jswizzle3737/ontario_laws_and_regs huggingface dataset:
2 This Act applies only in respect of taxation years ending after December 31, 2008.  2007, c. 11, Sched. A, s. 2. Part II   Individuals — Income and other Personal Taxes Division A — Interpretation and Liability for Tax
4 (1) The following individuals shall pay taxes in accordance with this Part for a taxation year ending after December 31, 2008: 1. Every individual who is resident in Ontario on the last day of the year and who has no income earned outside Ontario for the year. 2. Every individual who is resident in Ontario on the last day of the year and who has income earned outside Ontario for the year. 3. Every individual who is not resident in Ontario on the last day of the year but who has income earned in Ontario for the year.  2007, c. 11, Sched. A, s. 4 (1). Tax exemption (2) Despite any other provision of this Part, an individual who is exempt from tax under Part I of the Federal Act for a period of time by reason of section 149 of that Act is exempt, to the same extent and for the same period of time, from taxes imposed by this Part, other than taxes under subsection 5 (2).  2007, c. 11, Sched. A, s. 4 (2). Taxes payable (3) An individual’s tax payable under this Part for a taxation year is the sum of, (a) the individual’s tax payable under Division B for the year; and (b) the individual’s tax payable under Division C for the year.  2007, c. 11, Sched. A, s. 4 (3). If individual is a bankrupt (4) Subsection 128 (2) of the Federal Act applies for the purposes of this Act.  2009, c. 18, Sched. 28, s. 1. Section Amendments with date in force (d/m/y) 2009, c. 18, Sched. 28, s. 1 - 01/01/2009 Division B — Personal Income Tax Subdivision a — Tax Calculation
5 (1) The amount of an individual’s personal income tax payable under this Division for a taxation year is the amount determined as follows: 1. Determine the amount, if any, by which the individual’s basic personal income tax for the year, as determined under this subdivision, exceeds the sum of all non-refundable tax credits under subdivision b that are deducted by the individual for the year. 2. Determine the amount of the individual’s additional tax, if any, payable for the year under subdivision c. 3. Add the amounts determined under paragraphs 1 and 2. 4. Determine the amount, if any, by which the amount determined under paragraph 3 exceeds the sum of all tax credits under subdivision d that are deducted by the individual for the year. 5. Add the following amounts: i. the amount, if any, determined under paragraph 4, ii. the amount, if any, of the individual’s surtax for the year, as determined under subdivision e, and iii. the amount of tax, if any, determined under subdivision f in respect of the individual for the year. 6. Determine the amount, if any, by which the total determined under paragraph 5 exceeds the tax credit under subdivision g deducted by the individual for the year. 7. Add the following amounts: i. the amount, if any, determined under paragraph 6, and ii. the amount of the individual’s additional tax, if any, payable for the year under subdivision h. 8. The individual’s personal income tax payable under this Division for the year is the amount, if any, by which the total determined under paragraph 7 exceeds the sum of all tax credits under subdivision i deducted by the individual for the year. 2007, c. 11, Sched. A, s. 5 (1); 2016, c. 5, Sched. 28, s. 1. Tax payable, qualifying environmental trusts (2) Despite subsection (1), the amount of tax payable under this Division for a taxation year by an individual that is a qualifying environmental trust at the end of the year is the amount determined by multiplying the amount of the trust’s income for the year for the purposes of Part XII.4 of the Federal Act by the percentage that would be the basic rate of tax for a corporation that has the same taxation year.  2007, c. 11, Sched. A, s. 5 (2). Section Amendments with date in force (d/m/y) 2016, c. 5, Sched. 28, s. 1 - 19/04/2016
6 (1) The basic personal income tax for a taxation year of an individual ending after December 31, 2013 is the sum of the following amounts: 1. The amount calculated by multiplying the lowest tax rate for the year by the portion of the individual’s tax base for the year that does not exceed $40,120. 2. The amount calculated by multiplying the second-lowest tax rate for the year by the amount by which the individual’s tax base for the year exceeds $40,120 and does not exceed $80,242. 3. The amount calculated by multiplying the middle tax rate for the year by the amount by which the individual’s tax base for the year exceeds $80,242 and does not exceed $150,000. 4. The amount calculated by multiplying the second-highest tax rate for the year by the amount by which the individual’s tax base for the year exceeds $150,000 and does not exceed $220,000. 5. The amount calculated by multiplying the highest tax rate for the year by the amount by which the individual’s tax base for the year exceeds $220,000. 2014, c. 8, s. 2. Resident with income earned outside Ontario or non-resident (2) Despite subsection (1), the basic personal income tax for a taxation year of an individual described in paragraph 2 or 3 of subsection 4 (1) is the amount that would otherwise be determined under subsection (1) to be the individual’s basic personal income tax for the year multiplied by the individual’s Ontario allocation factor for the year.  2007, c. 11, Sched. A, s. 6 (2). Section Amendments with date in force (d/m/y) 2009, c. 18, Sched. 28, s. 2 - 01/01/2009 2012, c. 9, s. 2
- 01.01/2012 2014, c. 8, s. 2
