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______________________________________________________________________________Stewart McKelveyDoing Business in Atlantic CanadaNova ScotiaThe applicable corporate tax rates for corporations operating in Nova Scotia include the following for2009:Business TypeTax RateGeneral 16%Manufacturing & Processing 16%Small Business 6 5%In addition, Nova Scotia still collects a Capital Tax on Large Corporations (“LCT”). The LCT is onlyapplied to corporations generating a taxable capital of over $5-million. The applicable LCT rates are asfollows, between July 1, 2008 to June 30, 2009:Corporation’s Taxable CapitalUnder $10-million$10-million and overLCT Rate$5-million deduction & 0.4% on remainingtaxable capitalNo deduction & 0.2% on taxable capitalFor the period July 1, 2009 to June 30, 2010, the applicable LCT rates are as follows:Corporation’s Taxable CapitalUnder $10-million$10-million and overLCT Rate$5-million deduction & 0.3% on remainingtaxable capitalNo deduction & 0.15% on taxable capitalThe LCT is in the process of being phased out and will no longer apply to income earned after June 30,2012.As in New Brunswick and Prince Edward Island, financial institutions are subject to a provincial capital taxat a rate of four percent on taxable capital in excess of $2-million as defined in the Nova ScotiaCorporation Capital Tax Act. The tax payable under this legislation is deductible from taxable income forfederal and provincial corporate income tax purposesBusinesses subject to tax in Nova Scotia may be eligible for (or individually benefit from) one or more taxcredits, incentives and benefits programs offered by the provincial government. These include:• Equity Tax Credit;• New Small Business Tax Deduction;6 The Nova Scotia Small Business Deduction Limit is $400,000 as of January 1, 2009.Page 38