Yukon provincial tax credits — Yukon First Nations Tax Credit, Yukon Small Business Investment Tax Credit (25%), Yukon Research and Development Tax Credit (15%), Yukon Manufacturing and Processing Profits Tax Credit, Yukon Mineral Exploration Tax Credit (25%). Triggers "Yukon tax credits", "Yukon…
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Built by Michael Cutajar and the OpenAccountants team. Written from the official sources it cites.
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R-YT-1
Non-resident of Yukon on Dec 31 — provincial credits do not apply; refer to province of residenceR-YT-1
R-YT-2
Federal credit substitution — this skill does not duplicate federal SR&ED, ITC, or CMETC computationsR-YT-2
R-YT-3
First Nations Self-Government tax sharing disputes — refer to the relevant Self-Government Financial Transfer Agreement; do not computeR-YT-3
R-YT-4
Trust returns (T3) claiming YT credits — out of scopeR-YT-4
R-YT-5
Corporate associated-group SBD allocation — defer to a corporate tax skillR-YT-5
R-YT-6
Partial-year YT residency with mid-year FN status change — refer to credentialed reviewerR-YT-6
FNTC mechanism
For an individual who is a citizen of a self-governing Yukon First Nation and whose income is attributable to a Settlement Land under a Final Agreement, the FNTC reduces Yukon personal income tax payable by an amount equivalent to up to 95% of the federal abatement that would otherwise be remitted to the First Nation government under the Personal Income Tax Administration Agreement. For practical computation: 1. Compute Yukon tax payable on Form YT428 as if no FNTC applied. 2. Determine the attributable portion of taxable income (income earned on Settlement Land or otherwise attributable under the Final Agreement). 3. Multiply by the Yukon effective rate. 4. Apply the up to 95% abatement factor — the residual 5% remains with the Yukon government. 5. Claim the FNTC on the designated YT428 line.Yukon Income Tax Act s. 21
Corporate FNTC
A corporation whose income is attributable to a Yukon First Nation Settlement Land and which is owned by, or controlled by, a self-governing Yukon First Nation, may claim a parallel corporate FNTC reducing Yukon CIT payable by up to 95% of the attributable portion.YITA + Self-Government Agreement
SBITC rate
25%YITA Part 2, Div. 2
Annual cap per investor
$25,000 credit (i.e., $100,000 of qualifying investment)YITA Part 2, Div. 2
SBITC type
Non-refundable (carryforward 7 years, carryback 3 years)YITA Part 2, Div. 2
Eligible investment
Equity in an eligible Yukon small business corporation registered with the Yukon Department of Economic Development; certificate issuedYITA Part 2, Div. 2
Eligible investor
Yukon resident individual at the time of investmentYITA Part 2, Div. 2
SBITC workflow
1. Investor receives a Yukon SBITC certificate from the Department of Economic Development. 2. Certificate number and credit amount entered on Form YT479. 3. Credit applied against Yukon tax payable on Form YT428 (after the FNTC and most other non-refundables). 4. Unused balance carried forward / back as above.YITA Part 2, Div. 2
General rate
15%YITA Part 2
Enhanced rate
20%YITA Part 2
Type
Refundable (paid out even if no tax owing)YITA Part 2
Coordination
Computed on Yukon-source portion; federal SR&ED ITC is computed separately on Schedule T661 + Schedule 31YITA Part 2
R&D credit workflow
1. Complete federal Form T661 (SR&ED claim) and Schedule 31 first. 2. Identify the Yukon-source portion of eligible expenditures. 3. Apply the 15% / 20% rate. 4. Claim the refundable credit on the corporate T2 (Schedule 443) or individual YT479.YITA Part 2
M&P Yukon rate reduction
2.5%YITA s. 17.1
YMETC rate
25%YITA Part 2
Type
Non-refundable for both individuals and corporations; carryforward 10 yearsYITA Part 2
Eligible expenditures
Defined by reference to the federal Canadian Exploration Expense (CEE) under ITA s. 66.1, but restricted to grassroots-stage Yukon-source amountsITA s. 66.1
Coordination
In addition to the federal Critical Mineral Exploration Tax Credit (CMETC) at 30% where applicable, and the federal Mineral Exploration Tax Credit (METC) at 15% otherwiseYITA Part 2
