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SNL2000

CHAPTER I-1.1

INCOME TAX ACT, 2000

Amended:

2001 c4; 2001 cN-3.1 s2; 2002 c5; 2003 c4; 2003 c6; 2004 c16;

2004 c19 ss1-3; 2004 c47 s20; 2005 c10; 2005 c44; 2006 c40 s21; 2006 c47; 2007 c12; 2007 c21; 2008 c20; 2008 c33 s1; 2008 c47 s7; 2009 c21; 2009 c30 s6; 2010 c3; 2010 c7; 2010 c31 s10; 2010 c37; 2011 c24; 2012 c5; 2013 c16 s25; 2014 c12; 2014 c18; 2015 c8;

2015 c14; 2016 c14; 2016 c15; 2016 c16; 2016 c17; 2016 c18;

2016 c43; 2018 c15; 2019 cS-29.02 s28; 2019 c26; 2021 c11;

2021 c12; 2022 c10; 2023 c12; 2023 cT-6.1 s323; 2024 c6; 2026 c14; 2026 c15

CHAPTER I-1.1

AN ACT RESPECTING INCOME TAX

(Assented to December 14, 2000 )

Analysis

Short title

PART I

INTERPRETATION

Interpretation

Application of federal provisions and amendment

Exemption from tax

PART II

INCOME TAX

Definitions

Liability for tax

6.1

Indexation

Amount of tax payable

7.1

Temporary deficit reduction levy

CPP/QPP disability benefits and other lump sum payments for previous years

Personal credits

Charitable and other gifts

Medical expense credit

Credit for mental or physical impairment

12.1

Credit for 2001-2003

12.2

Unused tuition and education amounts 2001-2003

12.3

Transfer tax credits 2001-2003

Tuition credit

Education credit

Unused tuition and education amounts

Interest on student loan tax credit

16.1

Student loan tax credit

EI premium and CPP contribution credit

17.1

Adoption credit

17.2

Child care

tax credit

17.3

Volunteer firefighters' tax credit

17.4

Search and rescue volunteer tax credit

17.5

Physical activity tax credit

Tax credit transfer

Minimum tax carry-over

Dividend tax credit

Overseas employment tax credit

21.1

Low income

reduction

Part-year residents

Ordering of credits

Credits in separate returns

Tax payable by non-resident

Credits in year of bankruptcy

Tax payable by inter vivos

trust

Bankrupt individuals

Tax on split income

Minimum tax

Multi-jurisdictional and non-resident individuals

31.1

Pro-rating where income earned outside province

Surtax

Foreign tax deduction

Income supplement

No set off

Date on which amount applied

Application

Newfoundland and Labrador child tax benefit

Capital gains refund to mutual fund trust

Corporation tax

40.1

Small business tax holiday

Manufacturing and processing profits deduction

41.1

Manufacturing and processing investment tax credit

41.2

Green technology tax credit

Research and development tax credit

Capital gains refund to mutual fund corporations

Foreign tax credits

Film or video tax credit

45.1

Labour-sponsored venture capital tax credit

Equity tax credit

46.1

Resort property investment tax credit

46.2

Venture capital tax credit

46.3

Interactive digital media tax credit

Political contribution deduction

Tax not payable

Returns of income, assessments and withholding

Reassessment

Farmers and fishers

Instalments by other individuals

Payment by corporations

Returns, payments and interest

Computing instalments

Amount on which instalment computed

Penalties

Repeated failures

Late or deficient instalments

Refunds

Objections

Appeals

Reply to appeal

Trial

Appeals

Practice and procedure

PART II.1

CAPITAL TAX ADMINISTRATION

66.1

Interpretation

66.2

Capital tax payable

66.3

Related financial institution

66.4

Investment in related institutions

66.5

Allocation by minister

66.6

Non-provincial

amount taxable

66.7

Short taxation year

66.8

Application

PART III

ADMINISTRATION AND ENFORCEMENT

Administration

Regulations

Debts due to Crown

Certificates

Minister's warrant

Acquisition of debtor's property

Payment of money seized from tax debtor

Direction to seize chattels

Taxpayers leaving Canada

Money withheld

Director's liability

Books and records

Inspections, privileges, etc.

Penalty for failure to comply with regulations

Offence and penalty

Offence

Actions or suits

Revealing confidential information

84.1

Requirement to provide specified information

Offence by corporation

No power to decrease punishment

Information or complaint

General anti-avoidance rule

88.1

Provincial anti-avoidance rule

PART IV

COLLECTION OF TAX

Collection agreement

Application of payment

No action against persons withholding tax

Deduction at source

Non-agreeing provinces

Reciprocal enforcement of judgments

PART V

REPEAL

RSN1990 cI-1 Rep.

Schedule

Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:

Short title

This Act may be cited as the Income Tax Act, 2000 .

2000 cI-1.1 s1

PART I

INTERPRETATION

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Interpretation

(1)In this Act

(a)

(a.1)

"Canadian-controlled private corporation" means Canadian-controlled private corporation as defined in subsection 125(7) of the federal Act;

(b)

"collection agreement" means an agreement entered into

under subsection 89

(1);

(c)

"court" means the Trial Division of the Supreme Court;

(d)

"Department of Finance" means

(

i) the Department of Finance of the province, or

(ii)

where a collection agreement is in effect

(

A) in relation to the remittance of an amount as or on account of tax payable under this Act, the Receiver General of Canada , and

(

B) in relation to other matters, the Canada Revenue Agency;

(e)

"deputy head" and "assistant deputy head" mean

(

i) the Deputy Minister of Finance of the province,

(ii)

the Assistant Deputy Minister of Finance of the province, and

(iii)

where a collection agreement is in effect, the Commissioner of Revenue appointed under

section 25 of the Canada

Revenue Agency Act ;

(f)

"federal Act" means the Income Tax Act

(Canada);

(g)

"federal regulations" means the regulations made under the federal Act;

(h)

"income tax statute" means, in relation to an agreeing province, the law of that province that imposes a tax similar to

the tax imposed under this Act;

(i)

"individual" means a person other than a corporation and, except in

section 47, includes a trust or estate;

(j)

"loss" means a loss as determined in accordance with and for the purpose of the federal Act;

(k)

"minister" means

(

i) the minister appointed under the Executive Council Act

to administer this Act, or

(ii)

where a collection agreement is in effect, means

(

A) in relation to the remittance of an amount as or on account of tax payable under this Act, the Receiver General of Canada , and

(

B) in relation to other matters, the Minister of National Revenue for Canada ;

(l)

"Minister of National Revenue" means the Minister of National Revenue for Canada , but in a provision of the federal Act that applies for the purpose of this Act, a reference to the Minister of National Revenue shall be construed as a reference to the Minister of Finance;

(m)

"permanent establishment" means permanent establishment as defined in the federal regulations and where the federal regulations contain more than one definition, the one that applies is the one that most closely resembles its use for the purpose of this Act;

(n)

"prescribed" means

(

i) in the case of a form, the information to be given on a form or the manner of filing a form, authorized by the Minister of Finance or the Minister of National Revenue for Canada ,

(ii)

in the case of the manner of making or filing an election, authorized by the Minister of Finance or the Minister of National Revenue for Canada ,

(iii)

where the word is used in a provision of the federal Act that applies for the purpose of this Act, what is prescribed within the meaning assigned by subsection 248(1) of the federal Act, and

(iv)

in other cases, prescribed by the regulations;

(o)

"Receiver General" means the Receiver General of Canada , but in a provision of the federal Act that applies for the purpose of this Act, a reference to the Receiver General shall be read as a reference to the Minister of Finance;

(p)

"regulations" means regulations made by the Lieutenant-Governor in Council under this Act;

(q)

"return" means a return of income required to be filed under this Act;

(r)

"tax" means the income tax payable under and in accordance with this Act; and

(s)

"taxation year" of a person means the period determined under the federal Act as a taxation year.

(2) A reference in this Act to "last day of the taxation year" shall, in the case of an individual who resided in Canada in the taxation year but ceased to reside in Canada before the last day of the taxation year, be considered to be a reference to the last day in the taxation year on which the individual resided in Canada.

(3) The tax payable by a taxpayer under this Act or under

Part I of the federal Act means the tax payable by the taxpayer as fixed by assessment or reassessment subject to variation on objection or on appeal in accordance with this Act, or

Part I of the federal Act.

(4) For the purpose of this Act, except where they vary from the

definitions contained in this section, the

definitions and

interpretations contained in or made by the federal Act or regulations apply.

(5) In a case of doubt, the provisions of this Act shall be applied and interpreted in a manner consistent with similar provisions of the federal Act.

(6) Subsections 104(1) and (2) of the federal Act apply for the purpose of this Act.

(7) Subsection 248(11) of the federal Act applies for the purpose of this Act.

(7.1) Subsections 248(31), 248(32) and 248(33) of the federal Act apply for the purpose of this Act.

(8) Section 257 of the federal Act applies for the purpose of this Act.

(9) Where a provision, in this subsection referred to as "that section", of the federal Act or the federal regulations is made applicable for the purpose of this Act, that section, as amended from time to time before or after the commencement of this subsection, applies with those changes that the circumstances require for the purpose of this Act as though it had been enacted as a provision of this Act and in applying that

section for the purpose of this Act, in addition to other changes required by the circumstances,

(

a) a reference in that

section to tax under

Part I of the federal Act shall be read as a reference to tax under this Act;

(

b) where that

section contains a reference to tax under Parts I.1 to XIV of the federal Act, that

section shall be read without reference in it to tax under those Parts and without reference to a portion of that

section which applies only to or in respect of tax under those Parts;

(

c) a reference in that

section to a particular provision of the federal Act that is the same as or similar to

a provision of this Act shall be read as a reference to the provision of this Act;

(

d) a reference in that

section to a particular provision of the federal Act that applies for the purpose of this Act shall be read as a reference to the particular provision as it applies for the purpose of this Act;

(

e) where that

section contains a reference to one or more of Parts I.1 to XIV of the federal Act or to a provision in those Parts, that

section shall be read without reference in it to that Part or without reference to that provision and without reference to a portion of that

section that applies only because of the application of those Parts or the application of a provision in those Parts;

(

f) where that

section contains a reference to the Bankruptcy and Insolvency Act , that

section shall be read without reference in it to the Bankruptcy and Insolvency Act ;

(

g) a reference in that

section to a federal regulation that applies for the purpose of this Act shall be read as a reference to the regulation as it applies for the purpose of this Act;

(

h) a reference in that

section to "under this Act" or "under

an Act of a province with which the minister has entered into an agreement for the collection of taxes payable to the province under that Act" shall be read as a reference to under this Act; and

(

i) a reference in that

section to a word or expression set out in the left hand

column of the following table shall be read as a reference to the word or expression set out opposite to it in the right hand

column of the following table:

Table

Her Majesty

Her Majesty in right of the Province

of Newfoundland

and Labrador

Canada

Newfoundland

and Labrador

Receiver General

Minister of Finance

Minister

Minister of Finance

Commissioner of Revenue appointed under

section 25 of the Canada Revenue Agency Act

deputy head

Deputy Attorney General of Canada

Deputy Attorney General of Newfoundland

and Labrador

the Tax Court of Canada

the Supreme Court of Newfoundland and Labrador

Tax Court of Canada Act

Judicature Act

the Federal Court of Canada

the Supreme Court of Newfoundland and Labrador

Federal Court Act

Judicature Act

Registrar of the Tax Court of Canada

Chief Executive Officer of the Supreme Court of Newfoundland and Labrador

Registry of the Federal Court

Registry of the Supreme Court of Newfoundland and Labrador

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2000 cI-1.1 s2 ; 2001 cN-3.1 s2 ; 2005 c10 s1 ; 2006 c40 s21 ; 2013 c16 s25 ; 2016 c43 s1 ; 2022 c10 s1

Application of federal provisions and amendment

(1)In this section,

(a)

"federal amendment" means an amendment to a provision of the federal Act that applies for the purpose of this Act;

(b)

"federal application rule" means a provision of

an Act of Parliament that makes a federal provision, a federal amendment, or the repeal of a federal provision, apply

(

i) to specified taxation years,

(ii)

to specified fiscal periods,

(iii)

after a specified time, or

(iv)

to transactions or events that occur before or after a specified time or in specified taxation years or specified fiscal periods; and

(c)

"federal provision" means a provision of the federal Act that applies for the purpose of this Act.

