Canada is the largest country in the western hemisphere and one of the largest in the world. Located in the northern part of North America, Canada extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean. It has a stable government, a skilled workforce, and its residents enjoy a high standard of living. The country has a well-developed transportation system and is rich in natural resources. Canada's official languages are English and French, and Ottawa is its federal capital. A parliamentary democracy, the country is divided into ten provinces and three territories. The official currency is the Canadian dollar (CAD).
Canada has a thriving free-market economy, with businesses ranging from small owner-managed enterprises to multinational corporations. Canada's economic development was historically based on the export of agricultural staples, especially grain, and on the production and export of natural resource products, such as minerals, oil and gas, and forest products. However, secondary industry has evolved to the stage where Canada ranks as one of the top manufacturing nations of the world. The service industry has also expanded rapidly and has transformed the Canadian economy from one based primarily on manufacturing to one with a significant service-based sector. Canada is among the world's major trading nations, with the United States (US) its primary trading partner.
Despite Canada’s abundant natural resources, skilled labour force, modern capital plant, and strong banking system, significantly lower crude oil prices in recent years have taken a considerable toll on the oil and gas sector and the country’s overall economy. However, lower energy costs helped consumers and the non-resource based sectors. Along with the lower Canadian dollar and an improved US economy, Canada’s manufacturing sector was growing, with higher exports to the United States.
US President Trump’s ‘Buy American’ policy and the renegotiation of the North American Free Trade Agreement (NAFTA) had introduced uncertainty for Canadian businesses who export into the US market. Now that the NAFTA's replacement, the United States-Mexico-Canada Agreement (known in Canada as the CUSMA), has been ratified by all three countries and will take effect 1 July 2020, Canadian businesses can expect a stable trading environment.
The recent COVID-19 pandemic has caused the Canadian economy to shrink significantly. Interest rates, which had been rising since mid-2017 and remained steady during 2019, were reduced sharply in March 2020, with the intent of limiting the economic fallout created by the pandemic. While most provincial governments had generally been reining in spending to balance their books, significant relief packages were announced and implemented by federal, provincial and territorial governments to financially support individuals and businesses during the nationwide lock down. It remains to be seen whether these relief packages are successful, as public health measures to limit the spread of COVID-19 are gradually eased to allow the economy to reopen. Given the expected long-term nature of the pandemic, it is unlikely that "business as usual" will be achieved in the near term and the economic outlook is uncertain. However, Canada entered the pandemic with high employment figures and a relatively strong economy, factors which will hopefully facilitate a quick economic rebound post-pandemic.
In Canada, PwC has more than 7,850 partners and staff in locations from St. John's on the Atlantic coast to Vancouver on the Pacific. With more than 110 years of excellence in Canada, we provide industry-focused professional services, including audit and assurance, risk assurance, tax, deals, and consulting in areas such as cybersecurity and privacy, human resources, digital transformation, and forensics. As tax laws constantly change, professional advice is essential. PwC in Canada works with companies of all sizes and in all industries to help tailor solutions using local knowledge and global experience. The priority of PwC Canada's Personal Tax, Estate and Wealth Planning Team is to understand your overall financial affairs and planning so we can identify tax strategies that help you achieve your goals. Linked into our global tax practice, we draw from a broad network of professionals who are trained to understand a spectrum of wealth matters to assist you in planning for the future.
|Corporate income tax (CIT) rates|
|Headline CIT rate (%)||
Federal CIT: 15%. Provincial and territorial CITs range from 11% to 16% and are not deductible for federal CIT purposes.
|Corporate income tax (CIT) due dates|
|CIT return due date||
Six months after the company's taxation year end.
|CIT final payment due date||
Generally, two months after the company's taxation year end.
|CIT estimated payment due dates||
Tax instalments are generally due on the last day of each month.
|Personal income tax (PIT) rates|
|Headline PIT rate (%)||
Federal top rate: 33%.
Provincial/territorial top rates range from 11.5% to 21%.
|Personal income tax (PIT) due dates|
|PIT return due date||
30 April (15 June for self-employed individuals)
|PIT final payment due date||
|PIT estimated payment due dates||
If applicable, 15 March, 15 June, 15 September, and 15 December.
|Value-added tax (VAT) rates|
|Standard VAT rate (%)||
Combined federal and provincial/territorial sales taxes range from 5% to 15%.
|Withholding tax (WHT) rates|
|WHT rates (%) (Div/Int/Roy)||
Non-resident: 25 / 25 / 25, may be reduced by treaty and to 0% for most interest paid to arm's-length non-residents.
|Capital gains tax (CGT) rates|
|Corporate capital gains tax rate (%)||
Half of a capital gain constitutes a taxable capital gain, which is included in the corporation's income and taxed at ordinary rates.
|Individual capital gains tax rate (%)||
Half of a capital gain constitutes a taxable capital gain, which is included in the individual's income and taxed at ordinary rates.
|Net wealth/worth tax rates|
|Headline net wealth/worth tax rate (%)||
|Inheritance and gift tax rates|
|Inheritance tax rate (%)||
|Gift tax rate (%)||