This barrier is unrelated to the end of the transition period, following the United Kingdom's departure from the EU.

Public ID: PID-G3N7NG

Tax advantage for domestic businesses over foreign-based exporters and investors in Canada

in Canada

Trade barrier summary

This affects UK businesses with operations in Canada. A private corporation which is controlled by Canadian residents may be designated a Canadian Controlled Private Corporation (CCPC). These are eligible for various tax advantages such as small business deductions on income tax, enhanced investment tax credits and shareholder entitlement to capital gains exemption.

This means that CCPC net tax rate is 9% compared to 15% for other corporations. As a result, UK companies with operations in Canada face added costs.

Sectors affected

  • All sectors



Date reported

17 July 2019

Last updated

18 December 2020

Public ID


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