Yukon Manufacturing and Processing Profits Tax Credit
YT, Canada
Tax credit for Yukon manufacturing and processing
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateJuly 01, 1999
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Manufacturing
- Professional, scientific and technical services
grant_single|grantors
- Government of Yukon
- Department of Finance (YK)
grant_single|status
grant_card_status|open
grant_single_labels|preview
Large corporations engaged in manufacturing and processing may claim up to 9.5% on profits earned in Yukon. Small corporations may claim up to 0.5%.
grant_single_labels|projects
This grant program is applicable to specific geographical regions as designated by the administrative bodies. Eligibility is primarily confined to entities incorporated within these specified territories.
- Organizations must maintain a permanent establishment in the Yukon.
grant_single|admissibleProjectsExample
$25,000
Developing a new line of eco-friendly packaging products
$20,000
Implementing an energy-saving initiative in the manufacturing process
$15,000
Creating a community education program on sustainable manufacturing practices
$25,000
Upgrading manufacturing equipment for higher efficiency and reduced waste
$25,000
Automating a portion of the assembly line to increase production efficiency
$20,000
Launching a recycling initiative to repurpose manufacturing by-products
grant_single_labels|admissibility
Eligible Yukon organizations must meet specific criteria to apply for the Business Investment Tax Credit.
- Be an incorporated, private corporation.
- Maintain permanent establishment in the Yukon.
- Have its head office located in the Yukon.
- Pay at least 25% of its salaries and wages to Yukon residents.
- Not exceed $100 million in assets.
grant_eligibility_criteria|who_can_apply
Individuals and corporations in Yukon can apply for the various tax credits and benefits outlined. Specific eligibility criteria apply for different credits: Yukon residents can access the Yukon Child Benefit and First Nations Income Tax Credit if residing on settlement land of designated First Nations. For the Business Investment Tax Credit, Yukon residents aged 19 and older can invest in eligible Yukon organizations. Corporations, both large and small, involved in manufacturing and processing in Yukon can apply for related tax credits. Political contributions tax credit is available for contributions to recognized territorial parties or candidates. The research and development tax credit is open to Yukon residents and corporations conducting eligible research in the territory. For a foreign tax credit, individuals or corporations who've paid foreign income tax and are now paying Yukon taxes can apply. Each program or credit has specific criteria that must be met.
grant_eligibility_criteria|who_cannot_apply
Some types of companies may not be eligible for the grant. For example, companies that do not meet the residency requirements or asset limits specified in the eligibility criteria may not qualify.
- Companies not meeting the residency requirements
- Companies exceeding the specified asset limits
grant_eligibility_criteria|eligible_expenses
This grant outlines several tax credit initiatives aimed at supporting individuals and corporations in the Yukon. The eligible activities focus on investments, research and development, manufacturing, and political contributions.
- Investing in eligible Yukon organizations to claim the Business Investment Tax Credit.
- Claiming the Manufacturing and Processing Profits Tax Credit for larger corporations in manufacturing and processing sectors.
- Engaging in scientific research and experimental development to utilize the Research and Development Tax Credit.
- Contributing to recognized territorial political parties or candidates to claim the Political Contributions Tax Credit.
- Applying for the Foreign Tax Credit when foreign income or profits tax has been paid to avoid double taxation.
grant_eligibility_criteria|zone
The grant covers specific eligible expenses for research and development projects conducted in the Yukon.
- Total eligible expenses for scientific research and experimental development.
- Additional eligible expenses related to Yukon College.
grant_single_labels|criteria
There are evaluation and selection criteria for this grant.
- Investors must be 19 years of age or older and Yukon residents.
- Eligible Yukon organizations must meet specific criteria, including being an incorporated private corporation with a head office located in the Yukon.
- The maximum claim for the Business Investment Tax Credit is $25,000 per taxation year.
- Unused amounts can be carried back 3 years or forward 7 years.
- Eligible organizations can issue shares to investors in exchange for a 25% tax credit on the amount invested.
grant_single_labels|register
Here are the steps to submit an application for the Yukon income tax benefits and credits:
- Step 1: Gather Required Documentation
- Ensure you have all necessary personal or corporate tax documents.