(2) Where a federal application rule governs the application of a federal provision, for the purpose of applying the federal provision for the purpose of this Act, the provision shall be applied in accordance with the federal application rule as though the Legislature had enacted that rule to govern the application of the provision for the purpose of this Act.

(3) Where a federal application rule governs the application of a federal amendment amending a federal provision, for the purpose of applying that provision for the purpose of this Act, that provision shall be applied as though the federal amendment had been enacted by the Legislature and, at the time of the enactment, the Legislature had enacted that rule to govern the application of the amendment for the purpose of this Act.

(4) Where a federal provision or a federal amendment comes into force, or is considered to come into force, on a particular day, and no federal application rule governs its application, the provision or amendment is considered, for the purpose of applying it for the purpose of this Act, to come into force on that day.

(5) Where a federal provision is repealed and another provision is not substituted for it, the federal provision ceases to apply for the purpose of this Act

(

a) where the repeal is governed by a federal application rule, in accordance with that rule; and

(

b) where the repeal is not governed by a federal application rule, on the day the repeal comes into force.

(6) For the purpose of this Act, where a particular federal provision is replaced by another provision, or is repealed and another provision substituted for it, the other provision is considered to be a continuation of the particular federal provision and the replacing or the repeal and substitution is considered to be an amendment to the particular federal provision.

2000 cI-1.1 s3

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Exemption from tax

No tax is payable under this Act by a person for a period when

(

a) no tax is payable under

Part I of the federal Act for the period on the person's taxable income because of subsection 149(1) of the federal Act; or

(

b) that person was a non-resident-owned investment corporation.

2000 cI-1.1 s4

PART II

INCOME TAX

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Definitions

In sections 6 to 33,

(a)

"appropriate percentage" for a taxation year means the lowest percentage referred to in

section

that is applicable in determining tax payable under this Part for the year;

(a.1)

"eligible search and rescue organization" means eligible search and rescue organization as defined in subsection 118.07(1) of the federal Act;

(a.2)

"eligible search and rescue volunteer services" means eligible search and rescue volunteer services as defined in subsection 118.07(1) of the federal Act;

(a.3)

"eligible volunteer firefighting services" means eligible volunteer firefighting services as defined in subsection 118.06(1) of the federal Act;

(b)

"highest percentage" for a taxation year means the highest percentage referred to in

section

that is applicable in determining tax payable under this Part for the year;

(c)

"income earned in the taxation year in the province" means income earned in the year in the province as determined in accordance with federal regulations made for the purpose of the definition "income earned in the year in a province" in subsection 120(4) of the federal Act;

(d)

"income earned in the taxation year outside the province" means income for the year minus income earned in the taxation year in the province;

(e)

"income for the year" means

(

i) in the case of an individual resident in Canada during only part of the taxation year in respect of whom

section 114 of the federal Act applies or in the case of an individual not resident in Canada at any time in the taxation year, the individual's income for the year as computed under subsection 120(3) of the federal Act, and

(ii)

in the case of any other individual, the individual's income for the year as determined in accordance with, and for the purpose of, the federal Act;

(f)

"provincial percentage" for a taxation year means the appropriate percentage divided by the appropriate percentage as defined in the federal Act, expressed as a percentage that is rounded to the nearest one tenth or, where the result is equidistant from 2 consecutive one-tenths, to the higher one-tenth;

(g)

"tax payable under the federal Act" by an individual in respect of a taxation year means the amount determined under the definition "tax otherwise payable under this Part" in subsection 120(4) of the federal Act in respect of the individual for the year; and

(h)

"temporary deficit reduction levy" means the tax described in

section 7.1.

2000 cI-1.1 s5 ; 2005 c10 s2 ; 2016 c15 s1 ; 2016 c43 s2 ; 2018 c15 s1

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Liability for tax

(1)An income tax shall be paid as required by this Act for each taxation year by every individual

(

a) who was resident in the province on the last day of the taxation year; or

(

b) who, not being resident in the province on the last day of the taxation year, had income earned in the taxation year in the province.

(2) Notwithstanding a provision contained in a public or private Act or an agreement, whether enacted or entered into before or after December 15, 1961, granting or providing for the exemption of a corporation named in the Act or agreement from payment of taxes, whether or not those taxes are specified, an income tax shall be paid as required for each taxation year by every corporation that maintained a permanent establishment in the province at any time in the year.

2000 cI-1.1 s6

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Indexation

6.1

(1)For the purpose of calculating the tax payable by an individual for the 2007 taxation year, an amount expressed in dollars in a relevant section, except as provided in paragraphs 21.1(2)(

b) and (c), shall be adjusted so that the amount referred to in the relevant

section is the total of

(

a) the amount that would be used under the relevant

section for the immediately preceding taxation year; and

(

b) the product obtained by multiplying

(

i) the amount referred to in paragraph (a),

(ii)

the consumer price index amount calculated for the period and by the formula prescribed by regulation.

(2) For the purpose of calculating the tax payable by an individual for the 2008 taxation year and subsequent taxation years an amount expressed in dollars in a relevant

section shall be adjusted so that the amount referred to in the relevant

section is the total of

(

a) the amount that would be used under the relevant

section for the immediately preceding taxation year before it had been rounded to a whole dollar; and

(

b) the product obtained by multiplying

(

i) the amount referred to in paragraph (a),

(ii)

the consumer price index amount calculated for the period and by the formula, as prescribed by regulation.

(3) In this

section

(a)

"consumer price index" means the consumer price index for the province published under the Statistics Act

(Canada);

(b)

"relevant section" means

section 7, 11, 12, 17.1, 32, subsections 9(1) and (2) and paragraphs 21.1(2)(

b) and

(c); and

(

c) where an amount to which subsection (1) or (2) applies is not a multiple of one dollar when adjusted as provided in the subsection, it shall be rounded to the nearest dollar or if equidistant, shall be rounded to the higher dollar.

2007 c21 s1

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Amount of tax payable

(1)The tax payable under this Part for a taxation year by an individual on the individual's taxable income or taxable income earned in Canada, in sections 6 to 33 referred to as the "taxable income" for the 2022 taxation year and subsequent taxation years is

(

a) if the taxable income does not exceed $38,081, 8.7% of the taxable income;

(

b) if the taxable income exceeds $38,081 and does not exceed $76,161, the maximum amount determinable in respect of the taxation year under paragraph (

a) plus 14.5% of the amount by which the taxable income exceeds $38,081 for the year;

(

c) if the taxable income exceeds $76,161 and does not exceed $135,973, the maximum amount determinable in respect of the taxation year under paragraph (

b) plus 15.8% of the amount by which the taxable income exceeds $76,161 for the year;

(

d) if the taxable income exceeds $135,973 and does not exceed $190,363, the maximum amount determinable in respect of the taxation year under paragraph (

c) plus 17.8% of the amount by which the taxable income exceeds $135,973 for the year;

(

e) if the taxable income exceeds $190,363 and does not exceed $250,000, the maximum amount determinable in respect of the taxation year under paragraph (

d) plus 19.8% of the amount by which the taxable income exceeds $190,363 for the year;

(

f) if the taxable income exceeds $250,000 and does not exceed $500,000, the maximum amount determinable in respect of the taxation year under paragraph (

e) plus 20.8% of the amount by which the taxable income exceeds $250,000 for the year;

(

g) if the taxable income exceeds $500,000 and does not exceed $1,000,000, the maximum amount determinable in respect of the taxation year under paragraph (

f) plus 21.3% of the amount by which the taxable income exceeds $500,000 for the year; and

(

h) if the taxable income exceeds $1,000,000, the maximum amount determinable in respect of the taxation year under paragraph (

g) plus 21.8% of the amount by which the taxable income exceeds $1,000,000 for the year.

(2) Notwithstanding

section 6.1, the amounts referred to in paragraphs (1)(

a) to (

d) and the amount of $190,363 referred to in paragraph (1)(

e) shall be adjusted as prescribed in that

section for the 2022 taxation year.

(3) Notwithstanding

section 6.1, the amount of $250,000 referred to in paragraph (1)(

e) and the amounts referred to in paragraphs (1)(f), (

g) and (

h) shall not be adjusted as prescribed in that

section before the 2023 taxation year.

2015 c8 s1 ; 2016 c14 s1 ; 2021 c11 s1

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Temporary deficit reduction levy

7.1

(1)An individual shall pay a deficit reduction levy in accordance with subsection (3) for each of the taxation years 2016 to 2019, inclusive, if the individual is resident in the province on the last day of each of those taxation years.

(2) Notwithstanding subsection (1), a trust is not required to pay the temporary deficit reduction levy.

(3) The temporary deficit reduction levy payable by an individual for a taxation year shall be calculated using the formula in the following paragraph that applies to the individual for the taxation year, subject to subsections (4) to (6):

(

a) where the individuals taxable income for the taxation year does not exceed $50,000, the individuals temporary deficit reduction levy for the taxation year is nil;

(

b) where the individuals taxable income for the taxation year exceeds $50,000 but does not exceed $55,000, the individuals temporary deficit reduction levy for the taxation year is the amount calculated using the formula,

(0.1 x

A) where

A =

the lesser of $1,000 and the amount of the individual's taxable income in excess of

$50,000 for the taxation year;

(

c) where the individual's taxable income for the taxation year exceeds $55,000 but does not exceed $60,000, the individuals temporary deficit reduction levy for the taxation year is the amount calculated using the formula,

B + (0.1 x

C) where

B =

$100, and

C =

the lesser of $1,000 and the amount of the individual's taxable income in excess of

$55,000 for the taxation year;

(

d) where the individual's taxable income for the taxation year exceeds $60,000 but does not exceed $65,000, the individual's temporary deficit reduction levy for the taxation year is the amount calculated using the formula,

D + (0.1 x

E) where

D =

$200, and

E =

the lesser of $1,000 and the amount of the individual's taxable income in excess of

$60,000 for the taxation year;

(

e) where the individual's taxable income for the taxation year exceeds $65,000 but does not exceed $70,000, the individual's temporary deficit reduction levy for the taxation year is the amount calculated using the formula,

F + (0.1 x

G) where

F =

$300, and

G =

the lesser of $1,000 and the amount of the individual's taxable income in excess of

$65,000 for the taxation year;

(

f) where the individual's taxable income for the taxation year exceeds $70,000 but does not exceed $75,000, the individual's temporary deficit reduction levy for the taxation year is the amount calculated using the formula,

H + (0.1 x

I) where

H =

$400, and

I =

the lesser of $1,000 and the amount of the individual's taxable income in excess of

$70,000 for the taxation year;

(

g) where the individual's taxable income for the taxation year exceeds $75,000 but does not exceed $80,000, the individual's temporary deficit reduction levy for the taxation year is the amount calculated using the formula,

J + (0.1 x

K) where

J =

$500, and

K =

the lesser of $1,000 and the amount of the individual's taxable income in excess of

$75,000 for the taxation year;

(

h) where the individual's taxable income for the taxation year exceeds $80,000 but does not exceed $100,000, the individual's temporary deficit reduction levy for the taxation year is the amount calculated using the formula,

L + (0.1 x

M) where

L =

$600, and

M =

the lesser of $1,000 and the amount of the individual's taxable income in excess of

$80,000 for the taxation year;

(

i) where the individual's taxable income for the taxation year exceeds $100,000 but does not exceed $125,000, the individual's temporary deficit reduction levy for the taxation year is the amount calculated using the formula,

N + (0.1 x

O) where

N =

$700, and

O =

the lesser of $1,000 and the amount of the individual's taxable income in excess of

$100,000 for the taxation year;

(

j) where the individual's taxable income for the taxation year exceeds $125,000 but does not exceed $175,000, the individual's temporary deficit reduction levy for the taxation year is the amount calculated using the formula,

P + (0.1 x

Q) where

P =

$800, and

Q =

the lesser of $1,000 and the amount of the individual's taxable income in excess of

