Corporate investment management for incorporated Canadians. Built for how a corporation is taxed, and coordinated with your accountant.
Investment income inside a corporation is taxed on its own. It can also change the tax on the business. These are the federal numbers.
A Canadian-controlled private corporation gets the federal small business rate on up to $500,000 of active business income. That rate is 9%. Without it, the federal rate is 15%.
When your corporation and its associated corporations earn more than $50,000 of passive investment income in a year, the business limit starts to shrink. The tax term is adjusted aggregate investment income.
The federal business limit is reduced by $5 for every $1 of passive income over $50,000. At $150,000 of passive income, it is gone.
It is measured on the prior year's investment income. The provincial effect depends on your province.
$80,000 of passive income is $30,000 over the line. That removes $150,000 of the $500,000 federal limit. On $150,000 of business income, that is 6 percentage points more federal tax: $9,000 a year, before provincial tax.
See the arithmeticOnly half of a capital gain is taxable. A gain is taxed when it is realized, not while it builds. Interest is different. Interest and most foreign income are taxed in the corporation at high rates, and they count fully toward the $50,000.
The non-taxable half of a capital gain is added to the corporation's capital dividend account. That balance can be paid to shareholders tax-free. Interest adds nothing to it. Realized capital gains do.
Part of the tax a corporation pays on investment income is refundable. It is tracked in an account called refundable dividend tax on hand, or RDTOH. It returns to the corporation when taxable dividends are paid to shareholders. When to pay them is a decision for you and your accountant.
We build corporate portfolios with Dimensional funds. They are low-distribution and oriented to capital gains, built for how corporate money is taxed.
A low-distribution portfolio is built to pay out less along the way, so less investment income lands on the return each year. The taxable half of a realized gain still counts as investment income in the year it is realized, so the timing of gains is part of the plan.
Low-distribution investing can help manage taxable investment income, but it does not eliminate tax. Mutual funds may distribute taxable income or capital gains even when you do not sell fund units. Corporate tax outcomes depend on the corporation’s specific circumstances, and your accountant remains responsible for corporate tax advice and calculations.
A written investment strategy documenting the corporation’s objectives, risk tolerance, liquidity requirements and investment approach. Reviewed annually and updated when material circumstances change.
Evidence-based portfolio management, ongoing monitoring and appropriate rebalancing, with consideration of relevant corporate tax implications.
Customized investment reports through the secure client portal, including portfolio performance, investment activity, fees and available corporate tax-related information.
With your authorization, we communicate directly with your accountant, provide relevant investment information and involve them when material investment-related tax considerations arise.
One scheduled annual review, with additional meetings when significant investment decisions or changing corporate circumstances warrant attention.
A comprehensive corporate investment tax reporting package to support your accountant’s work.
Our target is delivery within 30 days of the corporation’s fiscal year-end, provided the necessary information is available. Where third-party information is outstanding, delivery follows as soon as reasonably practicable after receipt.
This is a focused corporate investment-management service.
Comprehensive personal financial planning, retirement planning, estate planning and personal tax planning are not included in the corporate advisory fee.
Those services are available through a separately agreed Insight Private Wealth relationship.
Corporate accounts have their own rate. It is published here, confirmed to you in writing, and shown in dollars for your account before you decide.
Corporate investment accounts start at $1 million. Corporate accounts within a household are aggregated separately from personal accounts.
| Corporate assets | Annual advisory rate |
|---|---|
| First $3 million | 0.75% |
| Next $2 million ($3M–$5M) | 0.50% |
| Above $5 million | 0.25% |
Important information about fees
The advisory fees shown above reflect our fees for advice and services. They do not include additional costs that may apply to your investments or accounts, such as underlying investment management expenses, transaction charges, account fees, or applicable taxes. Actual costs depend on your investments and account arrangements and are disclosed through the applicable account documentation and regulatory reporting.
For more complex situations, we offer a separate 30-day review of the corporate investment arrangement.
The engagement examines relevant investment costs, portfolio structure, investment-related tax considerations and other issues within the agreed scope.
Clients receive written findings and recommendations.
The diagnostic is optional, independently valuable and not required before engaging Insight Planning for ongoing corporate investment management.
The fee is not credited toward future advisory fees.
