Taxes

Competitive Tax Climate

 As one of North America’s most dynamic business environments, British Columbia offers strategic advantages that include a competitive tax climate, a culture of innovation and rewarding industry-specific tax credit programs.
 

Corporate Income Tax

British Columbia’s general corporate income tax rate is only 12%. When combined with the federal rate, British Columbia businesses pay a combined general corporate income tax rate of 27% — among the lowest in the G7.

Tax Credits and Exemptions

Along with affordable base rates, we offer tax credits and exemptions to many industries. These include research and development, mining exploration, oil and natural gas production, film and TV production, interactive digital media and international business.

British Columbia has no capital tax and no provincial sales tax on most production machinery and equipment.
 

Effective Corporate Income Tax Rates

  Manufacturing Digital (2-sector average) R&D Corporate Services
British Columbia 15.6% 14.7% 0.0%* 21.0%
San Diego, California 31.8% 31.7% 18.7% 35.6%
Portland, Oregon 31.8% 36.9% 21.9% 41.3%
Seattle, Washington 26.7% 31.5% 18.5% 34.6%

Source: KPMG, Competitive Alternatives - Special Report: Focus on Tax, 2016 edition
* R&D tax credits eliminate all income tax liabilities.

 

Personal Income Tax

British Columbia has the lowest provincial personal income taxes in Canada for people earning up to $125,000.