$125,000 for the taxation year;

(

k) where the individual's taxable income for the taxation year exceeds $175,000 but does not exceed $250,000, the individual's temporary deficit reduction levy for the taxation year is the amount calculated using the formula,

R + (0.1 x

S) where

R =

$900, and

S =

the lesser of $1,000 and the amount of the individual's taxable income in excess of

$175,000 for the taxation year;

(

l) where the individual's taxable income for the taxation year exceeds $250,000 but does not exceed $300,000, the individual's temporary deficit reduction levy for the taxation year is the amount calculated using the formula,

T + (0.1 x

U) where

T =

$1,000, and

U =

the lesser of $1,000 and the amount of the individual's taxable income in excess of

$250,000 for the taxation year;

(

m) where the individual's taxable income for the taxation year exceeds $300,000 but does not exceed $350,000, the individual's temporary deficit reduction levy for the taxation year is the amount calculated using the formula,

V + (0.1 x

W) where

V =

$1,100, and

W =

the lesser of $1,000 and the amount of the individual's taxable income in excess of

$300,000 for the taxation year;

(

n) where the individual's taxable income for the taxation year exceeds $350,000 but does not exceed $400,000, the individual's temporary deficit reduction levy for the taxation year is the amount calculated using the formula,

X + (0.1 x

Y) where

X =

$1,200, and

Y =

the lesser of $1,000 and the amount of the individual's taxable income in excess of

$350,000 for the taxation year;

(

o) where the individual's taxable income for the taxation year exceeds $400,000 but does not exceed $450,000, the individual's temporary deficit reduction levy for the taxation year is the amount calculated using the formula,

Z + (0.1 x AA)

where

Z =

$1,300, and

AA =

the lesser of $1,000 and the amount of the individual's taxable income in excess of

$400,000 for the taxation year;

(

p) where the individual's taxable income for the taxation year exceeds $450,000 but does not exceed $500,000, the individual's temporary deficit reduction levy for the taxation year is the amount calculated using the formula,

BB + (0.1 x CC)

where

BB =

$1,400, and

CC =

the lesser of $1,000 and the amount of the individual's taxable income in excess of

$450,000 for the taxation year;

(

q) where the individual's taxable income for the taxation year exceeds $500,000 but does not exceed $550,000, the individual's temporary deficit reduction levy for the taxation year is the amount calculated using the formula,

DD + (0.1 x EE)

where

DD =

$1,500, and

EE =

the lesser of $1,000 and the amount of the individual's taxable income in excess of

$500,000 for the taxation year;

(

r) where the individual's taxable income for the taxation year exceeds $550,000 but does not exceed $600,000, the individual's temporary deficit reduction levy for the taxation year is the amount calculated using the formula,

FF + (0.1 x GG)

where

FF =

$1,600, and

GG =

the lesser of $1,000 and the amount of the individual's taxable income in excess of

$550,000 for the taxation year; and

(

s) where the individual's taxable income for the taxation year exceeds $600,000, the individual's temporary deficit reduction levy for the taxation year is the amount calculated using the formula,

HH + (0.1 x II)

where

HH =

$1,700, and

II =

the lesser of $1,000 and the amount of the individual's taxable income in excess of

$600,000 for the taxation year.

(4) For the purpose of subsection (3), t

he following rules apply if an individual is bankrupt in a calendar year:

(

a) the individuals taxable income for the calendar year for the purposes of this

section is deemed to be the sum of all amounts, each of which is the individuals taxable income for a taxation year ending in the year;

(

b) the individuals temporary deficit reduction levy for the calendar year shall be allocated to and payable in respect of each taxation year ending in the year in the manner described in paragraphs (

c) to (e);

(

c) for a taxation year that is deemed to end under subparagraph 128(2)(d)(ii) of the federal Act on the day immediately before the day on which the individual became a bankrupt, the amount of the individuals temporary deficit reduction levy payable for the year is the amount that would be determined in accordance with subsection (3) if the taxation year were the only taxation year of the individual ending in the calendar year;

(

d) for a taxation year that ends after the day on which the individual became a bankrupt, the temporary deficit reduction levy payable in respect of a return filed under subparagraph 128(2)(

e) of the federal Act is deemed to be nil; and

(

e) for any other return filed for a taxation year that ends after the day on which the individual became a bankrupt , the temporary deficit reduction levy payable in respect of the return is the amount calculated using the formula

A - B

where

A =

the individuals temporary deficit reduction levy for the calendar year as determined under subsection (3) as if each reference in that subsection to "taxation year" were read as a reference to "calendar year", and

B =

the amount of the individuals temporary deficit reduction levy, if any, in respect of the taxation year described in paragraph (c).

(5) For the purpose of subsection (3), the taxable income of an individual who dies in a particular year does not include income that is reported in a return filed as a result of

an election made under subsection 70 (2), 104 (23) or 150 (4) of the federal Act.

(6) The amount of the temporary deficit reduction levy payable by an individual for a taxation year that ends on or before December 31, 2016

is 50 per cent of the amount otherwise calculated under subsection (3).

2016 c15 s2 ; 2022 c10 s2

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CPP/QPP disability benefits and other lump sum payments for previous years

There shall be added in computing an individual's tax payable under this Part for a taxation year the amount determined by the formula

A x B

where

is the provincial percentage; and

is the total of,

(

a) the amount added under

section 120.3 of the federal Act for the purpose of computing the individual's tax payable under

Part I of the federal Act for the taxation year;

(

b) the amount added under

section 120.31 of the federal Act for the purpose of computing the individual's tax payable under

Part I of the federal Act for the taxation year; and

(

c) the amount added under

section 40 of the Income Tax Application Rules

(Canada) for the purpose of computing the individual's tax payable under

Part I of the federal Act for the taxation year.

2000 cI-1.1 s8

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Personal credits

(1)For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted an amount determined by the formula

A x B

where

is the appropriate percentage for the year; and

is the total of,

(

a) in the case of an individual who at any time in the year is a married person or common law partner who supports the individual's spouse or common law partner and is not living separate and apart from the spouse or common law partner by reason of a breakdown of their marriage or common law partnership, an amount equal to the total of

(i)

$13,094, and

(ii)

the amount determined by the formula

$6,055 - (C - $606)

where

is the greater of $606 and the income of the individual's spouse or common law partner for the year or, where the individual and the individual's spouse or common law partner are living separate and apart at the end of the year because of a breakdown of their marriage or common law partnership, the spouse's or common law partner's income for the year while married or in a common law partnership and not so separated;

(

b) in the case of an individual who does not claim a deduction for the year because of paragraph (

a) and who, at any time in the year,

(

i) is an unmarried person, or a married person or a person in a common law partnership who neither supported nor lived with the spouse or common law partner and is not supported by the spouse or common law partner, and

(ii)

whether alone or jointly with one or more other persons, maintains a self-contained domestic establishment in which the individual lives and actually supports

in that establishment a person who, at that time, is

(

A) except in the case of a child of the individual, resident in Canada

(

B) wholly dependent for support on the individual, or the individual and the other person or persons,

(

C) related to the individual, and

(

D) except in the case of a parent or grandparent of the individual, either under 18 years of age or so dependent by reason of mental or physical infirmity,

an amount equal to the total of

(iii)

$13,094, and

(iv)

the amount determined by the formula

$6,055 - (D - $606)

where

is the greater of $606 and the dependent person's income for the year;

(

c) except in the case of an individual entitled to a deduction because of paragraph (

a) or (b), $13,094;

(

d) in the case of an individual who, at any time in the year alone or jointly with one or more persons, maintains a self-contained domestic establishment which is the ordinary place of residence of the individual and of a particular person

(

i) who has attained the age of 18 years before that time,

(ii)

who is

(

A) the individual's child or grandchild, or

(

B) resident in Canada

and is the parent, grandparent, brother, sister, aunt, uncle, nephew or niece of the individual or of the individual's spouse or common law partner, and

(iii)

who is

(

A) the individual's parent or grandparent and has attained the age of 65 years before that time, or

(

B) dependent on the individual because of the particular person's

mental or physical infirmity,

the amount determined by the formula

$13,853 - D.1

where

D.1

is the greater of $11,500 and the particular person's

income for the year;

(

e) for each dependant of the individual for the year who

(

i) attained the age of 18 years before the end of the year, and

(ii)

was dependent on the individual because of mental or physical infirmity,

the amount determined by the formula

$7,410 - E

where

is the greater of $5,057 and the dependant's income for the year; and

(

f) in the case of an individual entitled to a deduction in respect of a person because of paragraph (

b) and who would also be entitled, but for paragraph 118(4)(

c) of the federal Act, as that provision existed for the 2016 taxation year and as it applies to this Act, to a deduction because of paragraph (

d) or (

e) in respect of the person, the amount by which the amount that would be determined under paragraph (

d) or (e), exceeds the amount determined under paragraph (

b) in respect of the person.

(2) For the purpose of computing the tax payable under this Part for the 2020 and subsequent taxation years by an individual who, before the end of the year, has attained the age of 65 years, there may be deducted the amount determined by the formula

A x ($6,063 -

B) where

is the

appropriate

percentage for the year; and

is 15% of the amount, if any, by which the individual's income for the year would exceed $33,226 if, in computing that income, no amount were included in respect of a gain from a disposition of property to which

section 79 of the federal Act applies and no amount were deductible under paragraph 20(1)(ww) of the federal Act

(3) For the purpose of computing the tax payable under this Part for a taxation year, by an individual who was resident in the province on the last day of the taxation year, there may be deducted an amount determined by the formula

A x B

where

is the appropriate percentage for the year; and

is the lesser of

(a)

$1,000; and

(

b) the amount determined under paragraph (

b) of the description of B in subsection 118(3) of the federal Act and used in computing the individuals deduction under that

section for the taxation year.

(4) Subsections 118(4), (5) and (6) of the federal Act apply to subsection (1) and subsections 118(7) and (8) of the federal Act apply to subsection (3).

(5) Notwithstanding

section 6.1, the amount of $13,094 referred to in subparagraphs 9(1)(a)(

i) and 9(1)(b)(iii) and paragraph 9(1)(

c) shall not be adjusted as prescribed in that

section before the 2027 taxation year.

2000 cI-1.1 s9 ; 2005 c10 s3 ; 2010 c7 s2 ; 2019 c26 s1 ; 2022 c10 s3 ; 2026 c14 s1

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Charitable and other gifts

(1)For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted the amount determined by the formula

(A x B) + [C x (D - B)]

where

is the appropriate percentage for the year;

is the lesser of $200 and the individual's total gifts for the year;

is the highest percentage for the year; and

is the individual's total gifts used to determine the deducted amount under subsection 118.1(3) of the federal Act by the individual for the year.

(2) Section 118.1 and subsection 143(3.1) of the federal Act apply for the purpose of this Act, except that subsection (1) of this

section applies instead of subsection 118.1(3) of the federal Act.

2000 cI-1.1 s10 ; 2008 c47 s7 ; 2010 c3 s1

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Medical expense credit

(1)For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted an amount determined by the formula

A x ((B-C) +

D) where

is the appropriate percentage for the year;

is the amount used in the formula in subsection 118.2(1) of the federal Act for B in computing the individual's deduction under that

section for the year;

is the smaller of $1,614 and 3% of the individual's income for the year; and

is the amount that would be determined in the formula in subsection 118.2(1) of the federal Act for D in computing the individual's deduction under that

section for the year if the reference to $1,813 in the description of F in that subsection is read as a reference to $1,614.

(2) Section 118.2 of the federal Act applies for the purpose of this Act, except that subsection (1) of this

section applies instead of subsection 118.2(1) of the federal Act.

