Division C Deductions for Corporations

Division C Deductions for Corporations

Determining Whether a Corporation is Resident in Canada
  1. Dividends from Canadian Resident Corporations
  2. Donations to Registered Charities (maximum of 75% of Division B Income)
  3. Net Capital Loss Carryovers (3 years back; unlimited years forward)
  4. 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

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