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Investment in Canada 

 

Canada is a great place to invest, do business, work, and live. If your company is considering investing or expanding into the vibrant Canadian economy, see the government of Canada's Invest in Canada website for a wide variety of information about business and life in Canada.

To help you decide whether Canada is right for your business, see KPMG's Competitive Alternatives. This biennial guide compares industry operations in Canada alongside other business locations in North America, Europe and Asia Pacific.

One of the factors your company will need to consider is Canada's tax system. The following overview can help you become more familiar with the tax issues your company may face.

 

What Are the Tax Considerations of Doing Business in Canada?

 

Corporate Income Tax

Corporate income is taxed in Canada by the province in which the corporation has its permanent establishment. Where a corporation has a permanent establishment in more than one province, rules exist to allocate the income among provinces. Where a non-resident corporation has no permanent establishment, an increased federal tax applies.

 

KPMG's Canadian Corporate Income Tax Rates shows the current combined federal and provincial tax, including all surtaxes, for income allocated to each province.

To see how these rates compare to other countries, see KPMG's International Corporate and Indirect Tax Rate Survey and our bi-annual Competitive Alternatives Special Report: Focus on Tax study, which compares the tax costs in 35 large cities in 10 countries.

 

Individual Income Tax

As with corporations, the fundamental distinction in the taxation of individuals is between residents of Canada and non-residents. Residents are taxed on their income from any source, while non-residents are only subject to tax on their Canadian-source income. KPMG's Canadian Personal Income Tax Rates shows the federal and provincial rates, brackets and surtaxes for all provinces.

 

To see how these rates compare to other countries, see KPMG International's Individual Income Tax and Social Security Rate Survey.

 

What Other Tax Considerations Do I Need to Keep in Mind?

 

 

How Can KPMG Help?

 

KPMG's Tax professionals can help businesses of all sizes fully consider investing in Canada, and would be happy to speak to you further about opportunities available in a variety of industries, including:

 

 

KPMG's full range of tax news and information is available from our publications Catalogue.

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