British Columbia, Canada is an attractive place to do business. Our low corporate tax rate is among the lowest in North America, and business-oriented policies and natural advantages help keep operating costs low.
Business Taxes in BC
Businesses in British Columbia pay a corporate tax rate of 26 per cent – among the lowest of the major industrialized nations. Tax incentives and credits can further reduce the effective rate for specific businesses, such as those engaged in international financial transactions, research and development, and clean energy. Incentives under the International Business Activity
program, for example, may help reduce a company’s net tax rate to as little as 15 per cent.
Corporations that are not permanently established in British Columbia are generally taxed solely on income from Canadian sources. Corporations based in the province are taxed on their worldwide income. The income of non-residents is typically subject to a withholding tax – an amount withheld on behalf of the non-resident and remitted to the federal government. However, tax treaties between Canada and other countries mean many of non-resident businesses pay no Canadian tax on their profits.
Business Costs in BC
British Columbia actively encourages investment, and is creating one of the best business climates in North America. Our policies lower the cost of doing business, for example:
- There are no provincial payroll taxes, no capital tax, and no property tax on most production machinery or equipment.
- Federal tax laws require employers to pay only 4.95 per cent of payroll for social security taxes and 2.63 per cent for employment insurance.
- Health care coverage for employees is very affordable for employers. It is also optional. A premium for government-supported health care costs $1,536 a year for a family of three or more – 86 per cent lower than in some U.S. jurisdictions.
- British Columbia helps you train your employees. You can receive an annual tax credit of up to $4,000 per apprentice, depending on salary, program and apprenticeship level. Eligible employees can also receive tax credits – $1,000 to $2,500 depending on the apprenticeship level they complete.