Guide To Doing Business In Canada: Taxation

In Canada, an income tax is levied by both the federal and provincial/territorial governments, and a variety of other taxes, including federal and provincial value-added and sales taxes, are also imposed.

This chapter focuses on income tax and discusses some of the principal income tax considerations that apply to non-residents of Canada who wish to invest or carry on business in the country. Although a wide variety of business structures are available to non-residents, the following discussion mainly addresses the income tax considerations that apply to Canadian subsidiaries and branch operations. Since Canadian income tax rules are complex and subject to change, the information here is not intended to be comprehensive.