A CCPC is a special type of private corporation that is also a Canadian corporation. In order to qualify as a CCPC it must not be controlled, directly or indirectly in any manner whatsoever, by public corporations, non-residents or a combination of the two.
In many cases, it is advantageous for a corporation and its shareholders that the corporation qualify as a CCPC. Some of these advantages, which are primarily designed to assist small businesses, include:
- access to the small business deduction
- an additional month to pay the balance of taxes payable under Parts I, I.3, VI and VI.1 for the year
- enhanced investment tax credits, which may be fully refundable, for their qualified expenditures on scientific research and experimental development
- shareholder entitlement to the capital gains exemption on the disposition of qualified small business corporation shares
- deferral of an employee’s taxable benefit arising from the exercise of stock options granted by a CCPC
To see if your company is qualified as a CCPC, or to take full advantage as a CCPC, please Contact our office.