Ontario Corporate Minimum Tax Credit

• The applicant must be a corporation with total assets of $50 million or more.
• The applicant must have total revenue of $100 million or more.

Who is eligible?

• Ontario corporations with total assets of $50 million or more and total revenue of $100 million or more (excluding specified exempt corporate types)

Who is not eligible

• Corporations exempt from income tax under section 149 of the federal Income Tax Act.
• Mortgage investment corporations.
• Deposit insurance corporations under subsection 137.1(5) of the federal Income Tax Act.
• Congregations or business agencies to which section 143 of the federal Income Tax Act applies.
• Investment corporations and mutual fund corporations.

Eligible geographic areas

• Ontario

• Step 1: Complete the Required SchedulesFill out Schedule 510, Ontario Corporate Minimum Tax, as part of your T2 Corporation Income Tax Return if applicable.
• If the corporation is associated with others, complete Schedule 511, Ontario Corporate Minimum Tax – Total Assets and Revenue for Associated Corporations.
• If subject to special additional tax on life insurance corporations, complete Schedule 512, Ontario Special Additional Tax on Life Insurance Corporations (SAT).
• Step 2: Calculate and Report the TaxDetermine the adjusted net income following Canadian GAAP or IFRS, including all required adjustments as detailed in Part 2 of Schedule 510.
• Deduct eligible accounting gains, deferred gains, and any other permitted deductions as allowed under the regulations.
• Step 3: Complete Tax Calculation SupplementaryEnter your calculated corporate minimum tax amount on line 278 of Schedule 5, Tax Calculation Supplementary – Corporations.
• Step 4: Submit Your Corporate Income Tax ReturnAttach all completed schedules (510, 511 if applicable, 512 if applicable, and Schedule 5) to your T2 Corporation Income Tax Return.
• File the complete package with the Canada Revenue Agency (CRA) as part of your regular corporate tax filing.

• The corporate minimum tax rate is 2.7%.
• Adjusted net income is based on Canadian accounting standards, with specific deductions and adjustments.
• Accounting gains from certain reorganizations and property transfers may be deducted when calculating adjusted net income, subject to proper election procedures.
• For specialized cases, consult Ontario Regulation 37/09 regarding the exclusion of certain unrealized gains and losses.