- 01/01/2014
7 (1) Despite section 6, the basic personal income tax for a taxation year ending before January 1, 2016 of an individual that is an inter vivos trust to which subsection 122 (1) of the Federal Act applies is calculated by multiplying the trust’s tax base for the year by the highest tax rate for the year.  2007, c. 11, Sched. A, s. 7 (1); 2015, c. 20, Sched. 40, s. 3 (1). Inter vivos trust with income earned outside Ontario or non-resident (2) Despite section 6 and subsection (1), the basic personal income tax for a taxation year ending before January 1, 2016 of an inter vivos trust that is an individual described in paragraph 2 or 3 of subsection 4 (1) is the amount that would otherwise be determined under subsection (1) to be the trust’s basic personal income tax for the year multiplied by the trust’s Ontario allocation factor for the year.  2007, c. 11, Sched. A, s. 7 (2); 2015, c. 20, Sched. 40, s. 3 (2). Section Amendments with date in force (d/m/y) 2015, c. 20, Sched. 40, s. 3 (1, 2) - 01/01/2016
7.1 (1) Despite section 6, the basic personal income tax for a taxation year ending after December 31, 2015 of an individual that is a trust, other than a graduated rate estate or a qualified disability trust, is the total of, (a) the amount calculated by multiplying the trust’s tax base for the year by the top marginal tax rate for the year; and (b) the amount determined under subsection (3), if the trust is a trust to which subsection 122 (2) of the Federal Act applies. 2015, c. 20, Sched. 40, s. 4. Trust with income earned outside Ontario or non-resident, 2016 and subsequent taxation years (2) Despite section 6 and subsection (1), the basic personal income tax for a taxation year ending after December 31, 2015 of a trust, other than a graduated rate estate or a qualified disability trust, that is an individual described in paragraph 2 or 3 of subsection 4 (1), is the total of, (a) the amount that would otherwise be determined under clause (1) (a), multiplied by the trust’s Ontario allocation factor for the year; and (b) the amount determined under subsection (3), if the trust is a trust to which subsection 122 (2) of the Federal Act applies. 2015, c. 20, Sched. 40, s. 4. Where subsection 122 (2) of the Federal Act applies (3) The amount determined for the purposes of clauses (1) (b) and (2) (b) is the amount equal to the tax that would be payable under paragraph 122 (1) (c) of the Federal Act if, (a) “this Part” in subparagraph (i) in the description of A were read as a reference to Division B of Part II of this Act; (b) “the highest individual percentage” in subparagraph (i) in the description of A were read as a reference to “the top marginal tax rate”; and (c) “this Part” in the description of B were read as a reference to Division B of Part II of this Act. 2015, c. 20, Sched. 40, s. 4; 2016, c. 37, Sched. 25, s. 1. Section Amendments with date in force (d/m/y) 2015, c. 20, Sched. 40, s. 4 - 01/01/2016 2016, c. 37, Sched. 25, s. 1 - 01/01/2016 Subdivision b — Non-Refundable Tax credits
10 Despite section 9, an individual described in paragraph 2 or 3 of subsection 4 (1) is entitled to deduct, in computing tax payable under this Division for a taxation year, an amount in respect of each tax credit described in subsections 9 (2) to (9) and (12) to (22) not exceeding the amount calculated using the formula, A × B in which, “A” is the amount of the tax credit determined without reference to this section, and subsections 6 (2), 7 (2) and 7.1 (2), and “B” is the individual’s Ontario allocation factor for the year. 2007, c. 11, Sched. A, s. 10; 2015, c. 20, Sched. 40, s. 7. Section Amendments with date in force (d/m/y) 2015, c. 20, Sched. 40, s. 7 - 01/01/2016 Subdivision c — Additional Taxes
11 (1) This section applies if the tax payable by an individual under Part I of the Federal Act for a taxation year that ends before January 1, 2016 is determined under section 127.5 of that Act. 2016, c. 5, Sched. 28, s. 3 (1). Same (2) Every individual to whom this section applies for a taxation year that ends before January 1, 2016 shall pay an additional tax for the year calculated using the formula, (A – B) × C × D in which, “A” is the amount, if any, by which the individual’s minimum amount for the year as determined under section 127.51 of the Federal Act exceeds the special foreign tax credit of the individual for the year, as determined under subsection 127.54 (2) of the Federal Act, “B” is the amount that, but for section 120 of the Federal Act, would be determined under Division E of Part I of the Federal Act to be the individual’s tax payable under the Federal Act for the year, “C” is the percentage calculated by dividing the lowest tax rate for the year by the percentage in paragraph 117 (2) (a) of the Federal Act, and “D” is the individual’s Ontario allocation factor for the year. 2007, c. 11, Sched. A, s. 11 (2); 2016, c. 5, Sched. 28, s. 3 (2). Section Amendments with date in force (d/m/y) 2016, c. 5, Sched. 28, s. 3 (1, 2) - 19/04/2016