2000 cI-1.1 s11 ; 2005 c10 s4

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Credit for mental or physical impairment

(1)Where an individual is entitled to deduct an amount under subsection 118.3(1) of the federal Act for the purpose of computing the individual's tax payable for a taxation year under

Part I of the federal Act, for the purpose of computing the tax payable under this Part by the individual for the taxation year, there may be deducted an amount determined by the formula

A x (B +

C) where

is the appropriate percentage for the year;

is $5,000; and

(

a) where the individual has not attained the age of 18 years before the end of the year, the amount, if any, by which

(i)

$2,353

exceeds

(ii)

the amount, if any, by which

(

A) the total of all amounts each of which is an amount paid in the year for the care or supervision of the individual and included in computing a deduction under

section 63, 64 or 118.2 of the federal Act for a taxation year

exceeds

(B)

$2,000; and

(

b) in any other case, zero.

(2) Sections 118.3 and 118.4 of the federal Act apply for the purpose of this Act, except that subsection (1) of this

section applies instead of subsection 118.3(1) of the federal Act.

(3) Notwithstanding subsection (2), for the purpose of computing the tax payable under this Part for a taxation year ending after 2003 by an individual who is entitled to a deduction under subsection 118.3(2) of the federal Act for the taxation year in respect of a person referred to in that subsection, there may be deducted the amount, if any, by which

(

a) the amount deductible under subsection (1) in computing that persons tax payable under this Part for the taxation year, or that would be so deductible if the person were liable under

section 6 to pay tax for the taxation year;

exceeds

(

b) the amount of that persons tax payable under this Part for the taxation year if the person were liable under

section 6 to pay tax for the taxation year, computed before any deductions under this Part other than deductions referred to in sections 9 and 17.

2000 cI-1.1 s12 ; 2003 c6 s1 ; 2005 c10 s5

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Credit for 2001-2003

12.1

Notwithstanding

section 12, for the purpose of computing an individuals tax payable under this Part for a taxation year ending before 2004, where the person referred to in subsection 118.3(2) of the federal Act did not reside in the province on the last day of the taxation year, there may deducted for that taxation year an amount determined by the formula

A/B x C

where

is the appropriate percentage;

is the appropriate percentage under the federal Act; and

(

a) for the 2003 taxation year, the amount that the individual is entitled to deduct under subsection 118.3(2) of the federal Act for the year; and

(

b) for the 2001 and 2002 taxation years, the amount that the individual is entitled to deduct under subsection 118.3(2) of the federal Act for the year if determined without reference to the amount for C in the formula provided in that subsection.

2005 c10 s6

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Unused tuition and education amounts 2001-2003

12.2

(1)For the purpose of determining the amount that may be deducted under subsection 15(1) for a taxation year ending before 2004 by an individual who did not reside in the province on the last day of the preceding taxation year, the individuals unused tuition and the education tax credits at the end of the preceding taxation year shall be the lesser of

(

a) the amount that would be the individuals unused tuition and education tax credits at the end of the preceding taxation year as determined under

section 118.61 of the federal Act if the percentage applied under sections 118.5 and 118.6 of the federal Act had been the appropriate percentage for the year instead of the appropriate percentage as defined in that Act; and

(

b) the amount that would be the individuals unused tuition and education tax credits at the end of the preceding taxation year as determined under a statutory

section similar to

section 118.61 of the federal Act or of another province or territory of Canada in which the individual resided on the last day of the taxation year for the preceding taxation year provided that the percentage applied under that

section had been the appropriate percentage for the year.

(2) For the purpose of subsection (1), where there is no

section of a statute of a province in which the individual resided on the last day of the taxation year for the preceding taxation year that is similar to

section 118.61 of the federal Act, the individuals unused tuition and education tax credits for the preceding taxation year shall be deemed to equal the amount determined under paragraph (1)(a).

(3) For the purpose of subsection (1),

(

a) the amount referred to in paragraph (1)(

a) shall be used only to the extent that it has not been used in claiming a credit under

section 118.5, 118.6 or 118.61 of the federal Act or in determining credits transferred under

section 118.81 of the federal Act for a taxation year; and

(

b) the amount referred to in paragraph (1)(

b) shall be used only to the extent that it has not been used in claiming a credit under a statutory

section similar to

section 118.5, 118.6 or 118.61 of the federal Act or of another province or territory of Canada or in determining credits transferred under a

section that is similar to

section 118.81 of the federal Act for a taxation year of an income tax statute or similar Act of the province or territory in which the individual resided on the last day of the taxation year for the preceding taxation year.

2005 c10 s6

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Transfer tax credits 2001-2003

12.3

(1)Notwithstanding

section 18, this

section shall apply to a taxation year ending before 2004.

(2) Sections 118.8 and 118.81 of the federal Act apply for the purpose of this Act, except that the reference to $850, or the amount that it is amended to read, in subparagraph (ii) of the description of A in paragraph 118.81(

a) of the federal Act shall be read as a reference to the product obtained by multiplying $5,000 by the appropriate percentage for the taxation year.

(3) Where for a taxation year a parent or grandparent of an individual, other than an individual in respect of whom the individuals spouse or common law partner deducts an amount for the year under paragraph 9(1)(

a) or subsection 18(1) of this Act,

section 118 or 118.8 of the federal Act or similar provisions of an income tax statute of another province or territory, is the only person designated in writing by the individual for the year for the purpose of this subsection and no other person is designated for the purpose of

section 118.9 of the federal Act or a similar provision of an income tax statute of another province or territory, there may be deducted in computing the tax payable under this Part for the year by the parent or grandparent, the tuition and education tax credits transferred for the year by the individual to the parent or grandparent.

(4) Notwithstanding subsections (2) and (3) for the purpose of the application of

section 118.81 of the federal Act to this Act, where a person did not reside in the province on the last day of the taxation year, the tuition and education tax credits transferred for the taxation year by the person to an individual shall be equal to the lesser of

(

a) the amount determined by the formula

A/B x C

where

is the appropriate percentage under this Act;

is the appropriate percentage under the federal Act; and

is the amount determined in respect of the person under

section 118.81 of the federal Act for the purpose of computing the persons tax payable under

Part I of the federal Act for the taxation year; and

(

b) the amount determined by the formula

D/E x F

where

is the appropriate percentage under this Act;

is the appropriate percentage under the federal Act; and

is the amount determined in respect of the person for the taxation year as determined under a

section of an income tax statute or similar Act of the province or territory in which the individual resided on the last day of the taxation year for the preceding taxation year that is similar to

section 118.81 of the federal Act.

(5) For the purpose of subsection (4), where there is no

section that is similar to

section 118.81 of the federal Act in an enactment of the province or territory in which the individual resided on the last day of the taxation year for the preceding taxation year, the individuals unused tuition and education tax credits at the end of the preceding taxation year shall be deemed to equal the amount determined under paragraph (4)(a).

(6) Notwithstanding subsections (2) and (3), for the purpose of

section 118.8 of the federal Act, as that

section applies for the purposes of this Act, where in a taxation year an individuals spouse or common law partner did not reside in the province on the last day of the taxation year,

(

a) the amount for B in the formula in

section 118.8 of the federal Act, as that

section applies for the purpose of this Act, for the individual for the taxation year shall be equal to the amount determined by the formula

G/H x I

where

is the appropriate percentage under this Act;

is the appropriate percentage under the federal Act; and

the amount determined for the individual for B in the formula in

section 118.8 of the federal Act for the purpose of computing the individuals tax payable under

Part I of the federal Act for the taxation year; and

(

b) the amount for C in the formula in

section 118.8 of the federal Act, as that

section applies for the purpose of this Act, for the individual for the taxation year shall be equal to the amount determined by the formula

J/K x L

where

is the appropriate percentage under this Act;

is the appropriate percentage under the federal Act; and

is the amount determined for the individual for C in the formula in

section 118.8 of the federal Act for the purpose of computing the individuals tax payable under

Part I of the federal Act for the taxation year.

2005 c10 s6

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Tuition credit

Section 118.5 of the federal Act applies for the purpose of this Act, except that any reference to "appropriate percentage" in that

section is to be read as a reference to "appropriate percentage", as that term is defined for the purpose of this Part, for the purpose of this Act.

2000 cI-1.1 s13

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Education credit

(1) For the purpose of computing the tax payable under this Part by an individual who is a qualifying student for a taxation year, there may be deducted an amount determined by the formula

A x B

where

is the appropriate percentage for the year; and

is the total of the products obtained when

(a)

$200 is multiplied by the number of months in the year during which the individual is enrolled in a qualifying educational program as a full-time student at a designated educational institution; and

(b)

$60 is multiplied by the number of months in the year, other than months described in paragraph (a), each of which is a month during which the individual is enrolled at a designated educational institution in a specified educational program that provides that each student in the program spend not less than 12 hours in the month on courses in the program.

(2) Subsections 118.6(1) and (3) of the federal Act apply for the purpose of this Act.

2000 cI-1.1 s14 ; 2022 c10 s4

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Unused tuition and education amounts

(1)For the purpose of computing an individuals tax payable under this Part for a taxation year, there may deducted the lesser of the

(

a) individuals unused tuition and education credits at the end of the preceding taxation year; and

(

b) amount that would be the individual's tax payable under this Part for the year if no amount were deductible under this Part, other than an amount deductible under this

section and

section 9, 12, 17, 17.1, 17.2, 17.3 or 17.4.

(2) An individual's unused tuition and education tax credits at the end of the taxation year is the amount determined by the formula

A + (B - C) - (D +

E) where

is the individual's unused tuition and education credits at the end of the preceding taxation year;

is the total of all amounts, each of which may be deducted under sections 13 and 14 in computing the individual's tax payable under this Part for the year;

is the lesser of the value of B and the amount that would be the individual's tax payable under this Part for the year if no amount were deductible under this Part, other than an amount deductible under this

section and

section 9, 12, 17, 17.1, 17.2, 17.3 or 17.4;

is the amount that the individual may deduct under subsection (1) for the year; and

is the tuition and education tax credits transferred for the year by the individual to the individual's spouse, common law partner, parent or grandparent.

2005 c10 s7 ; 2007 c12 s1 ; 2016 c43 s3 ; 2018 c15 s2

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Interest on student loan tax credit

Section 118.62 of the federal Act applies for the purpose of this Act, except that any reference to "appropriate percentage" in that

section is to be read as a reference to "appropriate percentage", as that term is defined for the purpose of this Part, for the purpose of this Act.

2000 cI-1.1 s16

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Student loan tax credit

16.1

(1)Where, in a taxation year, an individuals taxable income does not exceed $50,000, there may be deducted from the tax otherwise payable by that individual an amount determined by the following formula:

A x B

where

is the amount of principal paid in that year with respect to a loan issued under the Student Financial Assistance Act , 2019;

and

is the appropriate tax credit factor listed in Column A of the

schedule to this Act.

(2) Notwithstanding subsection (1), where an individual is eligible to claim an amount under paragraph 9(1)(

b) with respect to the individuals child or an amount under

section 12:

is the appropriate tax credit factor listed in Column B of the

Schedule to this Act.

(3) Subsections (1) and (2) shall not apply to a return filed by an individual under subsections 70(2), 104(23) or 150(4) of the federal Act.

(4) Subsections (1) and (2) shall apply only to a return filed by an individual for the 2003 taxation year.

2004 c16 s1 ; 2019 cS-29.02 s28 ; 2022 c10 s5

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EI premium and CPP contribution credit

Section 118.7 of the federal Act applies for the purpose of this Act, except that any reference to "appropriate percentage" in that

section is to be read as a reference to "appropriate percentage", as that term is defined for the purpose of this Part, for the purpose of this Act.

2000 cI-1.1 s17

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Adoption credit

17.1

(1)For the purpose of computing the tax payable under this Part for a taxation year by an individual who was resident in the province on the last day of the taxation year, there may be deducted an amount determined by the formula:

A x B

where

is the appropriate percentage for the year; and

is the amount that would be determined in the formula in subsection 118.01(2) of the federal Act for B in computing the individuals deduction under that

section for the year, if the amount in paragraph 118.01(2)(

a) of the federal Act is read as $10,000.

(2) Section 118.01 of the federal Act applies for the purpose of this Act, except that subsection (1) of this

section applies instead of subsection 118.01(2) of the federal Act.

2005 c44 s1

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Child care tax credit

17.2

For the purpose of computing the tax payable under this Part for a taxation year by an individual who was resident in the province on the last day of the taxation year, there may be deducted an amount determined by the formula:

A x B

where

is the appropriate percentage for the year; and

is an amount that is deducted in computing the taxpayers income for the year under

section 63 of the federal Act.

