Taxation

Credits & Incentives

In Prince Edward Island there is:

  • no payroll tax
  • no corporation minimum tax
  • no corporation capital or franchise tax
  • no business or occupation tax
  • PEI Corporate Income Tax

    Small Business*    4.5% (as of April 1, 2013)

    Manufacturing & Processing    16%

    Real Commercial Property Tax    1.5% of assessed value

    (Note property values in PEI are below the national average.)

Federal Corporate Income Tax

Small Business* 11% Other Corporations 15%

* The Small Business rate applies to the income eligible for the federal small business deduction, currently the first $500,000; other conditions apply.

Available Investment tax credits:

  • Scientific Research and Experimental Development Tax Credit
  • Tax Credit on Manufacturing Equipment and Machinery 10%
  • Capital Investment Tax Credit 10%