12 (1) This section applies to an individual for a taxation year ending before January 1, 2016 if, (a) the individual is resident in Ontario on the last day of the taxation year; (b) the individual is a specified individual in relation to the taxation year; and (c) the individual is liable to pay an amount of tax under subsection 120.4 (2) of the Federal Act for the taxation year.  2007, c. 11, Sched. A, s. 12 (1); 2016, c. 5, Sched. 28, s. 4 (1). Additional tax (2) Every individual to whom this section applies for a taxation year shall pay an additional tax for the year calculated by multiplying the highest tax rate for the year by the individual’s split income for the year.  2007, c. 11, Sched. A, s. 12 (2). Minimum tax amount (3) Despite any other provision of this Part, if an individual is a specified individual in relation to a taxation year the tax payable under this Division for the year by the individual shall not be less than the amount, if any, by which “A” exceeds “B” where, “A” is the amount required to be added under subsection (2), and “B” is the total of all amounts each of which is an amount, (a) that may be deducted under section 13, 20.1 or 21 in computing the individual’s tax payable under this Division for the taxation year, and (b) that can reasonably be considered to be in respect of an amount included in computing the individual’s split income for the taxation year. 2007, c. 11, Sched. A, s. 12 (3); 2014, c. 7, Sched. 29, s. 1; 2016, c. 5, Sched. 28, s. 4 (2). Section Amendments with date in force (d/m/y) 2014, c. 7, Sched. 29, s. 1 - 01/01/2014 2016, c. 5, Sched. 28, s. 4 (1, 2) - 19/04/2016
12.1 (1) This section applies to an individual for a taxation year ending after December 31, 2015 if, (a) the individual is resident in Ontario on the last day of the taxation year; (b) the individual is a specified individual in relation to the taxation year; and (c) the individual is liable to pay an amount of tax under subsection 120.4 (2) of the Federal Act for the taxation year. 2016, c. 5, Sched. 28, s. 5. Additional tax (2) Every individual to whom this section applies for a taxation year shall pay an additional tax for the year calculated by multiplying the top marginal tax rate for the year by the individual’s split income for the year. 2016, c. 5, Sched. 28, s. 5. Minimum tax amount (3) Despite any other provision of this Part, if an individual is a specified individual in relation to a taxation year ending before January 1, 2018, the tax payable under this Division for the year by the individual shall not be less than the amount, if any, by which “A” exceeds “B” where, “A” is the amount required to be added under subsection (2), and “B” is the total of all amounts, each of which is an amount, (a) that may be deducted under section 13, 19.1, 20.1 or 21 in computing the individual’s tax payable under this Division for the taxation year, and (b) that can reasonably be considered to be in respect of an amount included in computing the individual’s split income for the taxation year. 2016, c. 5, Sched. 28, s. 5; 2018, c. 17, Sched. 42, s. 2 (1). Minimum tax amount, 2018 and subsequent taxation years (4) Despite any other provision of this Part, if an individual is a specified individual in relation to a taxation year ending after December 31, 2017, the tax payable under this Division for the year by the individual shall not be less than the amount, if any, by which “A” exceeds “B” where, “A” is the amount required to be added under subsection (2), and “B” is the sum of “C” and “D” where, “C” is the total of all amounts, each of which is an amount that, (a) may be deducted under section 19.1 or 21 in computing the individual’s tax payable under this Division for the year, and (b) can reasonably be considered to be in respect of an amount included in computing the individual’s split income for the year, and “D” is the total of all amounts, each of which is an amount deducted under subsection 9 (12) or (13) in computing the individual’s tax payable under this Division for the year. 2018, c. 17, Sched. 42, s. 2 (2). Section Amendments with date in force (d/m/y) 2016, c. 5, Sched. 28, s. 5 - 19/04/2016 2018, c. 17, Sched. 42, s. 2 (1, 2) - 06/12/2018 Subdivision d — Additional Tax Credits before Surtax
13 (1) In determining the amount of a tax payable under this Division for a taxation year ending before January 1, 2014, an individual who is resident in Ontario on the last day of the year may deduct a dividend tax credit equal to the sum of, (a) for a taxation year ending before January 1, 2010, 38.4828 per cent of the amount determined in respect of the individual for the year under paragraph 121 (a) of the Federal Act; (a.1) for a taxation year ending after December 31, 2009 and before January 1, 2014, 33.75 per cent of the amount determined in respect of the individual for the year under paragraph 121 (a) of the Federal Act; and (b) for a taxation year ending before January 1, 2014, the specified percentage of the amount determined in respect of the individual for the year under paragraph 121 (b) of the Federal Act.  2007, c. 11, Sched. A, s. 13 (1); 2009, c. 34, Sched. U, s. 2 (1); 2014, c. 7, Sched. 29, s. 2 (1-3). Specified percentage (2) For the purposes of clause (1) (b), the specified percentage is, (a) 39.0182 per cent for a taxation year ending before January 1, 2010; (b) 35.6073 per cent for a taxation year ending after December 31, 2009 and before January 1, 2011; (c) 38.9403 per cent for a taxation year ending after December 31, 2010 and before January 1, 2012; and (d) 42.6105 per cent for a taxation year ending after December 31, 2011 and before January 1, 2014.  2008, c. 19, Sched. U, s. 1; 2009, c. 34, Sched. U, s. 2 (2-4); 2014, c. 7, Sched. 29, s. 2 (4). Section Amendments with date in force (d/m/y) 2008, c. 19, Sched. U, s. 1 - 27/11/2008 2009, c. 34, Sched. U, s. 2 (1-4) - 15/12/2009 2014, c. 7, Sched. 29, s. 2 (1-4) - 01/01/2014
