AJCTC Adjustment in T2

Tax Topics
1

Hi Everyone,

I have an urgent query.
Can we include the wages paid under AJCTC ( Apprentice Job Creation Training Credit) as an expense in profit and loss account and also under Sch 31 of T2 as a tax credit?

Any help will be highly appreciated.

Thanks!

2

I thought you could but I do not have the info handy to back it up… sorry.

Hopefully someone else will answer in the am

3

Yes, that is exactly how it works.

You claim all of your wages as an expense on S125 of the T2 return.

In addition; any wages that are eligible for an investment tax credit (AJCTC) also get entered along with other information in part 19 of the Schedule 31. This schedule calculates an additional Tax Credit for eligible wages. If using TaxCycle this investment tax credit is automatically brought into income on line 295 of Schedule 1 of next year’s T2 return.