Updated:
Glossary term
SBD — Small Business Deduction
Small Business Deduction: federal corporate tax knockdown for CCPC to 9% on first $500K active business income. Plus provincial reduction. Phase-out from $50K passive income.
Related terms
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…
RSU
Restricted Stock Unit — equity compensation where company promises shares after vesting. FMV at vesting day a…
ESPP
Employee Stock Purchase Plan — payroll-deducted contributions to buy company stock at a discount (typically 1…
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