Small Business Corporation (SBC) Tax

What is SBC Tax?

SBC status allows qualifying companies to use reduced corporate tax rates and accelerated depreciation.

Think of it like this…

It’s a tax break for genuinely small, active trading companies.

Why does it matter?

  • Can significantly lower tax in early growth years
  • Subject to strict criteria (shareholder, income type, professional services limits)

Best practice

Confirm eligibility annually — one disqualifying factor can remove SBC benefits.

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