Software in Newfoundland and Labrador
A Newfoundland and Labrador corporation buying software licences and custom builds 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.
Software 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 | $12,500 | $25,000 | $2,750 | $7,500 | $200 |
| $100,000 | $50,000 | $100,000 | $11,000 | $30,000 | $801 |
| $250,000 | $125,000 | $250,000 | $27,500 | $75,000 | $2,002 |
Newfoundland and Labrador cut its small business rate to 2.0% effective January 1, 2026. Custom development that you own outright is capital property; a subscription you rent is not. Structure the deal so you own the code if you want the write-off.
See also: all assets in Newfoundland and Labrador · Software in other provinces
Free: the Year-End Purchase Checklist (PDF)
One page. What qualifies, what does not, the 'available for use' trap, and the seven questions to ask your accountant before you buy. No spam, unsubscribe any time.
The Mega Deduction Year-End Playbook
Everything you need to walk into your accountant's office with a plan instead of a question. Built for owner-managed Canadian businesses that expect a profitable 2026.
- Excel purchase planner with every province's rates and every CCA class pre-loaded. Model up to 12 purchases, see the year-one deduction, tax reduction and 10-year comparison for each.
- The 41-page Playbook (PDF): eligibility by asset class, the exclusions, 'available for use' rules, financing vs. leasing, recapture risk, CCPC vs. sole proprietor, and worked examples for 12 industries.
- Accountant brief template (Word): a one-page memo you fill in and send so your accountant can confirm the plan in one email instead of a meeting.
- 30-day action plan for purchases that must be delivered and installed before your fiscal year-end.
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Secure checkout by Stripe. Files delivered immediately after payment. Not tax advice; every plan should be confirmed by your accountant.