Within Corporation

Eligible Research Institute

Earned Income

Taxable Income

30

30

Taxes Payable-CCPC Rate 15%

(4.5)

(4.5)

Research Expenditure

(100)

(100)

Grants Received

50

50

SR&ED Credit (35%)

17.5

17.5

Ontario Eligible Research Institute Tax Credit (20%)

0

10

Ontario Innovation Tax Credit (10%)

5

5

Research Tax Deduction (4.5%)

2.25

2.25

Net Research Expenditure

(25.25)

(15.25)

Net Income

0.25

10.25

Capital Gains

Taxable Capital Gains

30

30

Taxes Payable-Capital Gain Rate 28%/2

(4.2)

(4.2)

Research Expenditure

(100)

(100)

Grants Received

50

50

SR&ED Credit (35%)

17.5

17.5

Ontario Eligible Research Institute Tax Credit (20%)

0

10

Ontario Innovation Tax Credit (10%)

5

5

Research Tax Deduction (4.5%)

2.25

2.25

Net Research Expenditure

(25.25)

(15.25)

Net Income

0.55

10.55