TAXES, INCENTIVES & PROGRAMS FOR BUSINESS
Top companies are experiencing the bottom-line advantages of doing business in British Columbia (B.C.), which includes being able to leverage a competitive corporate tax system and a variety of programs and tax incentives. B.C. is also focused on regulatory reform to make it easier to do business, with streamlined and agile programs in place to create smart regulations that promote growth and innovation.
B.C. Advantages
Streamlined Regulations
British Columbia is committed to streamlining regulations that promote economic growth, innovation, and inclusion. We are working hard to make sure our regulations, policies and programs meet the needs of people, businesses and industry. Streamlining of regulations occurs through ongoing regulatory reform and various modernization initiatives. The provincial government publishes an annual report, Better Regulations for British Columbians, that describes regulatory and service improvements made across government every year.
Competitive Corporate Taxes
B.C.’s competitive corporate tax rates leave companies with more to invest and grow. The tax system is fair, transparent, and applied consistently.
Companies based in B.C. are subject to both Federal and Provincial corporate taxes. Canadian corporations are subject to a 15% federal corporate tax rate. A lower rate may apply to small businesses, where the income business limit is $500,000.
B.C. has two rates of corporate income tax: the general rate and the lower small business rate. The current general corporate income tax rate is 12% and only 2% for small businesses. Taxation of investment income applies at the same general corporate income tax rate. The combined 27% provincial and federal tax rate is below the average tax rate across all U.S. states and Canadian provinces.
A foreign tax credit is also available for eligible corporations that pay taxes to another country on foreign non-business income. The credit reduces the provincial tax otherwise payable.
PROGRAMS AND BUSINESS INCENTIVES
B.C. is pro-business and has a wide range of programs available to help lower operating costs or provide an avenue for businesses to access essential funds. There are also many Federal and Provincial tax credits available for businesses that qualify based on industry. The B.C. Ministry of Finance publishes a comprehensive list of these tax credits.
Tax credits and programs targeting specific sectors of the economy, which in some cases, are funded by the provincial government in cooperation with the federal government, include:
Information pertaining to other types of taxes and tax credits can be referenced through the B.C. Ministry of Finance website. Other notable programs that are non-sector specific Include:
- BC Employer Training Tax Credit (Province of B.C.)
- BC Small Business Venture Capital Tax Credit (Province of B.C.)
- Climate Action and Low Carbon Operations Incentives (BC Hydro)
- InBC Investment Fund (Province of B.C.)
- InnovateBC R&D Tax Grants (Province of B.C.)
- Scientific Research and Experimental Development Tax Incentive (Government of Canada & Province of B.C.)
Other economic development funding and grants can also be explored through the B.C. Provincial Government website.
CANADIAN FEDERAL GOVERNMENT PROGRAMS AND INCENTIVES
The Government of Canada offers various supports to businesses across the country, providing assistance with financing, development, tax credits, and wage subsidies. The following are some of the most widely accessed programs:
- British Columbia Environmental Tax Credit (Government of Canada)
- Canadian Technology Accelerators (Government of Canada)
- Industrial Research Assistance Program (Government of Canada) – This National Research Council program provides funding to support innovative research and development projects.
- Strategic Innovation Fund (Government of Canada) – This program offers funding for business innovation and growth, as well as industrial research and development.
- Scientific Research and Experimental Development (Government of Canada) – This program provides organizations undertaking basic research, applied research and experimental development tax credits.
Overseen by Innovation, Science and Economic Development Canada are also a wide variety of other Programs and Initiatives available to Canadian businesses in all areas of the economy.
The Business Benefits Finder can be used to navigate the more than 1,600 federal government programs and incentives available to businesses in Canada.
Learn More About British Columbia
Discover the sector or regional advantages to support your business. Learn more about community engagement and consulting with Indigenous people and First Nations communities in British Columbia.