Division C Deductions for Corporations
Division C Deductions for Corporations
Determining Whether a Corporation is Resident in Canada
- Dividends from Canadian Resident Corporations
- Donations to Registered Charities (maximum of 75% of Division B Income)
- Net Capital Loss Carryovers (3 years back; unlimited years forward)
- Non Capital Loss Carryovers (3 years back; 20 years forward)
Dividends from Canadian Resident Corporations
- Dividends received from Canadian Resident Corporations are tax free
- This division C ensures that corporations are not double taxed
Dividends from Canadian Resident Corporations
- Donations are claimed as a division C deduction for corporations (rather than a credit)
- The maximum donations that can be deducted is limited to 75% of division B income
- Unused Donations can be carried forward for 5 years