  Manufacturing and processing |
Choose whether the corporation is claiming the manufacturing and processing profits deduction here.
The following options are applicable for the keyword M&PProfits.
 See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 227 - M&P
Line 249 - Tobacco surtax
Line 3153 - B Manufacturing and Processing
Line 3154 - C Manufacturing and Processing
Line 3183 - O Manufacturing and Processing
Line 3184 - P Manufacturing and Processing
Line 616 - M&P profits deduction
 See the CRA's general income tax guide:
Line 616 - Manufacturing and processing profits deduction and zero-emission technology manufacturing deduction
Use the keyword PrevYr-Exempt to indicate whether or not the qualifying M&P corporation was exempt from corporation capital tax in the previous year.
If a corporation qualifies for this exemption, no further Corporation Capital Tax Returns will be required to be filed in the future. However, if in a fiscal year beginning before Jan. 1, 2011, the percentage of M&P activities in Manitoba reduces to 50% or less, the corporation must file a Corporation Capital Tax Return for that year.
The following options are applicable for the keyword PrevYr-Exempt.
See the Taxnet Pro™ T2 Line-by-Line Guide (subscription required):
Line 227 - M&P
Line 249 - Tobacco surtax
Line 3153 - B Manufacturing and Processing
Line 3154 - C Manufacturing and Processing
Line 3183 - O Manufacturing and Processing
Line 3184 - P Manufacturing and Processing
Line 616 - M&P profits deduction
See the CRA's general income tax guide:
Line 616 - Manufacturing and processing profits deduction and zero-emission technology manufacturing deduction
Use the keyword Ont-M&PActivity to indicate the type of activity in Ontario that generated eligible Canadian profits in order to determine the tax credit for M&P.
The following options are applicable for the keyword Ont-M&PActivity.
Reg. activities only
Farming/Fishing/Logging only
Mining only
Reg. activities & Farming/Fishing/Logging
Reg. activities & Mining
Farming/Fishing/Logging & Mining
Reg. activities, Farming/Fishing/Logging, Mining
Use the keyword Income.m to enter the amounts related to the cost of capital and the cost of labour for the specified activity in order to determine the eligible Canadian income for that activity.
The following options are applicable for the keyword Income.m.
Cost of capital - Farming/Fishing/Logging
Cost of M&P capital - Farming/Fishing/Logging
Cost of labour - Farming/Fishing/Logging
Cost of M&P labour - Farming/Fishing/Logging
Cost of capital - Mining
Cost of M&P capital - Mining
Cost of labour - Mining
Cost of M&P labour - Mining
Use the keyword Mining-Profits to enter the mining profits under subparagraph 33(7)(2)(i) of the Taxation Act (Ontario).
Enter the gross cost of the each of the capital types in the Capital keyword.
The following options are applicable for the keyword Capital.
Depreciable prop. eligible for CCA Gross cost of depreciable property eligible for CCA is capital cost for tax purposes before any adjustments made e.g. capitalized interest (Fed ITA sect. 21), grants, investment tax credits and sect. 80 debt forgiveness reductions. This property is included in the gross cost of property used to calculate the cost of capital on part 4 of Schedule 27 (T2S(27)).
Timber limits & cutting rights
Immovable wood assets (class 15)
Industrial mineral, mines
SR&ED capital expenditures
Part XVII property All of the above property must be included in the gross cost of property used to calculate the cost of capital on part 4 of Schedule 27 (T2S(27)).
Rental cost for use of property Enter the rental cost for the use of property which would have been included in any of the above categories of capital if this property were owned by the corporation. The amount entered will appear on part 4 of Schedule 27 (T2S(27)).
Share of partnership's capital Enter the corporation's share of partnership's capital here. This amount will appear on part 4 of Schedule 27 (T2S(27)).
Manufacturing & processing capital If no manufacturing & processing capital is entered, the total adjusted amount of capital entered in Capital will be used.
M&P capital - electrical energy corp.
M&P capital - ZETM
Manitoba manufacturing capital costs
Manitoba capital costs
Use [Alt-J] to enter different values for other jurisdictions.
Enter the cost of labour for each of the relevant labour types in the Sal&Wages keyword.
The following options are applicable for the keyword Sal&Wages.
Total salaries & wages paid/payable Enter the total amount of salaries and wages paid or payable during the year here. This amount will appear in part 6 of Schedule 27 (T2S(27)) where the cost of labour is calculated.
Included in gross cost of property Salaries and wages which are included in the gross cost of property entered in Capital are excluded from salaries and wages for purposes of manufacturing and processing labour. This amount will appear on line (F) in part 6 of Schedule 27 (T2S(27)).
Active business outside Canada Salaries and wages which are related to an active business outside Canada are excluded from salaries and wages for purposes of manufacturing and processing labour. This amount will appear on line (G) in part 6 of Schedule 27 (T2S(27)).
Resource profit activities Salaries and wages which are related to activities engaged in for the purpose of earning resource profits (Fed Income Tax Reg. 5202) are excluded from salaries and wages for purposes of manufacturing and processing labour. This amount will appear on line (G) in part 6 of Schedule 27 (T2S(27)).
