Taxation

PEI Provincial Corporate Income Tax (2008)

• Small Business – April, 2008 = 3.2%;
  April, 2009 = 2.1% (see note 1 below)
• Manufacturing and Processing 16%
• Federal Corporate Income Tax (2008) 19.5%
• Federal Small Business Tax (2008) 11%
• Real Commercial Property Tax is 1.5% of assessed value.
  (Note that property values in PEI are
  below the national average.)

Investment tax credits:

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

In PEI, there is:

• no payroll tax
• no corporation minimum tax
• no corporation capital or franchise tax
• no provincial sales tax on clothing or footwear
• no business or occupation tax
• no provincial sales tax on in-bound 800 number calls
• no provincial sales tax on outbound long-distance telephone
  usage in excess of 250,000 minutes per year

Note 1: Prince Edward Island's small business rate is reduced effective April 1, 2008, and is further reduced to 2.1% effective April 1, 2009 and 1% effective April 1, 2010.

Tax Free Programs:

Slemon Park – A 20-year provincial tax rebate incentive program available until December 31, 2012. A full annual rebate on all provincial taxes paid including income tax, provincial sales tax and real property tax for aviation-related businesses operating in Prince Edward Island.

Bloomfield and Poole's Corner – A 10-year tax rebate incentive program that includes provincial corporate income tax, sales tax and real property tax. Eligible companies, located in the Bloomfield or Poole's Corner Business Parks, are export focused manufacturers or value-added service providers.

Bio-Science Tax Holiday – A 10-year tax holiday providing rebates of provincial corporate income taxes for Bio-Science related companies. The Bio-Science Tax Holiday will encourage existing companies to expand and focus on commercial opportunities in the industry as well as help to attract new companies to the province.