Section 124 — Income Tax Act: Deduction from corporation tax

There may be deducted from the tax otherwise payable by a corporation under this Part for a taxation year an amount equal to 10% of the corporation’s taxable income earned in the year in a province. Notwithstanding subsection 124(1), no deduction may be made under this section from the tax otherwise payable under this Part for a taxation year by a corporation in respect of any taxable income of the corporation for the year that is not, because of an Act of Parliament, subject to tax under this Part or by a prescribed federal Crown corporation that is an agent of Her Majesty. In this section, province includes the Newfoundland offshore area and the Nova Scotia offshore area; ( province ) taxable income earned in the year in a province means the amount determined under rules prescribed for the purpose by regulations made on the recommendation of the Minister of Finance. ( revenu imposable gagné au cours de l’année dans une province )