Updated:
Glossary term
CCPC — Canadian-Controlled Private Corporation
Private corporation with >50% Canadian-resident ownership. Eligible for SBD — 9% federal corporate tax on first $500K active business income (vs ~38% normal). Foundation of most entrepreneur tax planning.
Related terms
MPC
Medical Professional Corporation — CCPC allowed for licensed physicians (AB, BC, ON, etc.). Same SBD benefits…
SBD
Small Business Deduction: federal corporate tax knockdown for CCPC to 9% on first $500K active business incom…
LCGE
Sell QSBS shares tax-free up to lifetime limit (~$1.27M in 2026, indexed). CCPC-only, 24-month holding + 90%…
QSBS
Shares of a CCPC that qualify for LCGE. 24-month holding + 90%+ active business assets in Canada at sale + 50…
TOSI
Tax on Split Income — CRA anti-income-splitting rule (2018). Dividends/income from CCPC to family members tax…
IPP
Defined-benefit pension plan for a single employee (usually owner-manager of CCPC, physician in MPC). Allows…
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