This schedule is a workchart only and is used by corporations that had a permanent establishment in Newfoundland and Labrador and its offshore area (as defined in section 400 of the federal Income Tax Regulations) to calculate the following for each period in Newfoundland and Labrador:
(a) Income eligible for the Newfoundland and Labrador and its offshore area lower and higher tax rates;
(b) Total Newfoundland and Labrador and its offshore area tax at the lower and higher rates before credits.
The amount calculated in (b) above transfers to Schedule 5 in the Provincial or territorial tax payable before credits column for Newfoundland and Labrador (or for its offshore area) and to line 200 (or line 205) of Schedule 5.
See also