Yukon Business Investment Tax Credit
Highlights
This program is a great opportunity for your business. It offers a 25% tax credit on investments made in eligible Yukon organizations. This means you can reduce your tax bill while supporting local businesses. The maximum claim per year is $25,000, and any unused amounts can be carried back three years or forward seven years.
What You Get:
- 25% tax credit on the amount invested
- Maximum claim of $25,000 per year
- Flexibility to carry unused amounts back three years or forward seven years
Why Apply?
- Reduce your tax liability while investing in local businesses
- Support the Yukon economy by investing in eligible organizations
- Easy qualification if you meet the basic criteria
By participating in this program, you can make a meaningful impact on your business and the local economy. The process is straightforward, making it an excellent option for your financial planning.
Financing Details
Type of Financing: Tax Credit
Eligible Expenses:
- Investments in eligible Yukon organizations.
- Expenses related to scientific research and experimental development conducted in the Yukon.
- Additional 5% credit for eligible expenses at Yukon College.
Use of Funds:
- The funds can be used to invest in incorporated, private corporations based in Yukon.
- The funds can be used for scientific research and experimental development activities within Yukon.
Restrictions:
- The funds cannot be used for personal expenses or investments outside of Yukon.
- The funds cannot be used for organizations with assets exceeding $100 million.
Repayment Terms:
- This is a tax credit, so there are no repayment terms or interest rates.
Fees:
- There are no fees associated with claiming this tax credit.
Qualifications
- Must be an incorporated, private corporation.
- Must maintain a permanent establishment in the Yukon.
- Must have its head office located in the Yukon.
- Must pay at least 25% of its salaries and wages to Yukon residents.
Must not exceed $100 million in assets.
Disqualifications:
- None specified.
Description
This program offers your business a valuable opportunity to benefit from tax credits. If you invest in eligible organizations in the Yukon, you can receive a 25% tax credit on the amount you invest. This can significantly reduce your tax burden.
Key benefits include:
- Maximum claim of $25,000 per year: This can provide substantial savings on your taxes.
- Flexibility with unused amounts: You can carry unused credits back 3 years or forward 7 years. This ensures you can maximize the benefit when it suits your business best.
By participating in this program, you can support local organizations while also gaining a financial advantage for your business. This makes it a win-win situation, helping you grow your business and contribute to the local economy.
Program Steps
Gather Required Documentation: Prepare the necessary documents to support your application. You will need:
- Financial statements
- Business plan
- Proof of Yukon residency
- Proof of incorporation and permanent establishment in the Yukon
- Payroll records showing at least 25% of salaries and wages paid to Yukon residents
Complete the Application Form: Obtain and fill out the application form for the program. Ensure all sections are completed accurately.
Submit the Application: Send your completed application form and all required documentation to the appropriate government office or online submission portal.
Await Confirmation: After submission, wait for confirmation that your application has been received and is under review. This may take several weeks.
Respond to Requests for Additional Information: If the reviewing body requires more information or clarification, respond promptly to any requests to avoid delays in processing.
Receive Approval and Tax Credit Certificate: Once your application is approved, you will receive a tax credit certificate. This certificate will detail the amount of the tax credit you are eligible to claim.
Claim the Tax Credit: Use the tax credit certificate to claim your credit on your annual tax return. Ensure you follow the instructions provided with the certificate to properly apply the credit.
Keep Records: Maintain copies of all submitted documents and correspondence related to your application for future reference and potential audits.