Flow-through share interaction
The YMETC is typically claimed by an investor receiving a flow-through share renunciation of eligible CEE from a Yukon junior mining company. Reported on: - Individual: Form T1229 (federal flow-through) + Form YT479 line for YMETC - Corporate: Schedule 443YITA Part 2
Maximum eligible expense
$1,000 per child under 16 (under 18 if eligible for disability tax credit)Form YT479
Refundable rate
6.4%Form YT479
Maximum refundable credit
$1,000 × 6.4% = $64 per child; plus a $500 supplement for children eligible for the disability tax credit (total expense allowance)Form YT479
Claim location
Claimed on Form YT479Form YT479
Conservative defaults
- Default the FNTC to 'refer to reviewer' — never auto-compute without the citizenship determination, Settlement Land attribution, and confirmation of which Self-Government Agreement applies. - Default SBITC to uncertified until the Yukon Department of Economic Development certificate number is in hand. - Default YMETC eligibility to grassroots only — if the work is past pre-feasibility, refuse and refer. - Default R&D credit Yukon-source allocation to the conservative attribution (lesser of T661 expenditures and Yukon-PE expenditures). - Default provincial allocation (Schedule 5) to the federal Reg. 400 result — do not optimize. - If the taxpayer was a YT resident for less than the full year, refuse and refer.
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
This skill covers the Yukon-specific personal and corporate tax credits administered alongside the federal T1/T2 return for the 2025 tax year. Yukon is the smallest sub-national jurisdiction in Canada by population but has one of the most distinctive tax credit regimes — notably the Yukon First Nations Tax Credit (FNTC), which has no parallel in any other province or territory, and a 0% provincial small business CIT rate, the most generous in Canada.
Yukon's personal income tax is administered by the Canada Revenue Agency (CRA) under a tax collection agreement, but the credit parameters, definitions, and unique-to-Yukon credits are set by the Yukon Department of Finance under the Yukon Income Tax Act (RSY 2002, c. 118).
Personal (Form YT428 / YT479 series) (See table)
| Credit | Type | 2025 rate / amount | Anchor |
|---|---|---|---|
| Yukon First Nations Tax Credit (FNTC) | Non-refundable; reduces YT tax payable | Up to 95% of federal abatement equivalent for Yukon First Nation citizens on Settlement Land | Yukon Income Tax Act s. 21 |
| Yukon Small Business Investment Tax Credit (SBITC) | Non-refundable | 25% of eligible investment; cap $25,000 credit/year per investor | YITA Part 2, Div. 2 |
| Yukon Children's Fitness Tax Credit | Refundable | Lesser of expenses or $1,000 per child under 16 | YT479 line 63800 |
| Yukon Mineral Exploration Tax Credit (YMETC) | Non-refundable | 25% of eligible YT-source grassroots mineral exploration | YITA Part 2 |
| Yukon political contribution tax credit | Non-refundable | Sliding (max $650) | Standard YT428 |
| Yukon Carbon Price Rebate — Individuals (YGCR) | Refundable | Quarterly fixed amount | YGCR program |
Corporate (T2 + YT Schedule 443/440) (See table)
| Credit | Type | 2025 rate | Anchor |
|---|---|---|---|
| Yukon general CIT rate | Statutory | 12% | YITA s. 17 |
| Yukon small business deduction (active income ≤ $500k) | Statutory | 0% (combined federal-only 9%) | YITA s. 17 |
| Yukon M&P Profits Tax Credit | Statutory rate reduction | Reduces general 12% to 2.5% on M&P profits | YITA s. 17.1 |
| Yukon R&D Tax Credit | Refundable | 15% general; 20% if paid to YT university/college | YITA Part 2 |
| Yukon Mineral Exploration Tax Credit (corporate) | Non-refundable | 25% | YITA Part 2 |
| First Nations corporate income tax abatement | Statutory reduction | Up to 95% abatement for qualifying entities | YITA + Self-Government Agreement |
The FNTC is the single most distinctive feature of the Yukon personal and corporate tax system. No other Canadian jurisdiction operates a credit of this design. It implements the tax-sharing provisions of the Yukon Self-Government Agreements signed between Canada, Yukon, and the 11 self-governing Yukon First Nations.