2011 c24 s1 ; 2019 c26 s2

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Volunteer firefighters' tax credit

17.3

For the purpose of computing the tax payable under this Part for a taxation year by an individual who was resident in the province on the last day of the taxation year and who performs eligible volunteer firefighting services in the year, there may be deducted the amount determined by multiplying $6,000 by the appropriate percentage for the year if the individual

(

a) performs in the year not less than 200 hours of services each of which is an hour of

(

i) eligible volunteer firefighting services for a fire department, or

(ii)

eligible search and rescue volunteer services for an eligible search and rescue organization;

(

b) provides the certificates referred to in subsections 118.06(3) and 118.07(3) of the federal Act when requested by the Minister of National Revenue; and

(

c) has not deducted an amount under

section 17.4 for the year.

2016 c43 s4 ; 2018 c15 s3 ; 2019 c26 s2 ; 2026 c14 s2

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Search and rescue volunteer tax credit

17.4

For the purpose of computing the tax payable under this Part for a taxation year by an individual who was resident in the province on the last day of the taxation year and who performs eligible search and rescue volunteer services in the year, there may be deducted the amount determined by multiplying $6,000 by the appropriate percentage for the year if the individual

(

a) performs in the year not less than 200 hours of services each of which is an hour of

(

i) eligible search and rescue volunteer services for an eligible search and rescue organization, or

(ii)

eligible volunteer firefighting services for a fire department;

(

b) provides the certificates referred to in subsections 118.07(3) and 118.06(3) of the federal Act when requested by the Minister of National Revenue; and

(

c) has not deducted an amount under

section 17.3 for the year.

2018 c15 s4 ; 2019 c26 s2 ; 2026 c14 s3

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Physical activity tax credit

17.5

(1)In this

section

(a)

"eligible fitness expense" means the amount of a fee paid to a qualifying entity to the extent that the fee is attributable to the cost of registration of the individual in an eligible program of physical activity or membership in an eligible organization and, for the purposes of this section, that cost includes

(

i) the cost to the qualifying entity of the program in respect of its administration, instruction, rental of required facilities and uniforms and equipment, if any, that are not available to be acquired by a participant in the program for an amount less than their fair market value at the time they are acquired,

but does not include

(ii)

the cost of accommodation, travel, food or beverages, or

(iii)

any amount deductible under

section 63 of the federal Act in computing any person's income for any taxation year;

(b)

"eligible program of physical activity" means

(

i) a program of physical activity in which all or substantially all of

the activities include a significant amount of physical activity, or

(ii)

a program offered by an organization in circumstances where a participant may select from a variety of activities offered as a part of the program and

(

A) at least 50% of those activities include a significant amount of physical activity, or

(

B) at least 50% of the time scheduled for those activities offered is for activities that include a significant amount of physical activity;

(c)

"membership in an eligible organization" means membership in an organization where a member may select from a variety of activities offered as a part of the membership and

(

i) at least 50% of those activities include a significant amount of physical activity, or

(ii)

at least 50% of the time scheduled for those activities offered is for activities that include a significant amount of physical activity;

(d)

"physical activity" means an activity, other than an activity where an individual rides on or in a motorized vehicle as an essential component of that activity, that contributes to cardio-respiratory endurance and to one or more of the following:

(

i) muscular strength,

(ii)

muscular endurance,

(iii)

flexibility, and

(iv)

balance;

(e)

"qualifying entity" means a person or partnership that offers one or more programs of physical activity; and

(f)

"return of income" means in respect of an individual who is resident in the province at the end of the taxation year, the individual's return of income, other than a return of income under subsection 70(2) or 104(23), paragraph 128(2)(

e) or subsection 150(4) of the federal Act, that is required to be filed for the taxation year or that would be required to be filed if the individual had tax payable under that Act for the taxation year.

(2) An individual who

(

a) is resident in the province at the end of the taxation year;

(

b) files a return of income for a taxation year; and

(

c) makes a claim under this

section

is considered to have paid, at the end of the year, on account of tax payable under this Part for the year, an amount equal to the amount determined by the formula

A x B

where

A is 17.4%;

B is the total of all amounts each of which is, in respect of an individual for the year, the lesser of $2,000 and the amount determined by the formula

C - D

where

C is the total of all amounts each of which is an amount paid in the taxation year by the individual or by the individual's spouse or common-law partner that is an eligible fitness expense in respect of

(

i) the individual or the individual's spouse or common-law partner, or

(ii)

a child of the individual or child of the individual's spouse or common-law partner, if the child was less than 18 years of age at the end of the taxation year; and

D is the total of all amounts that any individual is or was entitled to receive, each of which relates to an amount included in computing the value of C in respect of the individual that is the amount of a reimbursement, allowance or any other form of assistance, other than an amount that is included in computing the income for any taxation year of that individual and that is not deductible in computing the taxable income of that individual.

(3) Where more than one individual is entitled to make a claim under this

section for a taxation year for an amount paid in the taxation year by the individual or by the individual's spouse or common-law partner in respect of

(

a) the individual or the individual's spouse or common law partner; or

(

b) a child of the individual or child of the individual's spouse or common-law partner, if the child was less than 18 years of age at the end of the taxation year,

the total of all amounts considered to have been paid shall not exceed the maximum amount that could be considered to have been paid for the year by any one of those individuals if that individual were the only individual entitled to claim an amount for the year under this section.

(4) Where the individuals referred to in subsection (3) cannot agree as to what portion of the maximum amount each can claim, the minister may fix the portions.

(5) An individual who becomes bankrupt in a calendar year is entitled to claim, for each taxation year that ends in the calendar year, only the amounts that the individual is entitled to claim for the taxation year, except that the sum of all amounts that may be claimed under this

section for all taxation years of the individual ending in the calendar year shall not exceed the total amount that the individual would have been entitled to claim in respect of the calendar year if the individual had not become bankrupt.

(6) An individual who is resident in Canada for only part of a taxation year is entitled to claim for the year only the amount the individual would be entitled to claim for the year under this

section that can reasonably be considered wholly applicable to any period in the year throughout which the individual was resident in Canada, computed as though that period were the whole taxation year, except that the amount that may be claimed under this

section shall not exceed the amount that the individual would have been entitled to claim under this

section if the individual had been resident in Canada throughout the year.

(7) For the purposes of paragraph (1)(a), an amount paid to an individual who is, at the time the amount is paid, the individuals parent, spouse or common-law partner or an individual who is under 18 years of age is not considered an eligible fitness expense.

(8) For the purposes of paragraph (1)(d), horseback riding is considered to be

an activity that contributes to cardio-respiratory endurance and to one or more of muscular strength, muscular endurance, flexibility and balance.

(9) For the purposes of this section, an individual who dies during the taxation year and was resident in the province on the day of the individual's death is considered to be

an individual who is resident in the province at the end of the taxation year.

(10) This

section does not apply to an individual who is exempt from tax under

section 149 of the federal Act.

2021 c12 s1 ; 2022 c10 s6 ; 2023 c12 s20

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Tax credit transfer

(1)For the purpose of computing the tax payable under this Part for a taxation year by an individual who, at any time during the year, is a married person or is in a common law partnership, other than an individual who, by reason of a breakdown of their marriage or common law partnership, is living separate and apart from the individuals spouse or common law partner at the end of the year and for a period of 90 days commencing in the year, there may be deducted an amount determined by the formula

A + B - C

where

is the tuition and education tax credits transferred for the year by the spouse or common law partner to the individual;

is the total of all amounts, each of which is deductible under subsections 9(2) and 9(3) and

section 12 in computing the spouses or common law partners tax payable under this Part for the year, or that would be so deductible if the spouse or common law partner were liable under

section 6 to pay tax for the year; and

is the amount, if any, by which

(

a) the amount that would be the spouse's or common law partner's tax payable under this Part for the year, or that would be so payable under this Part for the year if the spouse or common law partner were liable under

section 6 to pay tax for the year, if no amount were deductible under this Part, other than an amount deductible under paragraph 9(1)(

c) and sections 15, 17, 17.1, 17.2, 17.3 and 17.4;

exceeds

(

b) the lesser of

(

i) the total of all amounts that may be deducted under sections 13 and 14 in computing the spouses or common law partners tax payable under this Part for the year, or that would be so deductible if the spouse or common law partner were liable under

section 6 to pay tax for the year, and

(ii)

the amount that would be the spouse's or common law partner's tax payable under this Part for the year, or that would be so payable under this Part for the year if the spouse or common law partner were liable under

section 6 to pay tax for the year, if no amount were deductible under this Part other than an amount deductible under sections 9, 12, 15, 17, 17.1, 17.2, 17.3 and 17.4.

(2) Where for a taxation year a parent or grandparent of an individual, other than an individual in respect of whom the individuals spouse or common law partner deducts an amount for the year under paragraph 9(1)(

a) or subsection 18(1) of this Act,

section 118 or 118.8 of the federal Act or similar provisions of an income tax statute of another province or territory, is the only person designated in writing by the individual for the year for the purpose of this subsection and no other person is designated for the purpose of

section 118.9 of the federal Act, or a similar provision of an income tax statute of another province or territory, there may be deducted in computing the tax payable under this Part for the year by the parent or grandparent, the tuition and education tax credits transferred for the year by the individual to the parent or grandparent.

(3) In this section, the tuition and education tax credits transferred for a taxation year by a person to an individual is the lesser of

(

a) the amount determined by the formula

A - B

where

is the lesser of

(

i) the total of all amounts that may be deducted under sections 13 and 14 in computing the person's tax payable under this Part for the year, or that would be so deductible if the person were liable under

section 6 to pay tax for the year, and

(ii)

the amount obtained by multiplying $5,000 by the appropriate percentage for the taxation year; and

is the amount that would be the person's tax payable under this Part for the year if no amount were deductible under this Part other than an amount deductible under sections 9, 12, 15, 17, 17.1, 17.2, 17.3 and 17.4; and

(

b) the amount for the year that the person designates in writing for the purpose of subsection (1) or (2).

2005 c10 s8 ; 2016 c43 s5 ; 2018 c15 s5 ; 2022 c10 s7

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Minimum tax carry-over

There may be deducted in computing an individual's tax payable under this Part for a taxation year the amount determined by the formula

A x B

where

is the provincial percentage; and

is the amount that the individual may deduct for the taxation year under

section 120.2 of the federal Act for the purpose of computing the individual's tax payable under

Part I of the federal Act.

2000 cI-1.1 s19 ; 2004 c47 s20

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Dividend tax credit

For the purpose of

computing the tax payable under this Part for a taxation year by an individual who was resident in the province on the last day of the taxation year, there may be deducted an amount equal to the total of

(a)

3.2% of the total of the amount required under paragraph 82(1)(

a) and subparagraph 82(1)(b)(

i) of the federal Act to be included in computing the individual's income for the year; and

(b)

6.3% of the total of the amount required under paragraph 82(1)(a.1) and subparagraph 82(1)(b)(ii) of the federal Act to be included in computing the individual's income for the year.

2016 c18 s1 ; 2021 c12 s2

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Overseas employment tax credit

For the purpose of computing the tax payable under this Part for a taxation year by an individual who was resident in the province on the last day of the taxation year, there may be deducted an amount equal to the provincial percentage of the amount that the individual may deduct under

section 122.3 of the federal Act for that taxation year.

2005 c10 s9

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Low income

reduction

21.1

(1)In this

section

(a)

"adjusted income" of an individual for a taxation year means the total of all amounts, each of which would be the income for the year of the individual and the individuals qualified relation for the year, if any, within the meaning assigned by

section 122.6 of the federal Act;

(b)

"eligible individual" for a taxation year means an individual, other than a trust, who is resident in the province on December 31 of the taxation year and includes an individual who died during the taxation year and who was resident in the province on the individuals day of death; and

(c)

"qualified relation" of an individual for a taxation year means the person who, at the end of the year, is the individuals cohabiting spouse or common law partner within the meaning assigned by

section 122.6 of the federal Act, or where a cohabitating spouse or common law partner died during the taxation year, the individuals deceased cohabitating spouse or common law partner.