14 In determining the amount of tax payable under this Division for a taxation year, an individual who is resident in Ontario on the last day of the year may deduct a tax credit for overseas employment calculated using the formula, A/B × C in which, “A” is 11.16 per cent, “B” is the percentage in paragraph 117 (2) (d) of the Federal Act, and “C” is the amount deductible by the individual for the year under section 122.3 of the Federal Act. 2007, c. 11, Sched. A, s. 14; 2009, c. 34, Sched. U, s. 3; 2012, c. 9, s. 4. Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. U, s. 3 - 01/01/2009 2012, c. 9, s. 4
- 01/01/2012
15 (1) In determining the amount of tax payable under this Division for a taxation year, an individual may deduct a tax credit in respect of minimum tax not exceeding the lesser of, (a) the amount of the individual’s basic personal income tax for the year, less all amounts deductible for the year under subdivision b and sections 13, 14, 19.1 and 20.1; and (b) the amount of the individual’s carryforward amount for the year in respect of minimum tax, as determined under subsection (3). 2007, c. 11, Sched. A, s. 15 (1); 2008, c. 7, Sched. S, s. 3; 2014, c. 7, Sched. 29, s. 3; 2016, c. 5, Sched. 28, s. 6 (1); 2023, c. 21, Sched. 13, s. 1 (1). Restriction (2) No amount may be deducted by an individual for a taxation year under this section if the individual is required to pay an amount under section 11 or 19.2 for the same year. 2007, c. 11, Sched. A, s. 15 (2); 2016, c. 5, Sched. 28, s. 6 (2). Carryforward amount (3) An individual’s carryforward amount for a taxation year in respect of minimum tax is the amount calculated using the formula, A × B × C in which, “A” is the amount deducted under section 120.2 of the Federal Act for the year, “B” is the amount determined by dividing “D” by “E” where, “D” is the lowest tax rate for the year, and “E” is the appropriate percentage for the year under the Federal Act, and “C” is the Ontario allocation factor in respect of the individual for the year. 2023, c. 21, Sched. 13, s. 1 (2). Section Amendments with date in force (d/m/y) 2008, c. 7, Sched. S, s. 3 - 01/01/2009 2014, c. 7, Sched. 29, s. 3 - 01/01/2014 2016, c. 5, Sched. 28, s. 6 (1, 2) - 19/04/2016 2023, c. 21, Sched. 13, s. 1 (1, 2) - 01/01/2009 Subdivision e — Ontario Surtax
16 (1) Subject to subsections (4) and (5), the amount of surtax for a taxation year of an individual is the sum of, (a) 20 per cent of the amount, if any, by which the gross tax amount of the individual for the year exceeds, (i) $4,257 if the year ends before January 1, 2010, or (ii) $4,006 if the year ends after December 31, 2009; and (b) 36 per cent of the amount, if any, by which the gross tax amount of the individual for the year exceeds, (i) $5,370 if the year ends before January 1, 2010, or (ii) $5,127 if the year ends after December 31, 2009.  2009, c. 34, Sched. U, s. 4; 2015, c. 20, Sched. 40, s. 8 (1); 2017, c. 8, Sched. 30, s. 1 (1). Gross tax amount (2) For the purposes of subsection (1) and subject to subsection (3), the gross tax amount for a taxation year of an individual is the amount of tax that would be payable by the individual for the year under this Division if that amount were determined without reference to this section and sections 12.1, 17, 18, 19, 19.1, 19.2, 20, 20.1, 21, 21.1 and 22. 2007, c. 11, Sched. A, s. 16 (2); 2013, c. 7, s. 8 (1); 2016, c. 5, Sched. 28, s. 7; 2017, c. 8, Sched. 30, s. 1 (2); 2020, c. 36, Sched. 43, s. 2 (1). Same (2.1) For a taxation year ending after August 14, 2014 and before January 1, 2019, subsection (2) is deemed to be read without reference to section 103.1.2. 2020, c. 36, Sched. 43, s. 2 (2). Gross tax amount, resident with income earned outside Ontario or non-resident (3) The gross tax amount for a taxation year of an individual described in paragraph 2 or 3 of subsection 4 (1) is the amount that would be determined under subsection (2) to be the individual’s gross tax amount for the year if the individual’s Ontario allocation factor for the year were 1. 2017, c. 8, Sched. 30, s. 1 (3). Surtax, resident with income earned outside Ontario or non-resident (4) The amount of surtax for a taxation year of an individual described in paragraph 2 or 3 of subsection 4 (1) is the amount that would otherwise be determined under subsection (1) to be the surtax for the year of the individual multiplied by the individual’s Ontario allocation factor for the year. 2017, c. 8, Sched. 30, s. 1 (3). Exception (5) The amount of surtax for a taxation year of an individual that is a trust to which subsection 7.1 (1) or (2) applies is nil. 2017, c. 8, Sched. 30, s. 1 (3). Section Amendments with date in force (d/m/y) 2009, c. 18, Sched. 28, s. 5 - 01/01/2009; 2009, c. 34, Sched. U, s. 4 - 15/12/2009 2013, c. 7, s. 8 (1)
- 15/08/2014 2015, c. 20, Sched. 40, s. 8 (1, 2) - 01/01/2016 2016, c. 5, Sched. 28, s. 7 - 19/04/2016 2017, c. 8, Sched. 30, s. 1 (1-3) - 01/01/2017 2020, c. 36, Sched. 43, s. 2 (1) - 01/01/2019; 2020, c. 36, Sched. 43, s. 2 (2) - 08/12/2020 Subdivision f — Averaging and Adjustments
17 There shall be added, in computing the tax payable for a taxation year under this Division by an individual who resides in Ontario on the last day of the taxation year, an amount equal to 38.5 per cent of the amount added under section 120.31 of the Federal Act in computing the individual’s tax payable for the year under the Federal Act.  2007, c. 11, Sched. A, s. 17.
18 There shall be added, in computing the tax payable for a taxation year under this Division by an individual who resides in Ontario on the last day of the taxation year, an amount equal to 38.5 per cent of the amount added under section 120.3 of the Federal Act in computing the individual’s tax payable under the Federal Act for the year.  2007, c. 11, Sched. A, s. 18.