Refer all FNTC computations to a credentialed reviewer. The interaction with the federal abatement, the attribution rules, and the specific terms of each First Nation's Self-Government Agreement make this an area where the conservative default is always refer, never auto-compute.
The Yukon SBITC encourages investment in eligible Yukon-based small businesses by individual Yukon-resident investors.
A refundable credit available to both individuals and corporations carrying on Scientific Research and Experimental Development (SR&ED) work in Yukon, in addition to the federal SR&ED ITC.
This is a statutory rate reduction, not a discrete credit line. Under YITA s. 17.1, M&P profits earned in Yukon are taxed at 2.5% rather than the general 12%, mirroring the federal M&P rate reduction.
Applies to non-CCPC income and to CCPC income above the $500,000 SBD limit when classified as M&P profit
M&P determination follows the federal rules: Schedule 27 (Calculation of Canadian Manufacturing and Processing Profits Deduction)
Reported on T2 Schedule 5 (provincial tax) with M&P portion identified
Combined federal-Yukon rate on M&P profit: 15% federal + 2.5% Yukon = 17.5%
M&P Yukon rate reduction — 2.5% percent (reduces general 12% rate on M&P profits) (YITA s. 17.1)
Mining is the single largest private-sector industry in Yukon. The YMETC supports grassroots mineral exploration on Yukon-staked claims.
A refundable provincial credit (Yukon retained this credit after the federal version was eliminated in 2017).
Yukon operates the most generous CIT rate structure in Canada for small CCPCs.
2025 rates (Yukon Department of Finance)
| Income type | Federal | Yukon | Combined |
|---|---|---|---|
| Small business income (CCPC, ≤ $500k active) | 9% | 0% | 9% |
| General active business income | 15% | 12% | 27% |
| M&P profits | 15% | 2.5% | 17.5% |
| Investment income (CCPC) | 38.67% (incl. refundable Part I) | 12% | up to 50.67% before RDTOH |
Form YT428 (Yukon Tax) and its companion Form YT479 (Yukon Credits) are filed as part of the T1 General. Key lines for 2025:
Form lines table (CRA Form YT428 / YT479 (2025 tax year))
| Form | Line | Credit |
|---|---|---|
| YT428 | 58040–58400 | Basic personal amount, age, spouse, eligible dependant, etc. (mirror federal where harmonized) |
| YT428 | (FNTC line) | Yukon First Nations Tax Credit |
| YT428 | (Political contribution) | Political contribution credit |
| YT479 | 63855 | Yukon Children's Fitness Credit (refundable) |
| YT479 | (SBITC line) | Small Business Investment Tax Credit |
| YT479 | (YMETC line) | Mineral Exploration Tax Credit |
| YT479 | (R&D line) | Yukon R&D Tax Credit (refundable, individual) |
Yukon harmonizes most personal non-refundable credit definitions with the federal T1 schedule, including the basic personal amount mechanism — but applies them at Yukon rates (lowest bracket 6.4%, top bracket 15% for 2025).
Facts. Whitehorse Tech Ltd. is a Yukon-incorporated CCPC, 100% owned by a Yukon-resident individual. 2025 calendar year. Active business income $400,000. No associated corporations. No passive income grind. Not engaged in M&P.
Step 1 — Federal tax.
Step 2 — Yukon tax.
Step 3 — Combined.
Step 4 — Comparison.
Reviewer note. The 0% Yukon SBD rate is a powerful incentive for genuine Yukon-resident operating businesses. It does not by itself justify a Yukon incorporation for a business operated elsewhere — the corporation must have a permanent establishment in Yukon under federal Reg. 400, and provincial allocation under Schedule 5 applies. Sham residency / mailbox PE schemes will be reassessed.
End of skill — Yukon Provincial Tax Credits & Incentives v1.0.
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