Taxation
Canada
An Overall Tax Advantage for Firms to Expand in CanadaBy 2012, when the March 2007 Federal Budget and October 2007 Economic & Fiscal update measures, and provincial retail sales tax harmonization and elimination of capital taxes measures are in place, Canada’s marginal effective tax rate (METR) will be the lowest in the G-7.
Country Comparison - METR (2012)
| Japan | U.S. | France | U.K. | Germany | Italy | Canada* | Provincial Reductions (Canada)* |
|---|---|---|---|---|---|---|---|
| 43.4 | 34.4 | 29.6 | 29.3 | 27.7 | 26.5 | 25.3 | 16.4 |
Source: Department of Finance's Economic Statement, October 30,2007 and the March 19, 2007 budget. Average federal and provincial/state corporate income tax rates.
* Provincial retail sales tax harmonization plus Federal-Provincial corporate income tax rate to 25%
Companies in Canada have a growing advantage in terms of income tax rates over U.S. firms. Elimination of the capital tax have boosted the Canadian tax advantage to 6.6 percentage points (2008).
Ontario
Ontario Corporate Income Tax Rates (2007)| Type of Income | Federal | Ontario | Combined |
|---|---|---|---|
| General | 22.12% | 14% | 36.12% |
| Manufacturing and Processing | 22.12% | 12% | 34.12% |
| Small Business | 12.12% | 5.5% | 18.62% |
Sales Tax
Provincial Sales Tax (PST) 8.00 %
Goods and Services Tax (GST) 5.00 %
Source: Canada Revenue Agency. 2007. Federal tax rates available at: www.cra.gc.ca.
Waterloo Region (Municipal Property Tax Rates, 2008)
| Total Residential* | Total Industrial* | |
|---|---|---|
| Cambridge | 1.333570% | 5.408460% |
| Kitchener | 1.321770% | 5.377660% |
| Waterloo | 1.299781% | 5.320279% |
| North Dumfries | 1.004478% | 4.549536% |
| Woolwich | 1.054003% | 4.678797% |
| Wellesley | 1.157324% | 4.948339% |
| Wilmot | 1.152583% | 4.936090% |
*Residential and Industrial - taxable at full rate, includes City, Region, and Education tax rates.
Source: City of Cambridge, City of Kitchener, City of Waterloo, Township of North Dumfries, Township of Wellesley, Township of Woolwich, Township of Wilmot.
“Is it a good place to invest? Well, we’re investing over $10M in R&D here annually and our growth plan continues as we deliver digital cinema products to the world from Waterloo Region.”
Gerry Remers, President
Christie Digital
Gerry Remers, President
Christie Digital