(2) Where an eligible individual for a taxation year files

a return of income under this Act, the amount, if any, by which A + B exceeds 16% of the amount, if any, by which

(

a) the eligible individuals adjusted income for the year;

exceeds

(b)

$18,547; or

(

c) where the eligible individual has a qualified relation for the year or claims an amount under paragraph 9(1)(

b) for the year, $31,362,

may be deducted from the tax otherwise payable under this Act by the individual for the taxation year.

(2.1) In subsection (2)

(

a) A is an amount prescribed and calculated in accordance with the regulations; and

(

b) B is an amount prescribed and calculated in accordance with the regulations where the eligible individual has a qualified relation for the year or claims an amount under paragraph 9(1)(

b) for the year.

(3) Notwithstanding subsection (2), where an individual is a qualified relation of, or is an individual for whom an amount is claimed under paragraph 9(1)(

b) by, another individual for a taxation year, only one of those individuals may apply under subsection (2) for the year.

(4) For the purpose of computing tax payable under this Act for a taxation year by an individual who is a qualified relation of an eligible individual who applies under subsection (2) for the year, there may be deducted an amount, if any, determined by the formula

A - B

where

A =

is the amount which is deductible under subsection (2) in computing the eligible individuals tax payable under this Act for the year; and

B =

is the amount that would be the eligible individuals tax payable under this Act for the year if no amount were deductible under this section

(5) Where computing an individuals tax payable under this Act, this

section shall be applied last after any other tax credit sections which may apply to the computation of that individuals tax payable.

2004 c19 s1 ; 2005 c10 s10 ; 2007 c12 s3 ; 2007 c21 s3 ; 2009 c30 s6 ; 2010 c37 s1 ; 2014 c12 s2 ; 2022 c10 s8

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Part-year residents

Section 118.91 of the federal Act applies for the purpose of this Act and shall be read to include a reference to

section 17.2 of this Act.

2016 c43 s6

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Ordering of credits

(1)Section 118.92 of the federal Act applies for the purpose of this Act.

(2) Where computing an individuals tax payable under this Act, the following sections shall be applied in the listed order:

(a)

subsections 9(1) and (2);

(

b) section 17;

(b.1)

subsection 9(3);

(b.2)

section 17.1;

(b.3)

section 17.2;

(b.4)

section 17.3;

(b.5)

section 17.4;

(

c) section 12;

(

d) section15;

(

e) section 13;

(

f) section 14;

(

g) section 18;

(

h) section 11;

(

i) section 10;

(

j) section 16;

(

k) section 20;

(

l) section 21;

(

m) section 19;

(

n) section 33;

(

o) section 47;

(

p) section 45.1;

(

q) section 46; and

(

r) section 21.1

2000 cI-1.1 s23 ; 2004 c16 s2 ; 2005 c10 s11 ; 2005 c44 s2 ; 2007 c12 s4 ; 2011 c24 s2 ; 2012 c5 s2 ; 2018 c15 s6

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Credits in separate returns

Section 118.93 of the federal Act applies for the purpose of this Act.

2000 cI-1.1 s24

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Tax payable by non-resident

Section 118.94 of the federal Act applies for the purpose of this Act and shall be read to include a reference to

section 17.2 of this Act.

2016 c43 s7

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Credits in year of bankruptcy

Section 118.95 of the federal Act applies for the purpose of this Act

and shall be read to include a reference to sections 16.1 and 17.2 of this Act.

2016 c43 s7

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Tax payable by inter vivos trust

Section 122 of the federal Act applies for the purpose of this Act, except that the reference to "29%", or to the percentage that it is amended to read,

in subsection 122(1) of the federal Act shall be read, for the purpose of this Act, as a reference

to the "highest percentage".

2000 cI-1.1 s27

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Bankrupt individuals

Subsection 128(2) of the federal Act applies for the purpose of this Act.

2000 cI-1.1 s28

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Tax on split income

(1)Section 120.4 of the federal Act applies for the purpose of this Act, except that the reference to "29%", or to the percentage that it is amended to read, in subsection 120.4(2) of the federal Act shall be read, for the purpose of this Act, as a reference to the "highest percentage".

(2) Notwithstanding paragraph

(9)(i), in this

section a reference to "Canada" in the

definitions of "source individual" and "specified individual" in subsection 120.4(1) of the federal Act, shall not be read as a reference to Newfoundland and Labrador.

2000 cI-1.1 s29 ; 2022 c10 s9

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Minimum tax

Where an individual is required to pay tax under

section 127.5 of the federal Act in respect of a taxation year, there shall be added to the individual's tax payable under this Part for the taxation year an amount determined by the formula

A x B

where

is the provincial percentage; and

is the amount that would be the individual's additional tax for the taxation year determined under subsection 120.2(3) of the federal Act.

2000 cI-1.1 s30

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Multi-jurisdictional and non-resident individuals

Notwithstanding sections

, the tax payable under sections

for a taxation year by an individual

(

a) who resided in the province on the last day of the taxation year but had income earned in the taxation year outside the province; or

(

b) who did not reside in the province on the last day of the taxation year but had income earned in the taxation year in the province,

shall be the amount determined by the formula

A x B

where

is the tax otherwise payable by the individual under sections

is the individual's income earned in the taxation year in the province; and

is the individual's income for the year.

2000 cI-1.1 s31

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Pro-rating where income earned outside province

31.1

Where an individual resided in the province on the last day of a taxation year but had income earned in the taxation year outside the province, the individual may deduct from the amount of tax otherwise payable for the taxation year as determined under

section 31 an amount determined by the formula

A x B/C

where

is the total of all amounts each of which is deductible under subsection 9(3) and sections 17.1 to 17.4 and 20 by the individual for the taxation year;

is the individuals income earned in the taxation year outside the province; and

is the individuals income for the year.

2005 c10 s12 ; 2007 c12 s5 ; 2022 c10 s10

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Surtax

In addition to the income tax payable, computed in accordance with sections 6 to 31, by an individual for the 2007 taxation year, every individual shall pay a personal income surtax equal to 4.5% of the amount by which the tax computed under sections 6 to 31 for that taxation year exceeds $7,032.

2007 c21 s4

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Foreign tax deduction

(1)Where an individual resided in the province on the last day of a taxation year and had income for that year that included income earned in a country other than Canada in respect of which non-business income tax was paid by the individual to the government of a country other than Canada, the individual may deduct from the tax payable by the individual under this Act for that taxation year an amount equal to the lesser of

(

a) the amount, if any, by which non-business income tax paid by the individual for the year to the government of the other country exceeds the amount

(

i) section 127.5 of the federal Act does not apply to the individual for the taxation year, that is deductible from the individuals tax payable under

Part I of the federal Act for that year under subsection 126(1) of the federal Act that is in respect of non-business income tax paid to the government of that country, or

(ii)

section 127.5 of the federal Act applies to the individual for the taxation year, of the individuals special foreign tax credit for the year determined under

section 127.54 of the federal Act that is in respect of non-business income tax paid to the government of that country; and

(

b) the proportion of the tax otherwise payable under this Act for that taxation year where

(

i) the amount, if any, by which the total of the individuals qualifying incomes exceeds the total of the individuals qualifying losses

(

A) for the year, if the individual is resident in Canada

throughout the year, and

(

B) for the part of the year throughout which the individual is resident in Canada

, if the individual is non-resident at any time in the year,

from sources in that country, where

(

C) no businesses were carried out by the individual in that country,

(

D) no amount was deducted under subsection 91(5) of the federal Act in computing the individuals income for the year, and

(

E) the individuals income from employment in that country was not from a source in that country to the extent of the lesser of the amounts determined in respect of it under paragraphs 122.3(1)(

c) and (

d) of the federal Act for the year,

is of,

(ii)

the amount, if any, by which

(

A) if the individual was resident in Canada

throughout the year, the individuals income earned in the year in the province computed without reference to paragraph 20(1)(ww) of the federal Act, and

(

B) if the individual was not resident, in Canada at any time in the year the individuals income earned in the year in the province that is included in the amount determined under paragraph 114(

a) of the federal Act in respect of the individual for the year,

exceeds

(

C) the total of all amounts, each of which is an amount deducted under

section 110.6 or paragraph 111(1)(

b) of the federal Act or deductible under paragraphs 110(1)(

d) to (

g) of the federal Act for the year, in computing the individuals taxable income for the year.

(2) For the purposes of subsection (1) and paragraph 44(1)(b), non-business income tax paid by a taxpayer to the government of a country other than Canada in respect of the taxpayers income for a taxation year is the non-business income tax paid by the taxpayer to the government of that country in respect of that year as determined under the definition "non-business income tax" in subsection 126(7) of the federal Act.

(3) For the purpose of this section, where an individuals income for a taxation year includes income from sources in more than one country other than Canada

, subsection (1) shall be read as providing for separate deductions in respect of each of the countries other than Canada

(4) For the purpose of this

section and

section 44

(

a) the government of the country other than Canada

includes the government of a state, province or other political subdivision of that country;

(

b) if income from a source in a particular country would be tax-exempt income except that a portion of the income is subject to an income or profits tax imposed by the government of a country other than Canada, that portion is deemed to be income from a separate source in the particular country

; and

(

c) if, in computing a taxpayers income for a taxation year from a business carried on by the taxpayer in Canada, an amount is included in respect of interest paid or payable to the taxpayer by a person resident in a country other than Canada, and the taxpayer has paid to the government of that other country a non-business income tax for the year with respect to the amount, the amount is, in applying the definition " qualifying incomes"

in subsection (5) for the purpose of subsection (1), deemed to be income from a source in that other country.

(5) In this

section and

section 44, "qualifying incomes", "qualifying losses" and "tax exempt income" shall have the same meaning as in subsection 126(7) of the federal Act.

2005 c10 s13 ; 2016 c43 s8 ; 2022 c10 s11

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Income supplement

(1)In this

section

(a)

"adjusted income", "cohabiting spouse or common-law partner", "qualified dependant" and "qualified relation" have the meanings assigned to them under subsection 122.5(1) of the federal Act;

(b)

"eligible individual" means an eligible individual as defined in subsection 122.5(1) of the federal Act and who is resident in the province in relation to a month specified for a taxation year; and

(c)

"return of income" in respect of a person for a taxation year means,

(

i) for a person who is resident in the province at the end of the taxation year, the persons return of income, other than a return of income under subsection 70(2) or 104(23), paragraph 128(2)(

e) or subsection 150(4) of the federal Act, that is required to be filed for the taxation year or that would be required to be filed if the person had tax payable under that Act for the taxation year, and

(ii)

in any other case, a prescribed form containing prescribed information that is filed for the taxation year with the Minister of National Revenue.

(2) Notwithstanding subsection (1), a person is not an eligible individual, a qualified relation or a qualified dependant of an individual in relation to a month specified for a taxation year where that person

(

a) died before the specified month;

(

b) is at the beginning of the specified month a person described in paragraph 149(1)(

a) or (

b) of the federal Act;

(

c) is confined to a prison or similar institution for a period of at least 90 days that includes the first day of the specified month; or

(

d) is a person in respect of whom a special allowance under the Childrens Special Allowances Act

(Canada) is payable for the specified month.

(3) An eligible individual in relation to a month specified for a taxation year who files a return of income for the taxation year is considered to have paid during the specified month on account of the eligible individuals tax payable under this Act for the taxation year an amount equal to 25% of the amount, if any, calculated in accordance with the regulations.

(4) Notwithstanding subsections (3) and (6), if an eligible individual is a shared-custody parent, within the meaning assigned by

section 122.6 of the federal Act, but with the words "qualified dependant" in that

section having the meaning assigned by subsection (1), in respect of one or more qualified dependants at the beginning of a month, the amount considered by subsection (3) to have been paid duringa specified month is equal to the amount determined by the following formula:

1/2 (A +

B) where

the amount determined under subsection (3), calculated without reference to this subsection; and

the amount determined under subsection (3), calculated without reference to this subsection and subparagraph (b)(ii) of the definition "eligible individual" in

section 122.6 of the federal Act.

