Grow your business in Nova Scotia and reap the rewards of our generous incentive programs.
Payroll RebateNSBI’s payroll rebate is a performance-based incentive offered to eligible companies expanding in or locating to Nova Scotia.
- The rebate is a return (usually between 5%-10%) on your eligible gross payroll.
- The rebate is generally paid out annually over a term not exceeding five years.
- To receive the rebate, your company must create or retain a targeted number of jobs, at a minimum determined salary, within a set timeframe.
- If you achieve the specific targets set out in the payroll rebate agreement, funds will be rebated annually to your company.
Learn more about How Payroll Rebates Work
R&D Tax Credits
Canada offers one of the most rewarding R&D tax credit programs in the world. Combined with added incentives from Nova Scotia's provincial government - conducting your R&D in Nova Scotia is a worthwhile investment.
- The Scientific Research & Experimental Development (SR&ED) program promotes and supports the development of unique and advanced skills, knowledge and technological capabilities that will enable your business to better compete in domestic and international markets.
- Depending on the size and nature of your business, federal SR&ED tax credits can be either 20% or 35% of the eligible expenditures.
- If you're a Canadian controlled private corporation, you may be eligible to have a portion (or all) of the 35% federal tax credits paid out in cash.
- If you qualify for the 15% Nova Scotia R&D tax credits, you may be eligible to have a portion (or all) of the credits paid out in cash, if there are no other taxes owing.
Digital Media Tax Credit
Nova Scotia offers a digital media tax credit that rivals all others in Canada - making this the ideal place for video game development and interactive media.
- Qualifying companies can claim the lesser of 50% of the qualifying expenditures or 25% of total expenditures.
- Qualifying expenditures could include: 100% of eligible salaries in Nova Scotia, 65% of third party labour remuneration and up to $100,000 in marketing and distribution expenditures.
Nova Scotia Unlimited Liability Companies (NSULC)If you're considering establishing or acquiring a business in Nova Scotia, an NSULC may suit your business requirements. The following are some examples of the benefits of using an NSULC:
- A US taxpayer may be able to use losses from its Canadian business as a deduction against its income for US income tax purposes.
- A US taxpayer could use the NSULC to limit transfer pricing issues to Canada.
- A US individual could have a local corporate presence in Canada while at the same time having the benefit of a flow-through entity for US income tax purposes.
- NSULCs do not have residency requirements for directors of Nova Scotia companies.
DisclaimerNSBI provides the information on this website to the general public on an “as is” basis. While the information on this site may deal with legal issues, it does not constitute legal advice. If you have specific questions related to information available on this site, you are encouraged to consult an attorney who can provide you with legal advice based on the particular circumstances of your situation. See our Website Terms of Use for details.
If you would like further information on any of these programs, please contact us.
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