Corporate tax law – Canada

Canada Revenue Agency (CRA) administers the Income Tax Act and Regulations. Each province has income tax legislation, but for most provinces (excluding Alberta, Ontario and Quebec), the CRA administers this legislation.

The Canadian Department of Finance announced a number of tax reductions, which affect individuals, families and businesses.

• Highlights – Chapter 3: broad based tax reductions for Canadians

Incentives for industry
To encourage investment, the federal government provides incentives for businesses engaged in certain activities.

• Federal incentive programs
• Scientific Research and Experimental Development (SR&ED) tax incentive program

Payroll tax deductions
Employers, including non-resident employers, are required to deduct payroll taxes from employee salaries and wages and remit these amounts to the CRA. This includes Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums and income tax.

• Payroll tax deductions: Information about deducting and remitting payroll taxes
• Employer’s Guide to Payroll Deductions and Remittances: A comprehensive guide about employer responsibilities for payroll taxes
• Employee or Self-Employed: A guide to help employers determine a worker's employment status

International and non-resident taxes
The Canada Revenue Agency website contains information about international and non-resident taxes.

• Special considerations for non-residents: Find useful information about foreign reporting, foreign spin-offs, investments in Canadian mutual funds, providing services in Canada, rental income and non-resident tax, selling Canadian property, transfer pricing and more.

Tax legislation and rates
Federal income tax rates are uniform. Provincial income tax rates vary by province and type of income earned. Alberta has one of the lowest corporate tax rates in Canada.

• Tax rates
• Canada Income Tax Act and Regulations

More resources:

Doing Business in Canada
Find additional information about taxation and valuable references about investing and doing business in Canada.

Canada Business
Understand how provincial and federal taxes apply to your business.

The Business Link
Taxation information for Alberta's small business community.

Date Updated:
RDP-1695