19 There shall be added, in computing the tax payable under this Division for a taxation year by an individual who resides in Ontario on the last day of the taxation year, an amount equal to 38.5 per cent of the amount of the individual’s tax payable for the year under section 40 of the Income Tax Application Rules (Canada).  2007, c. 11, Sched. A, s. 19. Subdivision g — Ontario Dividend Tax Credit, 2016 and subsequent taxation years
19.1 In determining the amount of tax payable under this Division for a taxation year ending after December 31, 2015, an individual who is resident in Ontario on the last day of the year may deduct an Ontario dividend tax credit under this section equal to the sum of, (a) 29.5 per cent of any amount required under subparagraph 82 (1) (b) (i) of the Federal Act to be included in computing the individual’s income for the year, if the year ends before January 1, 2018; (a.1) 23.8257 per cent of any amount required under subparagraph 82 (1) (b) (i) of the Federal Act to be included in computing the individual’s income for the year, if the year ends after December 31, 2017 and before January 1, 2019; (a.2) 25.195 per cent of any amount required under subparagraph 82 (1) (b) (i) of the Federal Act to be included in computing the individual’s income for the year, if the year ends after December 31, 2018 and before January 1, 2020; (a.3) 22.895 per cent of any amount required under subparagraph 82 (1) (b) (i) of the Federal Act to be included in computing the individual’s income for the year, if the year ends after December 31, 2019; and (b) 36.3158 per cent of any amount required under subparagraph 82 (1) (b) (ii) of the Federal Act to be included in computing the individual’s income for the year. 2016, c. 5, Sched. 28, s. 8; 2017, c. 34, Sched. 40, s. 3; 2018, c. 17, Sched. 42, s. 3; 2019, c. 15, Sched. 38, s. 1. Section Amendments with date in force (d/m/y) 2016, c. 5, Sched. 28, s. 8 - 19/04/2016 2017, c. 34, Sched. 40, s. 3 - 14/12/2017 2018, c. 17, Sched. 42, s. 3 - 06/12/2018 2019, c. 15, Sched. 38, s. 1 - 01/01/2020 Subdivision h — Minimum Tax, 2016 and subsequent taxation years
19.2 (1) This section applies if the tax payable by an individual under Part I of the Federal Act for a taxation year ending after December 31, 2015 is determined under section 127.5 of that Act. 2016, c. 5, Sched. 28, s. 8. Same (2) Every individual to whom this section applies for a taxation year ending after December 31, 2015 shall pay an additional tax for the year equal to the sum of the individual’s basic additional tax for the year and the individual’s surtax on additional tax for the year. 2016, c. 5, Sched. 28, s. 8. Basic additional tax (3) An individual’s basic additional tax for a taxation year is equal to the amount calculated using the formula, (A – B) × C × D in which, “A” is the amount, if any, by which the individual’s minimum amount for the year as determined under section 127.51 of the Federal Act exceeds the special foreign tax credit of the individual for the year, as determined under subsection 127.54 (2) of the Federal Act, “B” is the amount that, but for section 120 of the Federal Act, would be determined under Division E of Part I of the Federal Act to be the individual’s tax payable under the Federal Act for the year, “C” is the percentage calculated by dividing the lowest tax rate for the year by the percentage in paragraph 117 (2) (a) of the Federal Act, and “D” is the individual’s Ontario allocation factor for the year. 2016, c. 5, Sched. 28, s. 8. Surtax on additional tax (4) Subject to subsection (6), an individual’s surtax on additional tax for a taxation year is equal to the amount by which “E” exceeds “F”, where, “E” is equal to the individual’s allocation factor for the year multiplied by the sum of, (a) 20 per cent of the amount, if any, by which the gross tax amount of the individual for the year exceeds $4,006, and (b) 36 per cent of the amount, if any, by which the gross tax amount of the individual for the year exceeds $5,127, and “F” is the amount of the individual’s surtax for the year as determined under section 16. 2016, c. 5, Sched. 28, s. 8; 2017, c. 8, Sched. 30, s. 2 (1). Gross tax amount (5) The gross tax amount of an individual for a taxation year for the purposes of subsection (4) is the sum of, (a) the amount that would be determined under subsection (3) to be the individual’s basic additional tax if the individual’s Ontario allocation factor for the year were 1; and (b) the individual’s gross tax amount for the year determined under subsection 16 (2) or (3), as applicable. 2017, c. 8, Sched. 30, s. 2 (2). Exception (6) The surtax on additional tax for a taxation year of an individual that is a trust to which subsection 7.1 (1) or (2) applies is equal to 56 per cent of the amount of the individual’s basic additional tax. 2016, c. 5, Sched. 28, s. 8. Section Amendments with date in force (d/m/y) 2016, c. 5, Sched. 28, s. 8 - 19/04/2016 2017, c. 8, Sched. 30, s. 2 (1, 2) - 01/01/2017 Subdivision i — Additional Tax Credits after Surtax
20.1 In determining the amount of tax payable under this Division for a taxation year ending after December 31, 2013 and before January 1, 2016, an individual who is resident in Ontario on the last day of the year may deduct an Ontario dividend tax credit under this section equal to the sum of, (a) 22.5 per cent of any amount required under subparagraph 82 (1) (b) (i) of the Federal Act to be included in computing the individual’s income for the year in respect of dividends paid before January 1, 2014; (b) 29.5 per cent of any amount required under subparagraph 82 (1) (b) (i) of the Federal Act to be included in computing the individual’s income for the year in respect of dividends paid after December 31, 2013; and (c) 36.3158 per cent of any amount required under subparagraph 82 (1) (b) (ii) of the Federal Act to be included in computing the individual’s income for the year. 2014, c. 7, Sched. 29, s. 4; 2016, c. 5, Sched. 28, s. 10. Section Amendments with date in force (d/m/y) 2014, c. 7, Sched. 29, s. 4 - 01/01/2014 2016, c. 5, Sched. 28, s. 10 - 01/01/2016
25 The Public Accounts for each fiscal year shall include information about the use of the revenue from the Ontario Health Premium.  2007, c. 11, Sched. A, s. 25. PART III   Corporate Tax Division A — General Interpretation
27 (1) Every corporation that has a permanent establishment in Ontario at any time in a taxation year shall, at the time and in the manner required by this Act, pay to the Crown in right of Ontario the taxes for the taxation year imposed by this Part.  2007, c. 11, Sched. A, s. 27 (1). Exception (2) Despite subsection (1), if a corporation is exempt from tax by reason of section 149 of the Federal Act, the following rules apply: 1. The corporation is exempt from tax determined under Division B for the same period of time and to the same extent that it is exempt from tax imposed under Part I of the Federal Act by reason of that section. 2. The corporation is exempt from taxes determined under Divisions C, D and E for the same period of time it is totally exempt from tax imposed under Part I of the Federal Act by reason of that section.  2007, c. 11, Sched. A, s. 27 (2).