(5) Subsection (4) applies for amounts that are considered to be

paid during months after June 2011.

(6) Notwithstanding subsection (3), if an individual is a qualified relation of another individual, in relation to a month specified for a taxation year, only one of them is an eligible individual in relation to the specified month and if both of them claim to be eligible individuals, the individual that the Minister of National Revenue designates is the eligible individual in relation to the specified month.

(7) Where a person considered to have paid an amount under subsection (3) dies prior to the month specified, that persons qualified relation who has filed a return of income for the taxation year is considered to be the eligible individual for the purpose of subsection (3) for that taxation year and the amount payable for the specified month shall be considered to be an amount paid on account of the persons qualified relations tax payable under this Act for the specified month.

(8) An individual shall notify the Minister of National Revenue of the occurrence of any of the following events before the end of the month following the month in which the event occurs

(

a) the individual ceases to be an eligible individual;

(

b) a person becomes or ceases to be the individuals qualified relation; and

(

c) a person ceases to be a qualified dependant of the individual, otherwise than because of attaining the age of 19 years.

(9) For the purpose of this section, where, in a taxation year, an individual becomes bankrupt, the individuals income for that year shall include the individuals income for the taxation year that begins on January 1 of the calendar year that includes the date of bankruptcy.

(10) Subsection (11) applies in respect of an eligible individual in relation to a particular month specified for a taxation year, and each subsequent month specified for the taxation year, if

(

a) the amount considered by that subsection to have been paid by the eligible individual during the particular month

specified for the taxation year is less than $10; and

(

b) it is reasonable to conclude that the amount considered by that subsection to have been paid by the eligible individual during each subsequent month specified for the taxation year will be less than $10.

(11) Where this subsection applies, the total of the amounts that would otherwise be considered by subsection (3) to have been paid on account of the eligible individuals tax payable under this Part for the taxation year during the particular month specified for the taxation year, and during each subsequent month specified for the taxation year, is considered to have been paid by the eligible individual on account of the eligible individuals tax payable under this Part for the taxation year during the particular specified month for the taxation year, and the amount considered by subsection (3) to have been paid by the eligible individual during those subsequent months specified for the taxation year is considered, except for the purpose of this subsection, not to have been paid to the extent that it is included in an amount considered to have been paid by this subsection.

(12) For the purpose of this section, the months specified for a taxation year are July and October of the immediately following taxation year and January and April of the second immediately following taxation year.

2016 c18 s2 ; 2022 c10 s12

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No set off

(1)Notwithstanding

section 60

of this Act, subsection 164(2) of the federal Act does not apply to an amount considered under subsection 34

(3) of this Act to be an amount paid by an individual on account of the individuals tax payable under this Act for a taxation year.

(2) Subsection (1) does not apply where the taxpayer's liability referred to in subsection 164(2) of the federal Act arose from the operation of paragraph 160.1(1)(

a) of the federal Act with respect to an amount refunded to the taxpayer in excess of

the amount to which the taxpayer was entitled under subsection 34

(3) of this Act.

2000 cI-1.1 s35 ; 2016 c18 s3 ; 2022 c10 s13

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Date on which amount applied

Where a taxpayer has requested that an amount, considered under subsection 34

(3) of this Act to be an amount paid by an individual on account of the individuals tax payable under this Act for a taxation year, be applied to a liability of the taxpayer and the taxpayer's return of income for the year is filed on or before the day it was required by

section 150 of the federal Act to be filed, the amount shall be considered to have been applied on the day on which it would have been refunded if the taxpayer was not liable to make a payment to Her Majesty in right of Canada.

2000 cI-1.1 s36 ; 2016 c18 s4 ; 2022 c10 s14

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Application

For the purpose of

applying paragraph 2

(9)(

c) of this Act,

section 122.5 of the federal Act is considered to be

the same as or similar to

section 34

of this Act.

2000 cI-1.1 s37

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Newfoundland

and Labrador

child tax benefit

(1)In this

section

(a)

"adjusted income", "base taxation year", "cohabitating spouse", "eligible individual", "qualified dependant", "return of income" and "shared-custody parent" have the meanings assigned to them under

section 122.6 of the federal Act; and

(b)

"Newfoundland and Labrador child benefit" means, with respect to an eligible individual, the amount of an overpayment as calculated according to the formula prescribed under paragraph

(1)(e).

(2) Notwithstanding paragraph

(9)(i), in this

section a reference to "Canada" in the

definitions of "eligible individual" and "return of income", and in paragraph 122.61(3)(

a) and in the

preamble to subsection 122.61(3) of the federal Act, shall not be read as a reference to Newfoundland and Labrador.

(3) An overpayment in the amount of the Newfoundland and Labrador child benefit on account of an individual's liability under this Act for a taxation year is considered to have arisen during a month in relation to which the taxation year is the base taxation year, where

(

a) the individual has filed a return of income for that year;

(

b) if the minister demands, the cohabiting spouse, at the end of the taxation year, has filed a return of income for that year; and

(

c) the individual was resident in the province immediately before and on the first day of that month.

(4) No overpayment is considered to have arisen under this

section in a month before July 1, 1999

(5) Subsection 122.61(2), paragraph 122.61(3)(a), subsection 122.61(3.1) and subsections 122.62(1), (2), (4), (5) and (6) of the federal Act apply for the purpose of this section.

(6) A refund of an amount considered to be an overpayment under this

section

(

a) cannot be charged or given as security;

(

b) cannotcannot be assigned except under a prescribed Act;

(

c) cannot be garnished or attached;

(

d) is exempt from execution and seizure; and

(

e) cannot be retained by way of deduction or set-off

under the Financial Administration Act.

(7) The minister may specify a form to be used for the purpose of this section.

2000 cI-1.1 s38 ; 2001 cN-3.1 s2 ; 2010 c37 s3

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Capital gains refund to mutual fund trust

(1)A mutual fund trust that is entitled to a refund under

section 132 of the federal Act for a taxation year is entitled to receive, at the time and in the manner provided in

section 132 of the federal Act for the refund under that section, a capital gains refund for the taxation year equal to,

(

a) where the mutual fund trust had no income earned in the taxation year outside the province, the product of the amount of the refund for the taxation year under

section 132 of the federal Act multiplied by the percentage referred to in paragraph 5(

f) to be used in computing the tax payable by the mutual fund trust under this

section for the taxation year; or

(

b) where the mutual fund trust had income earned in the taxation year outside the province, that proportion of the amount that would be determined under paragraph (a), if all income earned in the taxation year by the mutual fund trust had been earned in the province, that the income earned by it in the taxation year in the province is of its total income for the taxation year.

(2) Instead of making a refund that might otherwise be made under subsection (1), the minister may, where the trust is liable or about to become liable to make a payment under this Act, apply the amount that would otherwise be refunded to that other liability and notify the trust of that action.

2000 cI-1.1 s39

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Corporation tax

(1) The tax payable by a corporation for a taxation year is 15% of the corporation's taxable income earned in the year in the province.

(2) For the purpose of this

section and sections

and

, "taxable income earned in the year in the province" means the taxable income earned in the year in the province by a corporation as determined in accordance with federal regulations made for the purpose of the definition "taxable income earned in the year in a province" in subsection 124(4) of the federal Act.

(3) Notwithstanding subsection (1), where in a taxation year a corporation is eligible for a deduction under

section 125 of the federal Act, the tax payable by that corporation under this Act for a taxation year is equal to the total of

(a)

2.5 % of an amount calculated by allocating to the province, on the same basis as set out in the regulations made for the purpose of the definition "taxable income earned in the year in a province" in subsection 124(4) of the federal Act, a portion of the amount that is the least of the amounts calculated under paragraphs 125(1)(a), (

b) and (

c) of the federal Act and allowed for the purpose of subsection 125(1) of the federal Act in respect of the corporation for the year; and

(b)

15% of an amount calculated by deducting from the corporation's taxable income earned in the year in the province the amount allocated to the province under paragraph (

a) in respect of the corporation for the year.

(4) Notwithstanding subsection (3), if a corporation's taxation year includes January 1, 2026, and where in a taxation year a corporation is eligible for a deduction under

section 125 of the federal Act, the tax payable by that corporation under this Act for a taxation year is equal to the total of

(

a) that proportion of 2.5% that the number of days in the taxation year that are before January 1, 2026 is of the number of days in the taxation year of an amount calculated by allocating to the province, on the same basis as set out in the regulations made for the purpose of the definition "taxable income earned in the year in a province" in subsection 124(4) of the federal Act, a portion of the amount that is the least of the amounts calculated under paragraphs 125(1)(a), (

b) and (

c) of the federal Act and allowed for the purpose of subsection 125(1) of the federal Act in respect of the corporation for the year; and

(

b) that proportion of 2% that the number of days in the taxation year that are after December 31, 2025 is of the number of days in the taxation year of an amount calculated by allocating to the province, on the same basis as set out in the regulations made for the purpose of the definition "taxable income earned in the year in a province" in subsection 124(4) of the federal Act, a portion of the amount that is the least of the amounts calculated under paragraphs 125(1)(a), (

b) and (

c) of the federal Act and allowed for the purpose of subsection 125(1) of the federal Act in respect of the corporation for the year.

2000 cI-1.1 s40 ; 2010 c7 s4 ; 2014 c12 s3 ; 2016 c16 s1 ; 2016 c43 s9 ; 2024 c6 s1

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Small business tax holiday

40.1

(1) In this

section

(a)

"active business" means an active business carried on by a corporation as defined in subsection 125(7) of the federal Act;

(b)

"new corporation" means a corporation that carries on a qualifying business, and

(

i) was incorporated under the Corporations Act

after March 31, 2003

and before April 1, 2006 , and

(ii)

with respect to a taxation year, is eligible to claim a deduction under subsection 125(1) of the federal Act;

(c)

"non-qualifying business" means a business

(

i) the principal purpose of which is

(

A) wholesale or retail trade,

(

B) real estate marketing or development,

(

C) oil and gas development or production,

(

D) mineral resource exploration,

(

E) fish harvesting and primary fish processing except the processing of underutilized species that the minister may designate,

(

F) to provide prepared food for consumption on or off the premises, or

(

G) the sale of alcoholic beverages for consumption on the premises,

(ii)

which is the professional practice of an accountant, dentist, lawyer, medical doctor, veterinarian or chiropractor, or

(iii)

which is engaged in personal services, managerial, administrative, financial, maintenance or similar business services, professional practices and trades, unless all or substantially all of

those services relate to tourism, export or import activities that the minister may designate;

(d)

"north-east Avalon" means the towns of Bauline, Conception Bay South, Flatrock, Logy Bay-Middle Cove-Outer Cove, Paradise, Petty Harbour, Portugal Cove-St. Philip's, Pouch Cove and Torbay continued under the Towns and Local Service Districts Act , the City of Mount Pearl incorporated under the City of Mount Pearl Act

and the City of St. John's incorporated under the City of St. John's Act ; and

(e)

"qualifying business" means a business, other than a non-qualifying business, that carries on an active business in the province in one or more of the following sectors:

(

i) technology,

(ii)

research and development,

(iii)

aquaculture,

(iv)

forestry and agrifoods,

(

v) manufacturing,

(vi)

processing,

(vii)

export,

(viii)

import replacement,

(ix)

tourism, or

(

x) cultural activities.

(2) For the purposes of this section, individuals or corporations or both are related if they are related within the meaning of

section 251 of the federal Act.

(3) There may be deducted from the tax otherwise payable under this Part, for each of the first, second and third taxation years of operation of a new corporation, an amount not exceeding the tax otherwise payable under paragraph 40(3)(

a) for the taxation year.

(4) A new corporation that has maintained its establishment and operations outside the north-east Avalon for its first, second and third taxation years and maintains its establishment and operations there for the fourth and fifth years may deduct from the tax otherwise payable under this Part for each of the fourth and fifth taxation years of the corporation an amount equal to the tax otherwise payable under paragraph 40(3)(

a) for the taxation year.

(5) For the purpose of a deduction of tax under this section, a new corporation shall minimize its tax liability for the taxation year for which the deduction is claimed by claiming all allowable deductions and credits from tax otherwise payable.

