New Small Business Tax Deduction
- Closing date : May 17, 2024
Overview
This deduction eliminates the Nova Scotia corporate income tax for the first three taxation years of an eligible new small business after incorporation.
At a glance
Funding available
- Improve governance or administrative structure
- Varies by project
- Closing date : May 17, 2024
Eligible candidates
- All industries
- Nova Scotia
- For-profit business
- All revenue ranges
- 2 employees minimum
- Startups
Next Steps
Eligibility
Who is eligible?
Eligible applicants must be new small businesses in Nova Scotia that qualify for the federal small business deduction, maintain a permanent establishment in the province, and are not involved in specified professional practices, partnerships, or previously active businesses with the same ownership.Who is not eligible
This grant excludes certain companies and industries based on their status and main activities. The outlined restrictions help ensure that the tax deduction is provided to strategic small business sectors in Nova Scotia.
- Businesses that are a professional practice of an accountant, dentist, lawyer, medical doctor, veterinarian, or chiropractor.
- Corporations involved in partnerships or joint ventures with ineligible entities.
- Businesses that are beneficiaries of a trust where any beneficiary is ineligible.
- Companies that are essentially the same as previous active businesses with the same or related owners.
- Businesses carrying on the same, or substantially the same, business 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
This tax deduction is specifically available for businesses that are located in Nova Scotia, as dictated by the requirement of maintaining a permanent establishment in the province. The deduction aligns with localized economic strategies to support new business growth within the region.
- Companies located in Nova Scotia.
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.