Canada — corporate tax, VAT, and dividend treatment
Canada corporate income tax (26.5%), VAT (5%), and dividend withholding (25%), with cross-country context.
Country notes
Federal general corporate income tax rate is 15%. The small business deduction reduces the federal rate to 9% on the first CAD 500,000 of active business income for CCPCs. Combined federal+provincial general rates are approximately 23% in Alberta, 26.5% in Ontario and Quebec, 27% in British Columbia, and up to 31% in Newfoundland and Labrador. The 26.5% Ontario combined rate is shown as the headline figure; refer to the country profile notes for province-specific rates.
Key data
| Corporate income tax | 26.5% |
|---|---|
| Standard VAT | 5% |
| Dividend withholding (default) | 25% |
| Currency | CAD |
| EU member | No |
Cross-country context
| Corporate income tax | 26.5% |
|---|---|
| Median across covered countries | 22 |
| Lowest in the data set | 9 (United Arab Emirates) |
| Highest in the data set | 30 (Germany) |
| Rank within the data set | #12 of 13 |
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Methodology
Applies the headline corporate income tax rate from the country profile to the entered profit before tax. Reduced rates, SME thresholds, surtaxes, dividend layers, and jurisdiction-specific deductions are not modelled. Result is an estimate for orientation, not tax advice.
These calculations are informational estimates based on headline rates and transparent assumptions — not tax, accounting, or legal advice. Verify with a qualified local advisor before relying on the results.
Related
Other countries in the region
Featured ranking
Country profile
Sources
- Canada Revenue Agency — Canada Revenue Agency (accessed )
- OECD — OECD — economic and tax statistics (accessed )
- PricewaterhouseCoopers — PwC Worldwide Tax Summaries (accessed )
- Stripe — Stripe — supported countries (accessed )
- Wise — Wise — service availability (accessed )
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