after incorporation. It applies to qualifying corporations based in Nova Scotia and supports tax relief tied to corporate income, payroll, and establishment requirements.
Who is eligible for the New Small Business Tax Deduction program?
To be eligible for the New Small Business Tax Deduction program, you must:
Qualifies for the federal small business deduction.
Maintains a permanent establishment in Nova Scotia.
Has at least 2 employees.
Who can I contact for more information about the New Small Business Tax Deduction?
You can contact Government of Nova Scotia by email at Samantha.Thomson@novascotia.ca or by phone at 902-424-5388.
Where is the New Small Business Tax Deduction available?
The New Small Business Tax Deduction program is available the province of Nova Scotia.
Is the New Small Business Tax Deduction a grant, loan, or tax credit?
New Small Business Tax Deduction is a Tax Credits
Who are the financial supporters of the New Small Business Tax Deduction?
New Small Business Tax Deduction is funded by Government of Nova Scotia, Finance and Treasury Board (NB), Finance and Treasury Board (NS)