Corporate Income Tax Rates
Corporate Income Tax Rates Canada
Effective January 1, 2011 the corporate income tax rate falls to 16.5% from 18% of 2010 corporate income tax rate. Yearly tax reductions will see the corporate income tax rate fall to 15% as of January 1, 2012. These corporate income tax reductions, says the Department of Finance Canada, will give Canadian corporations the lowest tax rate on new business investment in the Group of Seven (G7) by 2011 and the lowest statutory tax rate in the G7 by 2012.
Provincial or territorial rates
Generally, provinces and territories have two rates of income tax – a lower rate and a higher rate.
Lower Provincial Income Tax Rate
The lower provincial income tax rate applies to either:
Higher Provincial Income Tax Rate
The higher provincial income tax rate applies to all other taxable income.
Provincial and territorial tax rates (except Quebec and Alberta)
The following table shows the income tax rates for provinces and territories (except Quebec and Alberta, which do not have corporation tax collection agreements with the Canada Revenue Agency).
These Corporate Tax Rates for Canadian Provinces & Territories are in effect on January 1, 2010, and many will change during 2010.
The above information provided by Canada Revenue Agency.