The full schedule is on the fees page.
Your accountant prepares the year-end and knows your corporation. Our part is the investment account, and getting them what they need from it. You keep your accountant. We respect that relationship and will never ask you to change accountants or lawyers.
The portfolio is built low-distribution, so passive income is planned for, not discovered at filing.
With your permission, we coordinate directly with your accountant.
Nothing is ever paid between us and your accountant, in either direction.
Federal tax only. A Canadian-controlled private corporation with $500,000 or more of active business income.
Move the slider to your corporation's passive investment income. The figures and the chart show what happens to the federal business limit. It starts at the $80,000 example.
Use the left and right arrow keys to move in steps of $5,000.
Up to $9,000 more federal tax a year, before provincial tax
The full amount applies only if your corporation earns at least $500,000 of active business income. Your accountant confirms your figures.
Federal limit left, by passive income
If that is you, the next step is below.
Planning for the whole family’s wealth across generations, personal and corporate together? See Insight Private Wealth.
Investment expenses are only part of the picture.
The investments held inside your corporation may also create taxable distributions, investment income or other consequences worth examining.
Our free preliminary assessment is designed to identify potential issues involving:
It is an initial assessment, not a comprehensive investment review or a calculation of verified tax savings.
If more extensive analysis is warranted, we may recommend a separate Corporate Diagnostic.
Request an IntroductionStart with how a corporation is taxed, because it is not the same as a personal account. Interest and most foreign income are taxed in the corporation at high rates and count fully toward the $50,000 passive income line, while only half of a capital gain is taxable. That is why we build corporate portfolios to be low-distribution, and why the plan is set with your accountant.
Read more: How to Invest Retained Earnings in Your Corporation
A Canadian-controlled private corporation gets the federal small business rate on up to $500,000 of active business income. When the corporation and its associated corporations earn more than $50,000 of passive investment income in a year, that limit is reduced by $5 for every $1 over $50,000, and it is gone at $150,000. It is measured on the prior year's investment income, and the provincial effect depends on your province.
Read more: The Passive Income Rule for Canadian Corporations
No. A corporation can hold an investment account in its own name, whether it is an operating company, a professional corporation or a holding company. Whether a holding company makes sense for you is a question for your accountant and lawyer. The passive income rule counts associated corporations together.
It is a tax account that tracks amounts a private corporation can pay to its shareholders tax-free. Only half of a capital gain is taxable, and the non-taxable half is added to the capital dividend account. Your accountant tracks the balance and files the election when a capital dividend is paid.
Corporate accounts have their own graduated advisory fee schedule. Each rate applies only to the assets within its tier. The schedule is in the fee section of this page and on the fees page. You receive your rate in writing and in dollars before you decide.
Yes. With your permission, we coordinate directly with your accountant, and the portfolio is built low-distribution so passive income is planned for, not discovered at filing. Nothing is ever paid between us and your accountant, in either direction.
Our minimum for new relationships is $1,000,000. This page is written for owners with $1,000,000 or more invested or investable inside a corporation or holding company.
It is a separate, optional 30-day review of the corporate investment arrangement for more complex situations, for a $5,000 fixed fee. It examines relevant investment costs, portfolio structure, investment-related tax considerations and other issues within the agreed scope, and clients receive written findings and recommendations. It is not required before engaging Insight Planning for ongoing corporate investment management, and the fee is not credited toward future advisory fees.
It is a free preliminary assessment designed to identify potential issues involving investment costs, taxable investment income and distributions, corporate passive-income exposure and the structure of the existing investment portfolio. It is an initial assessment, not a comprehensive investment review or a calculation of verified tax savings. If more extensive analysis is warranted, we may recommend a separate Corporate Diagnostic.
The Corporate Tax Efficiency Test is by request, and free for owners who qualify.
Request an IntroductionOr reach us at (778) 488-5577 or info@insightplanning.com
By Shea Sanche, CFP® · Last reviewed: October 2026
This page is general information for Canadian business owners. It is not tax, legal or investment advice, and it does not replace your accountant. The tax figures are federal and were checked against Canada.ca on October 7, 2026. Tax rules change, and the provincial effect depends on your province. All investments involve risk, including the possible loss of principal. See the website disclaimer.