The Political Contributions Tax Credit for Corporations (PCTC) is a non-refundable tax credit. It replaced the tax deduction for political contributions for tax years ending after December 31, 2008.
The Canada Revenue Agency (CRA) administers the program on behalf of Ontario through the federal income tax system.
Who can claim this tax credit?
Corporations that make eligible contributions may claim this tax credit. An eligible contribution is made under the Election Finances Act (EFA) to a registered candidate, a registered constituency association or a registered political party.
How do I claim this tax credit?
Corporations may claim the tax credit on Schedule 525 of their T2 Corporation Income Tax Return.
How is the tax credit calculated?
The amount of the credit depends on your corporation’s total eligible contributions for a tax year and its Ontario income tax payable for the year.
An eligible contribution is made under the EFA to a registered candidate, a registered constituency association, or a registered party. The PCTC cannot be claimed for contributions to municipal or federal elections.
The maximum tax credit that a corporation can claim in a year is $2,139. This is based on maximum allowable annual contributions of $18,600, as established under the EFA. For more details please refer to Schedule 525.