(6) A new corporation is considered to have maintained its establishment and operations outside the north-east Avalon if more than 50% of the total salaries and wages it paid in the taxation year were paid to persons reporting to work at an establishment outside the north-east Avalon.

(7) A new corporation may apply for a deduction under subsection (3) or (4) on the form required by the minister and shall provide the information required by the minister.

(8) Where the minister receives an application under subsection (7) and is satisfied that the new corporation qualifies for the deduction under this section, the minister shall issue a certificate to the corporation authorizing the deduction.

(9) In order to claim a deduction for a taxation year under this section, a new corporation shall file the certificate referred to in subsection (8) with its annual return for the taxation year, as required by this Act.

(10) A new corporation is not eligible for a certificate from the minister authorizing the deduction unless the corporation applies for the deduction within the 3 years immediately following the taxation year for which the deduction is being claimed.

(11) A new corporation is not eligible for a deduction under this

section for a taxation year where it, or a predecessor corporation within the meaning of

section 87 of the federal Act,

(

a) was associated with another corporation within the meaning of

section 256 of the federal Act, unless the minister waives this restriction with respect to the association with the other corporation;

(

b) carried on an active business in the taxation year by reason of being a member of a partnership, where another member of the partnership was not eligible for a deduction under subsection (3) or (4) for the taxation year;

(

c) was a beneficiary of a trust, where another beneficiary of the trust was not eligible for a deduction under subsection (3) or (4) for the taxation year;

(

d) carried on an active business in the taxation year by reason of being a co-venturer in a joint venture, where another co-venturer in the joint venture was not eligible for a deduction under subsection (3) or (4) for the taxation year;

(

e) has carried on an active business by reason of having acquired, by purchase or otherwise, or leased property from, another corporation, called the "vendor", where the new corporation or the predecessor corporation, their shareholders, or persons related to the new corporation, the predecessor corporation or their shareholders, beneficially owned, directly or indirectly, more than 10% of the issued shares of a class of the capital stock of the vendor; or

(

f) has carried on an active business by reason of having acquired, by purchase or otherwise, or leased property from, a sole proprietorship or partnership in respect of which the corporation, its shareholders, or persons related to it or its shareholders, beneficially owned the sole proprietorship or partnership.

(12) Paragraphs (11)(

e) and (

f) apply only where the new corporation carries on the same or substantially the same business that was carried on by a corporation referred to in paragraph (11)(

e) or a sole proprietorship or partnership referred to in paragraph (11)(

f) except where the sole proprietorship or partnership carried on the business for a period of 90 days or less.

(13) A corporation shall not be entitled to a deduction under this

section for a taxation year where, as a result of a transaction or an event, or a series of transactions or events, property of a business has been transferred, or has been considered to have been transferred, either directly or indirectly, to the corporation, and it is reasonable for the minister to believe that one of the principal purposes of the transfer or considered transfer is to enable the corporation to claim a deduction from tax under this

section that it could not otherwise claim.

(14) A corporation is not entitled to a deduction under this

section for a taxation year where, as a result of a disposition, a disposition considered to have been made or a series of dispositions of shares of a corporation, it is reasonable for the minister to believe that one of the principal purposes of the disposition, considered disposition or the series of dispositions is to enable the corporation to claim a deduction from tax under this

section that it could not otherwise claim.

(15) The Lieutenant-Governor in Council may make regulations

(

a) defining, restricting or enlarging the meaning of a word or expression used in this section; and

(b)

2003 c6 s3 ; 2023 cT-6.2 s323

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Manufacturing and processing profits deduction

(1) Where in a taxation year that ends before 2016 a portion of the taxable income earned in the year in the province by a corporation is Canadian manufacturing and processing profits of the corporation for the year, within the meaning assigned by subsection 125.1(3) of the federal Act, there may be deducted from the tax otherwise payable by the corporation under subsection 40(1) or paragraph 40(3)(b), whichever applies, 9% of the amount, if any, by which those manufacturing and processing profits earned in the year in the province by the corporation exceed the amount, if any, upon which tax is payable under paragraph 40(3)(

a) by the corporation for the year.

(1.1) Where in a taxation year that includes January 1, 2016, a portion of the taxable income earned in the year in the province by a corporation is Canadian manufacturing and processing profits of the corporation for the year, within the meaning assigned by subsection 125.1(3) of the federal Act, there may be deducted from the tax otherwise payable by the corporation under subsection 40(1) or paragraph 40(3)(b), whichever applies, the proportion that the number of days in the taxation year before January 1, 2016 is of the number of days in the taxation year multiplied by 9% of the amount, if any, by which those manufacturing and processing profits earned in the year in the province by the corporation exceed the amount, if any, upon which tax is payable under paragraph 40(3)(

a) by the corporation for the year.

(2) For the purpose of subsections (1) and (1.1), the manufacturing and processing profits earned in a taxation year in the province by a corporation are the Canadian manufacturing and processing profits of the corporation for the year, within the meaning assigned by subsection 125.1(3) of the federal Act, multiplied by the proportion that its taxable income earned in the year in the province bears to the total of all amounts each of which is its taxable income earned in the year in a province determined in accordance with federal regulations made for the purpose of the definition "taxable income earned in the year in a province" in subsection 124(4) of the federal Act.

(3) Notwithstanding subsections (1), (1.1) and (2), no deduction may be made under this

section unless the corporation has engaged in manufacturing or processing in the taxation year from a permanent establishment in the province.

(4) Subsection (3) is considered to have come into force on April 1, 2003

and applies to a corporation in respect of the corporation's taxation year ending after March 31, 2003

and subsequent taxation years.

2000 cI-1.1 s41 ; 2003 c4 s1 ; 2016 c18 s5

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Manufacturing and processing investment tax credit

41.1

(1)In this section,

(a)

"capital cost" means the capital cost referred to in paragraph (

a) of the definition of investment tax credit in subsection 127(9) of the federal Act;

(b)

"eligible corporation" means a corporation that

(

i) has a permanent establishment in the province, and

(ii)

acquired eligible property in a taxation year;

(c)

"eligible property" means qualified property that is

(

i) located in the province, and

(ii)

acquired for and used in a business operating in the province;

(d)

"manufacturing and processing investment tax credit" means the amount that is equal to 10% of an eligible corporation's qualified investment;

(e)

"qualified investment" means the portion of the capital cost that relates to eligible property acquired by an eligible corporation in a taxation year;

(f)

"qualified property" means qualified property as defined in subsection 127(9) of the federal Act; and

(g)

"refundable amount" means an amount equal to 40% of an eligible corporation's manufacturing and processing investment tax credit for a taxation year.

(2) An eligible corporation may deduct from the tax otherwise payable by it under this Act for a taxation year an amount not exceeding the lesser of

(

a) its manufacturing and processing investment tax credit for the taxation year; and

(

b) the tax otherwise payable by it under this Act for the taxation year.

(3) Where an eligible corporation is a Canadian-controlled private corporation and its manufacturing and processing investment tax credit for a taxation year exceeds the tax otherwise payable by it under this Act for the taxation year, an amount not exceeding the lesser of the amount by which its manufacturing and processing investment tax credit for the taxation year exceeds the tax otherwise payable by it under this Act for the taxation year and the refundable amount may be applied by the minister to pay

(

a) a tax, interest or penalty owing by the eligible corporation for that or a prior taxation year under this Act, the income tax statute of an agreeing province or the federal Act;

(

b) a contribution, penalty or interest owing by the eligible corporation for that or a prior taxation year as a result of

payments required from the eligible corporation under the Canada Pension Plan Act ; and

(

c) a premium, interest or penalty owing by the eligible corporation for that or a prior taxation year under the Employment Insurance Act

(Canada).

(4) Any part of the amount that may be applied under paragraphs (3)(

a) to (

c) that is not applied shall be refunded to the eligible corporation.

(5) Where an eligible corporation's manufacturing and processing investment tax credit for a taxation year exceeds the total of

(

a) the amount deducted from tax under subsection (2);

(

b) any amount applied under subsection (3); and

(

c) any amount refunded under subsection

(4) for the taxation year, the eligible corporation may apply the excess manufacturing and processing investment tax credit amount towards tax payable by it under this Act in any of the 3 taxation years immediately preceding or the 20 taxation years immediately following the taxation year but only to the extent that it has not been applied to tax payable for another taxation year.

(6) Notwithstanding subsection (5), the excess manufacturing and processing investment tax credit amount referred to in subsection (5) shall not be applied to tax payable by the eligible corporation for a taxation year that ended before this

section comes into force.

(7) This

section does not apply to an eligible corporation that is exempt from tax under

section 149 of the federal Act.

(8) Where 2 or more corporations amalgamate within the meaning of subsection 87(1) of the federal Act and one or more of the corporations had a

manufacturing and processing investment tax credit

for any taxation year, any portion of which was not deducted by it in computing its tax otherwise payable under this Act for any taxation year, for the purpose of determining the

manufacturing and processing investment tax credit

of the new eligible corporation for a taxation year preceding any taxation year of the new eligible corporation, the new eligible corporation shall be considered to be the same corporation as, and a continuation of, each such predecessor eligible corporation.

(9) Where

(

a) a subsidiary, within the meaning assigned by subsection 88(1) of the federal Act, is wound up and that subsection applies to the winding-up; and

(

b) at the end of the last taxation year of the subsidiary it had a

manufacturing and processing investment tax credit,

any portion of which was not deducted in computing its tax otherwise payable under this Act by it for the year,

for the purpose of applying this section, the parent,

within the meaning assigned by subsection 88(1) of the federal Act,

shall be considered to be

the same person as, and a continuation of, the subsidiary.

2022 c10 s15 ; 2026 c15 s1

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Green technology tax credit

41.2

(1)In this section,

(a)

"capital cost" means the capital cost referred to in the description of item A contained in the definition of undepreciated capital cost in subsection 13(21) of the federal Act;

(b)

"eligible corporation" means a Canadian-controlled private corporation that

(

i) has a permanent establishment in the province, and

(ii)

acquired eligible property in a taxation year;

(c)

"eligible property" means property described in Class 43.1 or 43.2 of

Schedule II to the Income Tax Regulations

(Canada) that is

(

i) located in the province, and

(ii)

acquired for and used in a business operating in the province;

(d)

"green technology tax credit" means the amount that is the lesser of

(i)

20% of an eligible corporation's qualified investment in a taxation year, and

(ii)

the eligible corporation's tax credit limit for the taxation year;

(e)

"qualified investment" means the portion of the capital cost that relates to eligible property acquired by an eligible corporation in a taxation year; and

(f)

"refundable amount" means an amount equal to 40% of an eligible corporation's green technology tax credit for a taxation year.

(2) For the purpose of subparagraph (1)(d)(ii), an eligible corporation's tax credit limit for a taxation year is,

(a)

$1 million where the eligible corporation is not associated in the taxation year with any other corporations within the meaning of

section 256 of the federal Act;

(b)

$1 million multiplied by the percentage assigned to the eligible corporation in the agreement

referred to in subparagraph (ii) where

(

i) the eligible corporation is associated in the taxation year with one or more other corporations within the meaning of

section 256 of the federal Act,

(ii)

all corporations that are associated with the eligible corporation

in the taxation year

file with the minister an agreement, in the form set by the minister, that assigns for the purposes of this

section a percentage to one or more eligible corporations, and

(iii)

the total of the percentages assigned in the agreement referred to in subparagraph (ii) does not exceed 100%; and

(

c) nil in any other case.

(2.1) Notwithstanding subsection (2),

(

a) where

an eligible corporation, in this paragraph referred to as the "first eligible corporation",

has more than one taxation year ending in the same calendar year and it is associated in 2 or more of those taxation years with another eligible corporation that has a taxation year ending in that calendar year, the first eligible corporation's tax credit limit for each taxation year ending in that calendar year in which it is associated with the other eligible corporation is, subject to the application of paragraph (b), an amount equal to the first eligible corporation's tax credit limit for the first such taxation year determined without reference to paragraph (b); and

(

b) where an eligible corporation has a taxat