28 Subsection 128 (1) of the Federal Act applies for the purposes of this Act.  2007, c. 11, Sched. A, s. 28. Division B — Corporate Income Tax Subdivision a — General Corporate Income Tax, Tax Credits and Surtax
29 (1) Every corporation that has a permanent establishment in Ontario at any time in a taxation year shall, in determining the amount of its tax payable under this Division for the taxation year, add the amount of its basic income tax for the year, calculated by multiplying its Ontario taxable income for the year by its basic rate of tax.  2007, c. 11, Sched. A, s. 29 (1). Basic rate of tax (2) A corporation’s basic rate of tax for a taxation year is the sum of, (a) 14 per cent multiplied by the ratio of the number of days in the taxation year that are before July 1, 2010 to the total number of days in the taxation year; (b) 12 per cent multiplied by the ratio of the number of days in the taxation year that are after June 30, 2010 and before July 1, 2011 to the total number of days in the taxation year; (c) 11.5 per cent multiplied by the ratio of the number of days in the taxation year that are after June 30, 2011 to the total number of days in the taxation year. (d), (e)  Repealed:  2012, c. 9, s. 6. 2009, c. 34, Sched. U, s. 6; 2010, c. 1, Sched. 29, s. 3; 2012, c. 9, s. 6. Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. U, s. 6 - 15/12/2009 2010, c. 1, Sched. 29, s. 3 - 15/12/2009 2012, c. 9, s. 6
- 01/07/2012
30 If at any time a corporation becomes or ceases to be exempt from tax under Part I of the Federal Act on its taxable income otherwise than by reason of paragraph 149 (1) (t) of the Federal Act, the corporation is deemed to be a new corporation whose first taxation year begins at that time for the purposes of applying this Division to the corporation to determine the amount, if any, deductible in computing the amount of the corporation’s tax payable under this Division.  2007, c. 11, Sched. A, s. 30.
34 (1) A corporation that is resident in Canada throughout a taxation year and has foreign investment income for the year may, in computing its tax payable under this Division for the year, deduct a foreign tax credit equal to the lesser of,  (a) the amount calculated under subsection (2) for the year; and (b) the amount calculated under subsection (3) for the year.  2007, c. 11, Sched. A, s. 34 (1). Same (2) For the purposes of clause (1) (a), the amount is determined by multiplying the corporation’s Ontario domestic factor for the taxation year by the amount, if any, by which “A” exceeds “B” where, “A” is the portion of the non-business-income tax paid for the year by the corporation to the government of a country other than Canada that relates to foreign investment income of the corporation for the year that is not from a share of the capital stock of a foreign affiliate of the corporation, and “B” is the amount deductible by the corporation in respect of the foreign investment income for the year under subsection 126 (1) of the Federal Act.  2007, c. 11, Sched. A, s. 34 (2); 2008, c. 7, Sched. S, s. 8 (1). Same (3) For the purposes of clause (1) (b), the amount is calculated using the formula, C × D × E in which, “C”   is the portion of the corporation’s foreign investment income for the taxation year described in the definition of “A” in subsection (2), “D”   is the corporation’s basic rate of tax for the year, and “E”   is the corporation’s Ontario allocation factor for the year. 2007, c. 11, Sched. A, s. 34 (3). Authorized foreign bank (3.1) For the purposes of this section, an authorized foreign bank is deemed to be resident in Canada for a taxation year with respect to its Canadian banking business for the year and may deduct a foreign tax credit under subsection (1) that is calculated, (a) as if the reference in the definition of “A” in subsection (2) to “foreign investment income of the corporation” were a reference to only that part of the bank’s foreign investment income that relates to its Canadian banking business; and (b) as if the references to “country other than Canada” in the definition of “A” in subsection (2) and in the definition of “foreign investment income” in subsection (5) were references to a country that is neither Canada nor any country in which the bank was resident at any time in the year.  2008, c. 7, Sched. S, s. 8 (2). Application of Federal Act (4) Subsection 126 (6) of the Federal Act and the definition of “non-business income tax” in subsection 126 (7) of that Act apply for the purposes of this section.  2007, c. 11, Sched. A, s. 34 (4). Definition (5) In this section, “foreign investment income” means, in respect of a corporation, income from sources in a country other than Canada in respect of which the corporation paid non-business-income tax to the government of that country.  2007, c. 11, Sched. A, s. 34 (5). Section Amendments with date in force (d/m/y) 2008, c. 7, Sched. S, s. 8 (1, 2) - 01/01/2008
35 (1) A corporation that was a credit union throughout a taxation year may, in computing its tax payable under this Division for the year, deduct the amount, if any, calculated using the formula,  A × (B – C) × D in which, “A” is the small business deduction rate for the corporation for the year, “B”   is the lesser of, (a) the corporation’s taxable income or taxable income earned in Canada, as the case may be, for the year, and (b) the amount, if any, by which 4/3 of its maximum cumulative reserve at the end of the year, as determined under section 137 of the Federal Act, exceeds the amount described in subsection (2), “C” is, (a) the corporation’s Ontario adjusted small business income for the year, as determined under subsection 33 (6), if the corporation is a Canadian-controlled private corporation throughout the year, or (b) nil, in any other case, and “D” is the corporation’s Ontario domestic factor for the year. 2007, c. 11, Sched. A, s. 35; 2017, c. 34, Sched. 40, s. 7 (1). Same (2) For the purposes of clause (b) of the definition of “B” in subsection (1), the amount is the amount that would be the corporation’s preferred-rate amount at the end of its previous taxation year under subsection 137 (4.3) of the Federal Act if paragraph (f) in the description of C in subsection 137 (3) of the Federal Act were read as “the proportion of 100% that the number of days in the year that are after December 31, 2016 is of the number of days in the year”. 2017, c. 34, Sched. 40, s. 7 (2). Section Amendments with date in force (d/m/y) 2017, c. 34, Sched. 40, s. 7 (1, 2) - 14/12/2017 Subdivision b — Crown Royalties and Resource Tax Credit
