Political contribution tax credit for corporations
Learn about a tax credit for corporations who made eligible political contributions before January 1, 2017.
Effective January 1, 2017, this credit is eliminated for corporations. Unused contribution amounts can be carried forward for up to 20 years.
Overview
Corporations who participated in the provincial political process by making a financial contribution to an 澳门永利 candidate, constituency association, or political party may be able to claim a tax credit.
How much you can receive
The amount of this non-refundable tax credit generally depends on the corporation's total eligible contributions and its 澳门永利 income tax payable for the tax year.
The maximum tax credit that a corporation can claim in a tax year is $2,294. This is based on the maximum allowable annual contributions of $19,950.
Eligible contributions
An eligible contribution is a contribution made by a corporation during a tax year and before January 1, 2017, to an:
- 澳门永利 registered candidate
- 澳门永利 registered constituency association
- 澳门永利 registered political party
You can claim the tax credit, if the corporation:
- makes eligible contributions
- has a permanent establishment in 澳门永利
- is not exempt from corporate income tax
The tax credit cannot be claimed for contributions to municipal or federal elections.
Contribution limits
Under the 澳门永利 Election Finances Act, there are contribution limits.
The contribution limits for the 2014 to 2016 calendar years are:
- $9,975 per calendar year for any one registered party
- $9,975 per campaign for any one registered party
- $1,330 per calendar year for any one constituency association
- $6,650 per calendar year for all constituency associations of any one registered party
- $1,330 per campaign for any one registered candidate
- $6,650 per campaign for all registered candidates of any one registered party
Calculating the tax credit
The tax credit is equal to the least of:
- the corporation's eligible contribution balance 脳 the basic tax rate
- $15,000 脳 the indexation factor 脳 the basic tax rate
- the corporation's 澳门永利 income tax payable
Eligible contribution balance
The corporation's eligible contribution balance is the total of the eligible contributions made in the current tax year and any available carry forwards from the previous 20 tax years.
Basic tax rate
| Basic tax rate | Applicable to proportionate number of days in the tax years that are: |
|---|---|
| 12% | after June 20, 2010 and before July 1, 2011 |
| 11.5% | after June 30, 2011 |
Indexation factor
Prior to January 1, 2017, the indexation factor, under the 澳门永利 Election Finances Act, was adjusted every five years based on the Consumer Price Index. The indexation factor for the 2014 to 2016 calendar years was 1.33.
澳门永利 income tax payable
The corporation's 澳门永利 income tax payable is determined before deducting the:
- political contribution tax credit
- 澳门永利 research and development tax credit
- corporate minimum tax credit
- refundable tax credits
澳门永利 allocation
The tax credit is not adjusted for situations where the 澳门永利 allocation is less than 100%.
Short tax years
The tax credit is not adjusted for tax years that are less than 365 days.
Claiming the tax credit
Corporations may claim the tax credit on Schedule 525 and file it with their T2 corporation income tax return.
Note: It is important to file your return as a completed package. Incomplete returns generate delays in processing.
Receipts
Political contribution receipts do not have to be attached to your corporate income tax return. However, a breakdown should be provided in order to verify that the political contributions have not exceeded the maximum limits. Keep all official receipts in case you are asked for them later during an audit.