37 (1) The taxable income earned in Canada for a taxation year of a corporation to which subsection 2 (2) applies shall be computed in accordance with the rules provided in section 115 of the Income Tax Act (Canada) in so far as the said rules apply to corporations, except that for the purposes of this Act, (a) there shall be included, (i) income from property that is real property situated in Canada, or any interest therein, including, (A) amounts that arose from the sale or rental of such property or interest therein, or both, and (B) royalties and similar payments in respect of such property or interest therein, and (ii) timber royalties in respect of a timber resource property or a timber limit situated in Canada; (b) the amount of the income included in accordance with the said rules and clause (a) shall be determined in accordance with this Act; and (c) in the application of paragraph 115 (1) (d) of the Income Tax Act
(Canada), no deduction is permitted with respect to an amount referred to in subparagraph 110 (1) (f) (i) of that Act.  R.S.O. 1990, c. C.40, s. 37 (1); 2004, c. 16, s. 2 (2). Idem (2) For the purpose of subsection (1), the taxable income earned in Canada of a corporation to which clause 2 (2) (b) applies shall not include any amount referred to in paragraph 115 (1) (b) of the Income Tax Act
(Canada) in respect of the disposition of taxable Canadian property where a Tax Treaty or Convention between Canada and another country has determined that no tax is payable by the corporation in respect of the disposition.  R.S.O. 1990, c. C.40, s. 37 (2); 2004, c. 16, s. 2 (2). Idem (3) Where a transitional rule in a prescribed Tax Treaty or Convention between Canada and another country has applied to exclude an amount otherwise included in taxable income earned in Canada for the purposes of the Income Tax Act (Canada) in respect of a disposition of a taxable Canadian property, that rule shall be applied for the purposes of this Act to determine the amount, if any, to be excluded from taxable income earned in Canada in respect of that disposition.  R.S.O. 1990, c. C.40, s. 37 (3); 2004, c. 16, s. 2 (2). Competent authority agreements (4) Section 115.1 of the Income Tax Act (Canada) applies for the purposes of this Act in respect of an agreement made under the provisions of a tax treaty, convention or agreement if a regulation has been made under subsection 1 (8) to modify the provisions of this Act for the purpose of giving effect to a provision of the treaty, convention or agreement.  1996, c. 29, s. 46; 2004, c. 16, s. 2 (2). Same (5) If a regulation has not been made under subsection 1 (8) in respect of a particular treaty, convention or agreement, section 115.1 of the Income Tax Act (Canada) is applicable for the purposes of this Act in respect of an agreement referred to in section 115.1 of that Act that was made under that treaty, convention or agreement only to the extent that, (a) the agreement deals with a provision of that Act, (i) that applies for the purposes of this Act, (ii) that has not been replaced for the purposes of this Act by a provision of this Act, and (iii) in respect of which this Act does not contain provisions that are to apply in addition to the provision; and (b) the agreement does not deal with a disposition of taxable Canadian property to a non-resident individual or a non-resident partnership.  1996, c. 29, s. 46; 2004, c. 16, s. 2 (2); 2005, c. 31, Sched. 5, s. 5. Designated investment services to qualified non-resident (6) For the purposes of this Division and subsection 2 (2), a qualified non-resident is not considered to have a permanent establishment in Ontario at any particular time in a taxation year ending after December 31, 1998 solely because a Canadian service provider provides designated investment services to the qualified non-resident through a permanent establishment of the Canadian service provider in Ontario, if the conditions described in paragraph 115.2 (2) (b) of the Income Tax Act (Canada) are met.  2001, c. 23, s. 30; 2004, c. 16, s. 2 (2). Interpretation (7) For the purposes of subsection (6), “Canadian service provider”, “designated investment services” and “qualified non-resident” have the meanings assigned by subsection 115.2 (1) of the Income Tax Act (Canada).  2001, c. 23, s. 30; 2004, c. 16, s. 2 (2). Section Amendments with date in force (d/m/y) 1996, c. 29, s. 46 - 01/01/1985 2001, c. 23, s. 30 - 01/01/1999 2004, c. 16, s. 2 (2)
- 01/01/2004 2005, c. 31, Sched. 5, s. 5 - 15/12/2005 Division D.1 — Tax Incentive for Investing in Ontario Jobs and Opportunity Bonds