36 (1) Every corporation that has a permanent establishment in Ontario at any time in a taxation year ending before April 23, 2015 shall, in computing the amount of its tax payable under this Division for the year, add the amount calculated using the formula, (A – B) × C × D in which, “A” is the amount of the corporation’s adjusted Crown royalties for the year, “B” is the corporation’s notional resource allowance for the year, “C” is the corporation’s basic rate of tax for the year, and “D” is the corporation’s Ontario allocation factor for the year. 2007, c. 11, Sched. A, s. 36 (1); 2015, c. 20, Sched. 40, s. 9 (1). Transition, April 23, 2015 (1.1) Every corporation that has a permanent establishment in Ontario at any time in a taxation year that includes April 23, 2015 shall, in computing the amount of its tax payable under this Division for the year, add the amount calculated using the formula, H × J/K in which, “H” is the amount that would be calculated under subsection (1) in respect of the corporation if that subsection applied in the taxation year, “J” is the number of days in the taxation year that are before April 24, 2015, and “K” is the total number of days in the taxation year. 2015, c. 20, Sched. 40, s. 9 (2). Adjusted Crown royalties (2) The amount of a corporation’s adjusted Crown royalties for a taxation year is the amount, if any, by which “E” exceeds “F” where, “E” is the sum of, (a) all additional amounts that, if the Corporations Tax Act were to apply for the year, would be added in computing the corporation’s income for the year for the purposes of that Act because of the application of any of subsections 11.0.1 (2), (3) or (5) or 26 (4.1), paragraph 1 of subsection 26 (7) or subsection 31 (1.2) of that Act, and (b) all amounts each of which would, if the Corporations Tax Act were to apply for the year, be a reduction in the corporation’s share of a loss from a partnership in the year for the purposes of that Act because of the application of subsection 31 (1.2) of that Act, and “F” is the sum of all amounts each of which would, if the Corporations Tax Act were to apply for the year, be a reduction in the amount added in computing the corporation’s income for the year for the purposes of that Act because of the application of paragraph 2 of subsection 26 (7) of that Act.  2007, c. 11, Sched. A, s. 36 (2). Notional resource allowance (3) A corporation’s notional resource allowance for a taxation year shall be determined in the prescribed manner.  2007, c. 11, Sched. A, s. 36 (3). Section Amendments with date in force (d/m/y) 2015, c. 20, Sched. 40, s. 9 (1, 2) - 04/06/2015
39 (1) A corporation may, in computing the amount of its tax payable under this Division for a taxation year, deduct an amount in respect of its Ontario research and development tax credit at the end of the year not exceeding the sum of, (a) the lesser of, (i) the amount that would be the corporation’s Ontario research and development tax credit at the end of the year if, (A) clauses (c), (d) and (e) of the definition of “A” in subsection 38 (2) were read without reference to the expression “or the three taxation years following”, (B) clause (a) of the definition of “B” in subsection 38 (2) were read without reference to the expression “or the two taxation years following”, and (C) the definition of “B” in subsection 38 (2) were read without clause (c), and (ii) the corporation’s tax payable under this Division for the year, determined without reference to this section and section 53; and (b) the lesser of, (i) the amount, if any, by which the amount determined for the year under subclause (a) (ii) exceeds the amount determined for the year under subclause (a) (i), and (ii) the corporation’s eligible future balance at the end of the year.  2007, c. 11, Sched. A, s. 39 (1). Eligible future balance (2) For the purposes of subclause (1) (b) (ii), a corporation’s eligible future balance at the end of a taxation year is equal to the amount, if any, by which “A” exceeds “B” where, “A” is the amount, if any, by which the corporation’s Ontario research and development tax credit at the end of the year exceeds the amount determined for the year under subclause (1) (a) (i), and “B” is the sum of, (a) the lesser of, (i) the portion of the amount of “A” attributable to the first taxation year after the taxation year, and (ii) the amount that would be deductible under this section for the first taxation year after the taxation year if that amount were determined without reference to clause (1) (b), (b) the lesser of, (i) the portion of the amount of “A” attributable to the second taxation year after the taxation year, and (ii) the amount that would be deductible under this section for the second taxation year after the taxation year if that amount were determined without reference to clause (1) (b), and (c) the lesser of, (i) the portion of the amount of “A” attributable to the third taxation year after the taxation year, and (ii) the amount that would be deductible under this section for the third taxation year after the taxation year if that amount were determined without reference to clause (1) (b).  2007, c. 11, Sched. A, s. 39 (2). Partnerships
42 If a particular amount is deemed under subsection 127 (13) of the Federal Act to be an amount determined in respect of a corporation (in this section called the “transferor”) for a taxation year under paragraph 127 (13) (d) of that Act as a consequence of an agreement or amended agreement referred to in subsection 127 (13) of that Act between the transferor and another corporation (in this section called the “transferee”) and subsection 127 (15) of that Act does not apply to the agreement, the following rules apply: 1. There shall be included in the value of “E” in the calculation of the transferor’s Ontario SR & ED expenditure pool under subsection 38 (4) the portion, if any, of the particular amount that may reasonably be considered to be in respect of the amount that, but for the agreement, would be the transferor’s Ontario SR& ED pool at the end of the year. 2. If subsection 127 (16) of the Federal Act does not apply in respect of the agreement, the amount determined under paragraph 1 is deemed to be an amount determined in respect of the transferee for the purposes of determining the value of “D” in the calculation of the transferee’s Ontario SR & ED expenditure pool under subsection 38 (4) for the transferee’s first taxation year that ends at or after the end of the year.  2007, c. 11, Sched. A, s. 42.