Incl. in explor. & devel. expenses Salaries and wages which are included in the corporation's exploration and development expenses are excluded from salaries and wages for purposes of manufacturing and processing labour. This amount will appear on line (G) in part 6 of Schedule 27 (T2S(27)).
Partner's share of salaries & wages Add the corporation's share of salaries and wages related to a partnership of which the corporation is a member. This is the gross amount of salaries and wages less the same type of adjustments as made here to the corporation's own salaries and wages. This amount will appear in part 6 of Schedule 27 (T2S(27)).
Manufacturing & processing labour If no manufacturing and processing labour is entered, the total adjusted amount of salaries & wages entered in Sal&Wages will be used.
M&P labour - electrical energy corp.
M&P labour - ZETM
Manitoba manufacturing labour costs
Manitoba labour costs
Use [Alt-J] to enter different values for other jurisdictions.
Enter the cost of other payments for each of the relevant other payment types in the OTHPAYMENTS keyword.
The following options are applicable for the keyword OthPayments.
Paid - non employees, manag., admin. Amounts paid to non employees who performed management and administration functions are included in the cost of labour. This amount will appear on line (J) in part 6 of Schedule 27 (T2S(27)).
Paid - non employees, SR&ED functions Amounts paid to non employees who performed SR&ED functions are included in the cost of labour. This amount will appear on line (J) in part 6 of Schedule 27 (T2S(27)).
Paid - non employees, employee duties Amounts paid to non employees who performed any service or function normally performed by the corporation's employees are included in the cost of labour. This amount will appear on line (J) in part 6 of Schedule 27 (T2S(27)).
Included in gross cost of property Any salaries, wages or other payments entered in the above types or in the Sal&Wages keyword which were also included in the gross cost of property entered in the Capital keyword should be entered here. This amount will be deducted from the cost of labour on line (K) in part 6 of Schedule 27 (T2S(27)).
Active business outside Canada Any salaries, wages or other payments entered in the first three types above or in the Sal&Wages keyword which relate to an active business carried on outside of Canada should be entered here. This amount will be deducted from the cost of labour on line (K) in part 6 of Schedule 27 (T2S(27)).
Resource profit activities Any salaries, wages or other payments entered in the first three types above or in the Sal&Wages keyword which relate to activities engaged in for the purpose of earning resource profits should be entered here. This amount will be deducted from the cost of labour on line (K) in part 6 of Schedule 27 (T2S(27)).
Included in explor. & devel. expenses Any salaries, wages or other payments entered in the first three types above or in the Sal&Wages keyword which are also included in the corporation's Canadian or foreign exploration and development expenses should be entered here. This amount will be deducted from the cost of labour on line (K) in part 6 of Schedule 27 (T2S(27)).
Partner's share of other payments Add the corporation's share of other payments related to a partnership of which the corporation is a member. This is the gross amount of other payments less the same type of adjustments as made here to the corporation's own other payments made. This amount will appear in part 6 on Schedule 27 (T2S(27)) where it will be added to the corporation's cost of labour.
Other payments - manuf. & processing If no manufacturing and processing other payments is entered, the total adjusted amount of other payments entered in OthPayments will be used.
Other payments - M&P electrical energy corp.
Other payments - M&P ZETM
Use [Alt-J] to enter different values for other jurisdictions.
NI-RESOURCE is used to calculate the amount of net resource income excluded from active business income for purposes of manufacturing and processing profits on schedule 27.
The following options are applicable for the keyword NI-Resource.
Resource profits incl. in partner's share Resource profits are, as defined in Fed Income Tax Reg. 1204, from a Canadian active business. Include the corporation's share of resource profits earned by a partnership of which the corporation is a member in the amount entered here. This amount will appear in part 8 of Schedule 27 (T2S(27)).
Additions to income per ITA 59 Amounts added to income under ITA section 59 are added to resource profits in part 8 on Schedule 27 (T2S(27)).
Deductions from income per ITA 65 Amounts deducted from income under ITA section 65 are deducted from resource profits in part 8 on Schedule 27 (T2S(27)).
Income from foreign ore processing Resource profits from the processing in Canada of ore and tar sands from foreign resources are eligible for the manufacturing and processing deduction. This is subject to transitional measures, from 1990 until 1999; see Fed Income Tax Regs 5202 and 5203.
Net resource adjustment per Reg. 5203(3.1)
Refund interest per Reg. 5203(4) Refund interest as defined in Regulation 5203(4).
Use [Alt-J] to enter different values for other jurisdictions.
CCPC's whose paid-up capital is less than $15 million can claim an additional deducion in calculating their net income to reflect the higher transportation costs attributable to the distance of certain regions from Quebec's large urban centres.
Use the keyword QC-AddDed-Transp to indicate whether or not the corporation qualifies for the Quebec additional deduction for transportation costs of remote manufacturing small and medium-sized enterprises (SMEs).
The following options are applicable for the keyword QC-AddDed-Transp.
Allocate the manufacturing and processing capital cost according to the proportion in which the corporation's property is used in each zone, as part of manufacturing and processing activities.
The following options are applicable for the keyword MPCC-Region.
Use the keyword M&PProfitsOV to override manufacturing and processing (M&P) profits eligible for the M&P profits deduction or credit. Use [Alt-J] to enter different values for other jurisdictions.
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PrevYr-Exempt 
Ont-M&PActivity 
Income.m 