Yukon
Yukon
The lower rate of Yukon income tax is 0%, effective January 1, 2021. It was previously 2%.
If the rate changes during the tax year, you have to base your calculation on the number of days in the year that each rate is in effect.
Income eligible for the lower rate is determined using the Yukon business limit of $500,000.
The higher rate of tax is 12%. The higher rate applies to taxable income earned in the Yukon that does not qualify for the small business deduction.
You can use Schedule 443, Yukon Corporation Tax Calculation, to help you calculate the Yukon tax before the application of credits. You do not have to file it with your return. See the schedule for more details.
On line 245 of Schedule 5, enter the amount of tax calculated.
Yukon political contribution tax credit
You can claim a non-refundable tax credit on contributions you made to a registered political party or to a candidate for an election to the Yukon Legislative Assembly.
The Yukon political contribution tax credit for corporations matches the federal political contribution tax credit for individuals on an ongoing basis.
Currently, the annual maximum credit is $650 and is calculated as follows:
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75% of the first $400 contributed
plus
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50% of the next $350 contributed
plus
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33 1/3% of the next $525 contributed
You do not have to file official receipts with your return. However, keep them in case the CRA asks for them later. The CRA can accept photocopies only if the issuer certifies them as true copies.
On line 897 of Schedule 5, enter the total amount of qualifying contributions. On line 675, enter the amount of the credit you are claiming.
Yukon manufacturing and processing profits tax credit
Corporations that have earned taxable income and manufacturing and processing profits in the Yukon are eligible for this non-refundable credit.
The Yukon manufacturing and processing profits tax credit rate is 9.5%. The small business increment is 0%, effective January 1, 2021. It was previously 0.5%.
If the rate changes during the tax year, you have to base your calculation on the number of days in the year that each rate is in effect.
Schedule 440, Yukon Manufacturing and Processing Profits Tax Credit, is a worksheet to calculate the credit. You do not have to file it with your return. For more details, see the schedule.
On line 677 of Schedule 5, enter the amount of the credit you are claiming.
Yukon research and development tax credit
You can claim this credit if you have a permanent establishment in the Yukon at any time in the year and you incurred qualified expenditures in the year for scientific research and experimental development carried on in the Yukon.
The credit is equal to the total of the following amounts:
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15% of eligible expenditures incurred in the year
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5% of eligible expenditures included above paid or payable to Yukon University
The credit is based on the sum of the corporation's qualified expenditures and any eligible repayments.
The credit is fully refundable, but must first be applied against total taxes payable.
To claim the credit, file Schedule 442, Yukon Research and Development Tax Credit, with your return no later than 18 months after the end of the tax year for which you are claiming the credit. For more details, see the schedule.
On line 698 of Schedule 5, enter the amount of the credit you are claiming.
Yukon business carbon price rebate
The federal carbon levy is applied to fuels bought in Yukon. Yukon Carbon Rebate Program returns all carbon levy revenues back to individuals, businesses, First Nations governments, and municipal governments.
The Canada Revenue Agency administers parts of this program in the form of rebates.
Starting in 2023, the Yukon business carbon price rebate also includes the Yukon mining business carbon price rebate.
For a list of eligible Yukon assets and a list of eligible Yukon mining assets, see Schedule 444. The lists are subject to changes. In this case, the Carbon Price Rebate General Regulation takes precedence.
To claim the rebate, file Schedule 444, Yukon Business Carbon Price Rebate, with your return.
On line 699 of Schedule 5, enter the amount of the Yukon general business carbon price rebate you are claiming.
On line 696 of Schedule 5, enter the amount of the Yukon mining business carbon price rebate you are claiming.
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