A company is considered to be a small business corporation in British Columbia if it has less than $10 million of taxable capital. Taxable capital is essentially the retained earnings of a company, less small adjustments for certain items.
If a company is below this threshold, it can qualify to have the first $500,000 of active business income taxed at the small business corporate tax rate of 13%. Active income above this threshold will be taxed at 26%.