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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.

Doing Business in BC

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.

Doing Business in BC

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:

SectorProgram, Incentive, Fund or Tax Credit
AgrifoodCanadian Fish and Seafood Opportunities Fund (Federal)
Livestock Price Insurance Program (Federal & Provincial)
Agri TechnologyCanada-BC Agri-Innovation (Federal)
Regional Innovation Ecosystems in Western Canada (Federal)
Artificial IntelligenceBC Tech Fund (Provincial)
Augmented/Virtual RealityBC Tech Fund (Provincial)
International Industry Initiatives Program (Provincial)
CleantechRegional Innovation Ecosystems in Western Canada (Federal)
Digital Media & EntertainmentFilm & Television Production Services Tax Credit (Provincial)
Film Incentive BC (Provincial)
BC Interactive Digital Media Tax Credit (Provincial)
International Industry Initiatives Program (Provincial)
Forestry & Mass TimberBC Logging Tax Credit (Provincial)
Market Initiatives Program (Provincial)
Hydrogen EnergyRegional Innovation Ecosystems in Western Canada (Federal)
Information & Communications TechnologyRegional Innovation Ecosystems in Western Canada (Federal)
BC Tech Fund (Provincial)
Life SciencesBC Tech Fund (Provincial)
Regional Innovation Ecosystems in Western Canada (Federal)
Mass TimberMass Timber Demonstration Program (Provincial)
MiningMining Investment, Tax and Reclamation Tax Credits (Provincial)
Mining Exploration Tax Credit (Provincial)
Natural GasClean Growth Infrastructure Royalty Program (Provincial)
Infrastructure Royalty Credit Program (Provincial)
Natural Gas Tax Credit (Provincial)
Natural Gas Royalty Allowances (Provincial)
MarineShipbuilding and Ship Repair Tax Credit (Provincial)

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:

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:

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.