Presented by:
Sandra Marchesi
Embassy of Canada
Doing business with Canada
2
AGENDA
AGENDA
Open for business: Canada understands the importance of its business
community.
Canada is the best place for doing business among the G-7 over the next
five years .
Canada is the easiest place to start a business in the G7.
Canada is acclaimed for its superior business
climate…
Business Environment of the G-7 Countries,
Rank for Forecast Period 2015-2019
7th 6th 5th 4th 3rd 2nd 1st
Canada
U.S.
Germany
U.K.
France
Japan
Italy
Rank
4
Canada Offers an Overall Tax Advantage for
Firms to Expand..…
International Comparison of Statutory General Corporate Tax
Rates in 2015
39.0 34.3 32.1 30.2 27.5 26.3 20.010
15
20
25
30
35
40
45
U.S.
France
Japan
Germany
Italy
Canada
U.K.
%
As a result of corporate income tax reductions introduced by the Government since 2006, Canada
has the second lowest statutory corporate tax rate in the G-7 as of 2015.
In addition, Canada’s overall tax rate* on new business investment is substantially lower than all G-7
countries.
Source: Finance Canada, April 2015
*The tax rate on new business investment is the marginal effective tax rate (METR) that takes into account federal, provincial and territorial statutory corporate
income tax rates, deductions and credits available in the corporate tax system and other taxes paid by corporations, including provincial capital taxes and retail sales
taxes on business inputs.
Marginal EffectiveTax Rate* on New Business Investment, 2015
37.3 34.7 31.2 28.6 26.5 20.2 17.5 19.0
10
15
20
25
30
35
40
Japan U.S. France U.K. Germany OECD Average**
Italy Canada
%
Impact of federal and provincial actions since Budget 2006. 33.0
COMPETITIVE ADVANTAGES
Canada is a solid venue for innovation
•
Canada benefits by having one of the best R&D
tax treatments in the G-7.
•
Canada currently offers one of the most
favourable tax treatments for R&D among the
G-7.
•
Canada provides a system of tax credits and
accelerated tax deductions for a wide-variety of
R&D expenditures.
•
Eligible costs include: salaries, overhead, capital
equipment, and materials.
COMPETITIVE ADVANTAGES
Canada’s tax credits for R&D activities
Table 2: Combined Federal and Provincial/Territorial SR&ED tax credits Foreign-controlled corporations and other corporations not eligible for small CCPC status
Provinces Provincial credit Federal credit Combined credit rate (1)1
