British Columbia, Canada is an attractive place to do business. Our competitive corporate tax rate, 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 27% – among the lowest in the G7. Tax incentives and credits can further reduce the effective rate for specific businesses, such as those engaged in research and development.
A corporation that has a permanent establishment in British Columbia is taxed on its income allocated to British Columbia. A corporation that only has a permanent establishment in British Columbia must pay tax to British Columbia on its worldwide income. Corporations that are not Canadian corporations but carry on business through a Canadian branch may also be may be subject to an additional federal tax. Payments to a non-resident corporation may be subject to withholding tax. However, non-resident corporations that are resident in a country with which Canada has entered into a Tax Treaty may benefit from a reduced rate of withholding or Canadian taxation.
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:
- British Columbia has no capital tax and no sales tax on most production machinery or equipment.
- British Columbia employers pay only 4.95% of payroll for social security taxes and 2.324% for employment insurance, up to a capped maximum amounts.
- British Columbia helps you train your employees eligible employers may receive tax credits based on the wages paid to an eligible apprentice to a maximum of $4,000 per apprentice per year depending on salary, program and apprenticeship level. Eligible apprentices can receive tax credits too — up to $2,500 depending on the apprenticeship level they complete.