Patents, licences and acquired IP in Newfoundland and Labrador
A Newfoundland and Labrador corporation buying patents and purchased intellectual property on or after September 15, 2026 can deduct 100% of the cost in the year the property is available for use. Combined tax rates in Newfoundland and Labrador: 11.0% on small business income and 30.0% at the general rate.
Patents, licences and acquired IP in Newfoundland and Labrador
Worked examples
| Purchase | Old year-one deduction | New year-one deduction | Tax reduction (small business) | Tax reduction (general rate) | NPV benefit (general) |
|---|---|---|---|---|---|
| $25,000 | $3,125 | $25,000 | $2,750 | $7,500 | $1,420 |
| $100,000 | $12,500 | $100,000 | $11,000 | $30,000 | $5,681 |
| $250,000 | $31,250 | $250,000 | $27,500 | $75,000 | $14,202 |
Newfoundland and Labrador cut its small business rate to 2.0% effective January 1, 2026. How the purchase agreement describes the asset matters. A 'patent licence for 10 years' is Class 44. 'Goodwill' is Class 14.1 and does not qualify.
See also: all assets in Newfoundland and Labrador · Patents, licences and acquired IP in other provinces
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