SCI - Canadian Tax Policy, Commercial Law

If you are looking for a dynamic and prosperous country to invest, innovate, grow or expand your business on the "stage" of the world, think about investment in Canada if you can. Because this place will open many opportunities for you to develop in your career.

Canada's corporate income tax is 13% lower than the US. In January 2011, Canada reduced federal corporate income tax from 18% down to 16.5%. And the further plan is to cut down to 15% of provincial and federal corporate taxes in 2020. When compared to the level of 39.2% - the corporate income tax in the US, Canada has brought a significant advantage to foreign investors.

Things you need to know about Taxes in Canada:

  • In Canada, the tax policy applies to Canadian-owned investors in a tax-paying country of 30% of dividend. In case the dividend of this enterprise is CAD 10 million, the tax payable by Canadian investors is CAD 10 million x 30% = CAD 3 million.
  • According to the current Economic Laws in Canada, the basis for the investors' assets will now be similar to that of Canadian businesses.
  • Tax filing deadline is set on April 30 every year. If those who pay less tax and have to pay more taxes but filing lately, they will be penalized by the government by calculating interest every day on the extra tax. In fact, Canada's tax policy also offers many other saving opportunities for foreign investors.
  • Canada levies personal income tax based on residence status and not nationality. A Canadian permanent resident is entitled to apply for Canadian nationality and passport after 3 years of residence.
  • Everyone living in Canada must pay global income tax. However, newly coming permanent residents are allowed to register company establishment. These are companies established in countries with preferential policies or tax exemptions (each year only a small amount to be paid to the local budget) if the company operates outside its territory.
  • Canada's non-resident citizens do not need to pay global income tax. They only need to pay taxes on some of the income and profits earned from selling property or stocks within Canada.
  • Canada does not tax property inheritance.
  • All of these factors show that Canada is the right choice, even in considering tax.
  • The high or low tariffs of each province are also adjusted and changed annually depending on the needs and intentions of the provincial government. And the calculation of income tax does not limit the working age, meaning that if you do, you will have to pay taxes.

Canadian government's priorities with investors on Commercial Law:

  • Canadian businesses are shifting to trade more with Asian economies, so "the government's job is focus on reducing barriers and helping enterprises to develop their business easier. "
  • Each province in the land of maple leaves has a separate investment attraction policy. For example, New Brunswick is one of the provinces with low deposits of only CAD 100,000 (VND 1.7 billion) compared to the usual level of 200,000 CAD (VND 3.4 billion) of other provinces.
  • Health and education benefits for residents are covered by the government; The lowest crime rate in the world, modern transport infrastructure, and a wide domestic air network help to move and develop economy easily.
  • Each province and territory of Canada has different incentive programs to promote investment. These programs help companies reduce costs for all different types of investments. Activities that encourage foreign investors include: full subsidies, interest-free loans, risk-sharing agreements and investment credits. Different provinces will have different incentive programs.

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