- Verify eligibility by reviewing specific program requirements.
- Step 2: Access CRA Resources
- Visit the CRA website to download necessary forms and publications related to Yukon income tax measures.
- Contact CRA for guidance if needed by calling 1-866-426-1527 (within Yukon's 867 area code).
- Step 3: Complete Relevant Application Forms
- Complete all required sections of the applicable tax credit forms.
- Use forms such as the General Income Tax Package (T1) or Corporation Income Tax Return (T2) as applicable.
- Step 4: Submit Application
- Submit the completed tax return or credit form online through the CRA portal or via mail to the designated CRA address.
- Step 5: Confirmation and Follow-Up
- Receive confirmation from the CRA upon successful submission.
- Retain all records and confirmations for future reference.
grant_single_labels|otherInfo
Here are additional details regarding Yukon income tax measures:
- The Yukon child benefit is added to the Canada child benefit, making it a single monthly payment.
- The Yukon Business Investment Tax Credit came into effect on July 1, 1999.
- For the Research and Development Tax Credit, the credit is refundable if it exceeds your payable income tax.
- You need to claim the Research and Development Tax Credit within 12 months of the tax-return filing due date.
- Personal income tax rates have specific thresholds and brackets, affecting how much tax Yukoners pay based on their income level.
grant_single_labels|contact
fininfo@yukon.ca
1-866-426-1527
Apply to this program
Understanding Yukon Income Tax Measures and Benefits
This summary outlines specific income tax measures and benefits available to residents and businesses in Yukon, Canada. The information includes personal and corporate tax credits, benefits for families and First Nations residents, and updated taxation rates for 2024.
Detailed Overview of Yukon Tax Credits, Benefits, and Rates
Yukon offers a variety of income tax measures designed to support its residents and stimulate economic growth within the territory. The Canada Revenue Agency (CRA) administers both personal and corporate income taxes for Yukon, providing standardized documents and resources online. Among the personal income tax benefits, the Yukon Child Benefit enhances the national Canada Child Benefit by providing additional financial support to families with dependent children. As of July 1, 2024, the Yukon Child Benefit amounts to $918 annually per dependent child, with a structured reduction mechanism for families with an adjusted net income above $35,000.
For investors and businesses, the Yukon Business Investment Tax Credit offers a 25% tax credit for eligible investments in local corporations, with a maximum claim of $25,000 for the taxation year. Notably, this credit supports Yukon's economic development by rewarding residents who invest within the territory.
First Nations residents benefit from a targeted tax credit to ensure equitable tax treatment under a tax-sharing arrangement, acknowledging the unique status and agreements of self-governing territories. The First Nations Income Tax Credit effectively minimizes territorial tax liability for eligible individuals living on Settlement Lands.
The corporate sector can take advantage of the Manufacturing and Processing Profits Tax Credit, offering significant reductions on taxes for corporations engaged in such activities within Yukon. Large corporations benefit extensively with tax credits up to 9.5% on qualifying profits, though a 0% tax rate now applies to small businesses from January 1, 2021, rendering this credit inapplicable to smaller entities.
Additionally, individuals and corporations contributing to political campaigns can claim a Political Contributions Tax Credit. This encourages civic engagement and supports political diversity within the territory by providing substantial tax relief for contributions to territorial political parties or candidates.
Research and innovative activities gain momentum through a Research and Development Tax Credit, encouraging scientific exploration and development, particularly when projects are conducted in partnership with Yukon College. This credit amounts to 15% of eligible expenses, with additional incentives for local collaborative efforts.
Yukon’s updated tax rates for 2024 reflect a comprehensive approach to income tax. The personal tax system maintains a progressive structure via five distinct brackets, ranging from 6.4% to 15.0%, based on income thresholds. Meanwhile, corporate tax policies remain competitive with a 12% rate for general corporations and a favorable 0% rate for small businesses, clearly incentivizing small-scale entrepreneurship and local commercial activity.
These measures collectively create an encouraging environment for Yukoners to innovate, contribute to local economies, and balance familial responsibilities, with steadfast commitment from the Yukon government to promote equitable and sustainable prosperity across the territory.
