Disclaimer: This is intended to provide information respecting the New Brunswick Capital Taxes in the Province of New Brunswick under the New Brunswick Income Tax Act and the Financial Corporations Capital Tax Act. This should not be regarded as a replacement of the laws, regulations or administrative documents to which it refers.

In New Brunswick there are two types of capital taxes: a Large Corporations Capital Tax (LCCT) and a Financial Corporations Capital Tax (FCCT).

Large Corporations Capital Tax (LCCT):

The LCCT is levied on taxable capital in excess of $5 million of taxable capital in Canada. Taxable capital is defined under Part 1.3 of the Income Tax Act (Canada) for the purposes of the federal Large Corporations Tax. However, for the purposes of the New Brunswick LCCT, taxable capital does not include federally defined financial institutions. New Brunswick’s LCCT is administered by the Canada Revenue Agency (CRA). For further information contact the CRA by calling: 1-800-959-5525 or at: http://www.ccra-adrc.gc.ca/.

On December 23, 2005, government announced that the LCCT will be totally eliminated in 2009. The following indicates the rate schedule from tax year 2005 through to 2009.

Financial Corporations Capital Tax (FCCT):

The FCCT is levied at a rate of 3% on taxable capital of financial institutions in excess of $10 million as defined in the New Brunswick Financial Corporation Capital Tax Act. The FCCT is provincially administered. For further information contact the Revenue and Taxation Division of the New Brunswick Department of Finance at 1-506-453-2404.

Both the Large Corporations Capital Tax and the Financial Corporations Capital Tax are deductible from taxable income for federal and provincial corporate income tax purposes.

For further information please refer to the following Acts:

New Brunswick Income Tax Act
Financial Corporations Capital Tax Act