43 (1) A corporation may waive its eligibility for all or a portion of the current portion of its Ontario research and development tax credit at the end of a taxation year by delivering a written waiver identifying the amounts referred to in clause (a) or (b) of the definition of “current portion” in subsection 38 (1) with its return required to be delivered under this Act for the year or in an amended return for that year.  2007, c. 11, Sched. A, s. 43 (1). Same (2) If a corporation files a waiver under subsection (1) in respect of a taxation year, each amount that is relevant to the calculation of an amount identified in the waiver is deemed never to have been paid or incurred for the purposes of the application of this subdivision to the corporation.  2007, c. 11, Sched. A, s. 43 (2).
53.1 (1) In this subdivision, “Chief Electoral Officer” means the Chief Electoral Officer appointed under the Election Act; (“directeur général des élections”) “contribution” means a contribution for the purposes of the Election Finances Act to a registered candidate, registered constituency association or registered party; (“contribution”) “registered candidate” means a candidate within the meaning of the Election Finances Act
who is registered under that Act; (“candidat inscrit”) “registered constituency association” means a constituency association within the meaning of the Election Finances Act that is registered under that Act; (“association de circonscription inscrite”) “registered party” means a political party registered under the Election Finances Act. (“parti inscrit”)  2009, c. 18, Sched. 28, s. 8. Eligible contribution (2) A contribution made by a corporation during a taxation year and before January 1, 2017 to a registered candidate, registered constituency association or registered party is an eligible contribution for the purposes of this subdivision if the receipt required by the Chief Electoral Officer under the Election Finances Act to be issued to the corporation for the contribution is filed with the Ontario Minister with the return required to be filed under this Act for the taxation year.  2009, c. 18, Sched. 28, s. 8; 2016, c. 22, s. 60 (1). Eligible contribution balance (3) The eligible contribution balance of a corporation for a taxation year for the purposes of this subdivision is the amount, if any, calculated using the formula, A – (B + C) in which, “A” is the sum of all eligible contributions each of which was made by the corporation in the taxation year or in any of the previous 20 taxation years of the corporation, “B” is the sum of all eligible contributions each of which, (a) is included in “A”, and (b) was deducted in computing the corporation’s taxable income for the purposes of Part II of the Corporations Tax Act for a previous taxation year, and “C” is the amount determined in respect of the corporation for the year under subsection (4). 2009, c. 18, Sched. 28, s. 8. Same (4) For the purposes of subsection (3), the amount of “C” in respect of a corporation for a taxation year is the sum of all amounts each of which is the amount, if any, determined using the formula, D/E in which, “D” is the amount of any tax credit deducted under section 53.2 for one of the corporation’s previous 20 taxation years in respect of an eligible contribution included in determining the amount of “A” in subsection (3) for the year, and “E” is the corporation’s basic rate of tax for the previous taxation year. 2009, c. 18, Sched. 28, s. 8; 2009, c. 34, Sched. U, s. 11. Section Amendments with date in force (d/m/y) 2009, c. 18, Sched. 28, s. 8 - 01/01/2009; 2009, c. 34, Sched. U, s. 11 - 01/01/2009 2016, c. 22, s. 60 (1)
- 01/01/2017
53.2 There may be deducted from the tax otherwise payable by a corporation under this Division for a taxation year the least of, (a) the product determined by multiplying the corporation’s basic rate of tax for the year by the corporation’s eligible contribution balance for the year; (b) the amount determined by multiplying the corporation’s basic tax rate for the year by, (i) if the taxation year ends before January 1, 2017, the amount determined by multiplying $15,000 by the indexation factor determined under section 40.1 of the Election Finances Act, as it read at the end of that taxation year, in respect of the calendar year in which the taxation year ends, or (ii) if the taxation year ends after December 31, 2016, $19,950; and (c) the corporation’s tax payable under this Division for the year, determined without reference to this section and sections 39 and 53.  2009, c. 18, Sched. 28, s. 8; 2016, c. 22, s. 60 (2). Section Amendments with date in force (d/m/y) 2009, c. 18, Sched. 28, s. 8 - 01/01/2009 2016, c. 22, s. 60 (2)
- 01/01/2017 Division C — Corporate Minimum Tax Interpretation
56 (1) The corporate minimum tax payable by a corporation for a taxation year under this Division is the amount calculated using the formula, (I – L) × A × R in which, “I” is the amount of the corporation’s adjusted net income, if any, for the year, “L” is the amount of the corporation’s eligible losses, if any, for the year, “A” is the corporation’s Ontario allocation factor for the year, and “R” is the sum of, (a) 0.04 multiplied by the ratio of the number of days in the year that are before July 1, 2010 to the total number of days in the year, and (b) 0.027 multiplied by the ratio of the number of days in the year that are after June 30, 2010 to the total number of days in the year. 2009, c. 34, Sched. U, s. 13. Deductions from tax (2) A corporation may deduct from the corporate minimum tax otherwise payable by it under this Division for a taxation year, (a) the amount of the corporation’s foreign tax credit for the year, as determined under section 59, if the corporation is not a life insurance corporation; and (b) the amount of tax payable by the corporation under Division B for the year, determined without reference to any deduction under section 53.  2007, c. 11, Sched. A, s. 56 (2). Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. U, s. 13 - 15/12/2009