Government of Nova Scotia, Canada
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Venture Capital Tax Credit

The Venture Capital Tax Credit (VCTC) is a non-refundable personal and corporate income tax credit available to eligible investors who invest in qualifying venture capital funds.

The credit is meant to encourage investment in professionally managed venture capital funds which in turn make equity capital investments in eligible small and medium corporations within Atlantic Canada.

The credit for individual and corporate eligible investors is equal to 15% of eligible investments made in a qualifying venture capital fund. The maximum annual investment amount eligible for the tax credit is $500,000.

Venture Capital Tax Credit Regulations

Guidelines and application forms will be added to this webpage shortly.

Application for a Certificate of Registration

A venture capital fund must apply for a Certificate of Registration to become registered as a qualifying venture capital fund.

Application for an Authorized Raise of Equity Capital

Once a venture capital fund is approved as a qualifying venture capital fund, it may apply to carry out authorized raises of equity capital from eligible investors.

To qualify for the tax credit, eligible investments must be made during the timeframe a qualifying venture capital fund is authorized to raise equity capital.

Application for Tax Credit Certificates

At the end of an authorized raise of equity capital, qualifying venture capital funds must apply for tax credit certificates on behalf of all eligible investors who made eligible investments during the authorized raise of equity capital. The application for tax credit certificates must be received by the department within 6 months of the expiry date of the qualifying venture capital fund's authorized raise of equity capital.

Annual Returns

A qualifying venture capital fund which has completed an authorized raise of equity capital must submit an annual return to the VCTC administrator. Each annual return must be submitted within 90 days of the qualifying venture capital fund's tax year end for each of the 4 years after the expiry date of an authorized raise equity capital.

NOTE: Completed application packages and annual returns must be submitted via email to the VCTC Administrator. Paper applications are not accepted.

Personal Income Tax & Credits

Orange ClockFor More Information

Elvira Dalag, Revenue Officer
Tel: 902-424-2808
Email: Elvira.Dalag@novascotia.ca