Corporation Capital Tax
Corporation Capital Tax on financial institutions is a tax levied on the amount of capital employed in Nova Scotia by certain financial institutions until 31 October 2021.
Most provinces and the Federal government have capital taxes on financial institutions.
Nova Scotia's Corporation Capital Tax (CCT) on financial institutions is a tax levied on the amount of capital employed in Nova Scotia by certain financial institutions.
The Nova Scotia Corporation Capital Tax rate is 4%. Companies that pay the Nova Scotia Corporations Capital Tax can deduct this amount against their financial statements’ net income which reduces federal and provincial tax liability.
Determining the corporation’s capital tax base
The capital tax base for the Corporation Capital Tax is defined under the Nova Scotia Corporation Capital Tax Act and regulations. The base includes items such as the value of paid-up capital stock, surpluses and reserves.
The limitation period for a refund or recovery of overpayment is 10 years from the date it was paid or occurred.
Financial Institutions Capital Tax
For financial institutions with tax years commencing 1 November 2021 and later, the Financial Institutions Capital Tax will apply. The Nova Scotia Financial Institutions Capital Tax (FICT) came into effect for tax years commencing 1 November 2021 and later. The capital tax on financial institutions is harmonized with the federal government’s tax on capital of financial Institutions.