Canada

This North American country is the largest in the western hemisphere. It has two official languages: English and French and its official currency is the Canadian dollar (CAD). Canada’s capital is Ottawa, the second largest city in the province of Ontario. 

Canadians benefit from a high standard of living, great transportation links, and rich natural resources. The government in Canada is stable and its workforce is skilled. It has a healthy free-market economy featuring small businesses right up to large multinationals. 

Historically, Canada’s economic success was built on agriculture and export of natural resources. But secondary industry has seen Canada rise to compete with the top manufacturing nations across the globe. Canadians have seen huge growth in the service industry in recent years. And, along with the US, Canada is now a major trading nation.

Until very recently, the country’s economy took a significant hit due to low crude oil prices. But that looks set to change as Canada prepares to ramp-up its oil exports as Western importers refuse Russian crude. 

Canada has benefitted from stable trading in terms of exports to the US thanks to the United States-Mexico-Canada Agreement. But with the Biden administration introducing their ‘Buy American’ policy, Canadian exporters are keeping a keen eye on any developments.

Covid took its toll on the economy too, with interest rates reducing significantly in March 2020 to limit the damage. The government introduced a raft of measures to support businesses and individuals, but it’s not yet clear which of them have been effective. But, Canada entered the pandemic with strong employment figures and a stable economy which should help with recovery.

Our local Tax Natives in Canada can tell you everything you need to know about the ins and outs of your tax obligations there. Whether you’re buying a single property, or doing multi-million-dollar business deals, we’ll get you the advice you need. Just say the word and we’ll hook you up with a local expert who can answer all your questions. 

THE HEADLINES

• Federal corporate income tax is 15%, with provincial and territorial rates coming in between 8% and 16%
• Federal top rate personal income tax rate is 33%, with provincial and territorial rates ranging from 11.5% to 21%
• The combined federal and provincial or territorial sales taxes (VAT) are between 5% and 15%